The oilfield services company GEOTECH is successfully expanding its operations in Russia and the CIS countries. In the future, the company intends to expand its presence in the Middle East and Southeast Asia, where a contract base is being formed.

The head of Geotech, Roman Panov, noted in his column in the Kommersant newspaper that last year was successful for the company. In 2024, it plans to attract more than 35% of new contracts available on the market to its portfolio.

According to him, GEOTECH expects stable revenue figures at the level of 11-12 billion rubles, the EBITDA indicator is planned to exceed the 2023 result almost twice and is estimated at 2.3 billion. rub.

The company's investment program was previously held back by a high debt burden, but now investments in the amount of 5 billion rubles in equipment upgrades are already planned.

"We now expect to maintain the net debt/EBITDA ratio at 2 and at the same time invest about 5 billion rubles in our own development. The bulk of the funds are planned for a comprehensive equipment fleet upgrade program. In the future, we expect to regularly increase the volume of investments by 10% per year," he wrote.

Panov noted that in the changed conditions, most enterprises in the oilfield services industry are reviewing their strategic plans, and GEOTECH intends to diversify its business areas.

"The company's key activities remain field seismic exploration and data interpretation, but our focus is expanding, we are studying the prospects for development in the direction of providing high-tech well services," Panov emphasized.

GEOTEK sees a trend of growth in the share of domestic oilfield services in this high-tech segment with increasing demands from oil and gas companies that are developing complex fields in poorly studied regions. The share of Russian companies in this segment has grown from 40% to more than 60%.

Source: itek