Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Eurasia Drilling Q1 sales down on rouble, restructuring

Published 17/04/2014, 08:33

MOSCOW (Reuters) - Russia's biggest oilfield services company Eurasia Drilling Co (EDC) reported a 12-percent fall in first-quarter revenues on Thursday on a weaker rouble and changes in its clients.

Eurasia Drilling has reduced its cooperation with Russia's top oil producer Rosneft , which plans to develop its own drilling services.

It said Rosneft's share of EDC's total metres drilled fell to 15 percent from 20 percent a year earlier. Total drilling output was down 12 percent to 1.2 million metres.

"The first quarter was a challenging one as approximately one-third of our fleet was being moved which resulted in a lower EBITDA margin," Richard Anderson, EDC's chief financial officer, said in a statement.

Top line revenue fell to $697 million while the company's earnings before interest, taxes, depreciation and amortisation (EBITDA) margin declined to 18.8 percent from 22.6 percent a year earlier.

EDC had expected 80 percent of its onshore drilling rigs currently used by state oil company Rosneft would be reallocated to other customers this year, while the remaining 20 percent would continue to work for the state-own oil producer for the full year.

EDC accounts for 29 percent of the total number of metres drilled in Russia and its largest clients are Lukoil and Rosneft. It said its total market share in Russia was stable last year.

(Reporting by Vladimir Soldatkin; Editing by Lidia Kelly and Jason Neely)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.