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 engaged in the production of equipment for oil extraction, including systems to maintain terrastatic pressure. The company’s strategy focuses on the creation and mass fabrication of equipment for use in challenging operational conditions. The company not only constructs fully-equipped rigs for oil extraction and pumping water, but it also provides comprehensive technical support for its equipment, from preparing it for operation at the well to complete overhaul.

Novomet’s technologies provide oil extraction companies with solutions to the problems posed by low oil recovery coefficients, and an increase in the ration of difficult-to-recover reserves. Other problems which Novomet’s technologies provide solutions to include high levels of associated gas content and mechanical impurities, high temperatures in the well, flooding, salt precipitation issues, and highly-viscous oil.

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

For additional information, please visit novomet.ru