Novomet Reports Above-market Growth in 2018

21 March 2019

The Novomet Group has once again beaten its own record, reporting a turnover of RUR 23 bln as of the end of 2018, 13.5% higher than the figure for the previous year and 3% higher than the figure in its strategic plan.

Equipment shipments for direct sales increased by 7% and the volume of services rendered grew by 18% in 2018, compared with the previous year. The increase in export turnover was even greater: 22%.

The Novomet Group is expected to report a 14% growth in turnover in 2019. The group also plans to make record investments of more than RUR 6 bln in 2019. This will be the biggest figure for investments in the company’s history.

Customers have rated the Company’s equipment highly. For example, last year Novomet sold record volumes of energy-efficient oil pumping equipment: a total of 1,104 installations. For comparison, in 2016 it sold 530 such installations to oil companies.

The company’s strategic development priorities for 2019-2020 include the following:

  • Reactivation of oil wells
  • Geothermal energy
  • Systems for the maintenance of geostatic pressure
  • Oil well completion equipment.

This year the production sites in Nizhevartovsk are to be relocated to a new base. The new facility has already been acquired and the transfer will start in the near future. The site for the new base will make it possible for development of oil reserves in West Siberia to be intensified. The second high-priority project is the reconstruction of the service base in Nefteyugansk.

Also in 2019 Novomet plans to launch service bases in Western Kazakhstan (Aktau) and to transfer its operations in Egypt to its own base (Alexandria).

Reference

The Novomet Group is one of the largest holdings in Russia that manufacture oil-submersible equipment, including systems for the maintenance of geostatic pressure. The company’s strategy focuses on the development and large-scale production of equipment for use in challenging conditions. The company not only develops comprehensive equipment for oil extraction and water pumping but also carries out post-sale maintenance of equipment. It thus provides a full-cycle service from the initial selection of drilling equipment to its complete overhaul.

Novomet’s technologies enable oil extraction companies to resolve the problems posed by the fall in the oil recovery index (ORI) and the increase in the proportion of hard-to-recover oil reserves. The company provides technologies to deal with such complications as high volumes of associated gas, a high content of mechanical admixtures, high drilling temperatures, water influx, the presence of salt beds and high viscosity of oil, among others.

RUSNANO has been a shareholder in Novomet-Perm JSC since 2011.

For additional information, please visit novomet.ru