Eurasia Drilling Co.’s first half profit increased 15 percent after Russia’s largest oilfield services company completed more wells.
Net income rose to $217 million in the first six months of the year from $189 million in the same period the previous year, according to a statement by the Moscow-based company. Revenue rose 7.6 percent to $1.7 billion.
Oil companies in Russia, the world’s largest producer, have boosted spending on drilling as depleting Soviet-era fields require additional work to stem output declines. President Vladimir Putin has pledged to hold oil production, the country’s largest single tax earner, steady for decades.
“The Russian drilling market continued to expand in the first half,” said Alexander Djaparidze, Eurasia chief executive officer. “We are, therefore, optimistic for the rest of the year and committed to delivering strong results in line with our expectations.”
The oilfield services company is aiming for $3.6 billion in sales for the full year, according to a January statement.
Drilling climbed 5.9 percent to 3.04 million meters (9.97 million feet) in the first half. Horizontal drilling increased 20 percent from the same period the previous year to 492,000 meters, accounting for 16 percent of total volumes, according to the statement. Eurasia expects horizontal volumes to continue to rise, Djaparidze said.
Earnings before interest, taxation, depreciation and amortization, or Ebitda, increased 17 percent to $441 million, with the Ebitda margin increasing to 26 percent from 23.9 percent in the same period the previous year, according to the statement.
Capital expenditure in the first half fell to $179 million from $282 million in the first six months of 2012, Eurasia Drilling said.
To contact the reporter on this story: Stephen Bierman in Moscow at email@example.com