Oilfield services company Schlumberger (SLB) said its assets in Russia were worth around $600 million at the end of 2024, and vowed to stick around despite growing pressure to exit the sanctions-hit nation.
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The figure was unchanged from 2023, but revenue from the region had fallen, the company said in its 10-K filing at the Securities and Exchange Commission.
Revenues from its Russian operations represented approximately 4% of its worldwide revenue during 2024, down from 5% a year before.
The $600 million figure for its Russian assets was made up of around $100 million of cash and short-term investments, $300 million of receivables, $200 million of fixed assets, $300 million in other assets and $300 million in other liabilities.
SLB Pressured to Leave Russia
One of the last remaining Western companies in Russia, pressure on SLB to leave the country is mounting after the U.S. applied tougher new sanctions earlier this month.
The U.S. Treasury Department on January 10th outlined new sanctions that included tightening rules on Russia’s access to U.S. oilfield services, which will take effect from February 27th.
The order prohibits the provision of U.S. petroleum services to persons located in the Russian Federation, “cutting off Russia’s access to U.S. services related to the extraction and production of crude oil and other petroleum products,” the Treasury Department said.
Congressmen Lloyd Doggett and Jake Auchincloss told the Financial Times that SLB should get out of Russia now or risk breaching sanctions, noting that the order was pretty clear cut. The newspaper had last year found SLB was expanding its operations in Russia despite the Ukraine war and threat of sanctions.
“We continue to actively monitor the dynamic situation in Russia and Ukraine and applicable laws, sanctions and trade control restrictions resulting from the conflict,” SLB said in its regulatory filing.
Is SLB a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy rating on SLB, based on 13 Buys and five Holds. The average SLB price target of $53.08 implies 27.5% upside from the current level, with the stock having fallen 15% in the last year.
