FSUOGM: Russia's top four drilling firms see profit surge 54% in 2023

The combined net profit of the four biggest oilfield services companies in Russia surged by 54.1% in 2023 to RUB31.4bn ($337mn) on the back of increased drilling. The result highlights how exploration and production work in Russia remains high, despite Western sanctions and OPEC+ coordinated output cuts.

The Russian arms of US companies Weatherford and SLB, along with Burservice and OFS Technologies, the former Russian subsidiaries of Halliburton and Baker Hughes, raised their revenue by 37% last year to RUB113.8bn, according to results published under Russian accounting standards. But the cost of their sales also rose significantly, by 30%, to RUB86.8bn. Profit from sales grossed RUB36bn, up 62.5% year on year.

The four companies accounted for around a fifth of the Russian oilfield services market in 2021, prior to the war in Ukraine, and were the leaders in the high-tech segment. A further half of the market was occupied by subsidiaries of Russia’s large vertically integrated oil companies, such as Rosneft, Gazprom and Lukoil, and the rest of the market share was held by smaller independents.

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