Calfrac considers Russian position
Canadian oil and gas field services provider Calfrac Well Services is looking at "options" for its Russian division in light of the Ukraine war, the company said on March 16.
Calfrac said the ongoing conflict "added a level of risk and uncertainty" to its Russian operations. It will now evaluate the best course of action and expects to have "more to discuss" when it reports its Q1 2022 results in May.
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While IOCs Shell, BP and others have written off assets linked to the Russian oil and gas industry, the services sector has been more cautious. Schlumberger, Halliburton and Baker Hughes all remain active in Russia.
The news came as Calfrac reported adjusted EBITDA of C$9.5mn (US$7.5mn) for the last quarter of 2021, down from $13.7mn inQ4 2020.
Calfrac blamed lower utilisation of its Russian assets for the decrease, caused by 11 days of unplanned downtime in December 2021, though it said lower operating margins in Canada also played a role. Russian revenue increased to C$28.1mn in the quarter from C$26.9mn in Q4 2020, but operating income fell to C$1.6mn from C$4.4mn.