iMetal

The world’s three biggest oilfield service (OFS) companies are coming to terms with the disruption of their business in Russia by turning to other markets for future growth. This was among the key messages issued from executives during quarterly earnings calls last week.
Schlumberger was the most upbeat on the matter as it turned in a quarterly revenue that topped $6 billion for the first time in 5 years.
The company said the now 2-month Russia-Ukraine war has only had a limited impact on revenue. Most of the downside felt from its Russian exposure—which has represented around 5% of recent earnings—was attributed to the devaluation of Russian currency, it said in its latest round of calls with institutional investors.
Framing the war a “tragic conflict,” CEO Oliver Le Peuch said, “It’s very difficult at the moment to predict what the impact may be in the upcoming quarter, considering the uncertainty.”
Among the looming possibilities could be further Western sanctions that force Schlumberger to curtail or stop operating altogether in Russia. Schlumberger announced last month its intent to restrict new investment and technology deployments in Russia.
Baker Hughes made a similar decision last month to halt new investments in Russia which during the first quarter represented about 4% of the company’s $4.8 billion in revenue. The company did not offer a positive outlook on its ability to maintain that share of Russian sales in the coming months.
Brian Worrell, the chief financial officer at Baker Hughes, said on the earnings call that “sanctions from the US, UK, and the EU continue to evolve and are making ongoing operations increasingly complex and significantly more difficult.