UPDATE 1-SLB warns of business risks from Western sanctions as Russian revenues rise

(Add details, background on securities filings)

by Leeds Hampton

Jan 25 (Reuters) – Top oilfield services firm SLB warned on Wednesday that additional sanctions against Russia could pose business risks even as its revenues in Russia continued to grow, a regulatory filing showed.

SLB expanded its presence in Russia last year as oil prices soared and rivals fled following Western sanctions on Russia over its invasion of Ukraine. Russia will account for 6% of SLB’s full-year 2022 revenue, or $1.69 billion, the company said in an annual filing.

Russia accounted for 5% of the company’s total revenue in the quarter preceding Moscow’s invasion of Ukraine, according to a previous company filing. It began disclosing more details about postwar Russian income and assets.

The Curacao-based company suspended new investments and technology deployments in Russia in March last year and said it would continue to “actively monitor the dynamics in Ukraine and restrictions on applicable laws, sanctions and trade controls resulting from the conflict,” the documents show. “.

It continues to work for Russian energy companies including Lukoil, Rosneft, Gazprom, as rivals Halliburton and Baker Hughes exit or sell their businesses.

SLB said the book value of its net assets in Russia would total about $700 million by the end of 2022, down from $900 million at the end of the third quarter of 2022. It ended the year with $300 million in accounts receivable, down from $400 million a year earlier. the third quater.

The oilfield company also said it has about $1 billion in outstanding bills related to Mexico, according to the filing. Unidentified receivables from major customers in Mexico are not in dispute, the company said. It said it had not historically experienced any significant write-offs due to uncollected bills from the company.

SLB did not immediately respond to an email seeking more details about the document. (Reporting by Liz Hampton in Denver; Editing by Anna Driver)

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