The Net Profit of the Oil Service “OFS Technology” Tripled in 2023
The company noted that positive dynamics were achieved due to several factors – increasing activity on current projects and implementing new projects.
The net profit of the oil service company OFS Technologies (formerly Baker Hughes in Russia) grew to 6.4 billion rubles in 2023, the company reported. This is more than 3 times higher than the result of 2022, when the same figure amounted to 2.08 billion rubles.
“Over 12 months, the company increased revenue by 48% – to 42.5 billion rubles, net profit amounted to 6.4 billion rubles, while increasing operating profitability by 8%,” the statement says.
The company notes that positive dynamics were achieved due to several factors – increasing activity on current projects and implementing new projects, in particular, OFS Technologies began work on one of the key integrated projects in Eastern Siberia.
“In addition, for a number of current projects, the company was forced to increase prices due to an increase in purchase prices for materials and equipment, as well as an increase in prices for contractors. At the same time, in 2023, the company invested more than 3 billion rubles in a strategically important area – localization of production of high-tech equipment for drilling and well completion, as well as updating the fleet of technological equipment. In 2024, the company plans to increase spending on investment activities,” the statement says.
Company President David Gadzhimirzaev noted that the company’s positive dynamics are also due to timely adjustment of the order portfolio – an increase in the share of horizontal drilling and high-tech drilling.
“In addition, last year we managed to resolve difficulties with the supply of equipment. We updated the pool of suppliers, localized production as much as possible. We also found resources for implementing investment projects within the company, increased our staff by more than 20%, despite the shortage of personnel in the market.” , he noted.
The OFS Technologies group of companies provides oilfield services and equipment and ensures uninterrupted operation of the largest oil and gas companies in the Russian energy sector. The group was formed in November 2022, after Russian President Vladimir Putin approved the transfer of Russian assets of the American Baker Hughes to Russian management.
