* H1 net income up 24 percent to $181 million
* EBITDA up 40 percent to $373 million
* Drilling increases 23 percent
MOSCOW, Aug 28 Russia's biggest oilfield
services company Eurasia Drilling Co Ltd (EDC) on
Tuesday raised its full-year targets and said it aimed to drill
more this year after increased drilling helped its first-half
net income rise 24 percent.
EDC has started using unconventional technologies, such as
horizontal drilling, to offset declining oil output from
Russia's West Siberia fields.
The world's top crude producers need novel approaches to
help them sustain annual oil output at no less than 10 million
tonnes in next 10 years.
A company official told a conference call that EDC increased
drilling volumes guidance for 2012 to "at least" 5.6 million
metres from previously expected 5.5 million metres, while its
forecast for earnings before interest, tax, depreciation and
amortisation (EBITDA) margin rose to 23.5 percent from 22.7
percent on revenues of $3.15 billion.
Earlier on Tuesday, EDC said its first-half net income rose
to $181 million. This was above a projection of $177 million
from analysts at Alfa bank.
The company said top-line revenue increased 24 percent
year-on-year to $1.56 billion in the first six months of the
year, while EBITDA jumped 40 percent to $373 million.
This was on the back of a 23 percent rise in drilling to
2.87 million metres.
Russian oil companies, faced with annual decline rates of 2
percent in their West Siberian home base, where Soviet-era
fields generate 85 percent of Russia's 10.3 million barrel per
day output, have stepped up the use of unconventional
technologies to secure Russia's position as the world's top
EDC said horizontal metres drilled during the first half of
2012 increased by 13 percent to 412,000 compared with the same
period last year.
"We are confident that we will meet both our operational and
financial targets for the year," W. Richard Anderson, EDC's
chief financial officer, said in a statement.
EDC also said net debt at the end of June increased to $350
million from $244 million at the end of 2011.
EDC was formed when Russia's second-largest oil producer,
Lukoil, spun off its oil services operations. Lukoil
remains its largest customer.