Earnings for the world’s biggest oilfield service providers may be impaired from working in Russia, according to analysts at JPMorgan Chase & Co. and Citigroup Inc., with Schlumberger estimated to have the biggest exposure in the country.
Although the companies don’t disclose specifics, JPMorgan estimates Russia makes up as much as 8% of total sales for Schlumberger. The world’s No. 1 oilfield contractor generates margins in the high teens in Russia, according to estimates from Citigroup. Baker Hughes Co. has the second-highest exposure, while Halliburton Co. rounds out the group with as much as 2% of revenue from Russia, according to JPMorgan estimates.
