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Petro Welt Technologies AG: Consolidated financial results 2020: Profit before tax shows one of the best performances in the oilfield services industry - Seite 2

The COVID-19 crisis also showed that the Group is well positioned in the market thanks to its processes, technologies, and services. In 2020, Wellprop, the Group's proppant manufacturing subsidiary, introduced a new product to the Russian market (ROSPROP HS RCP), which serves a new niche in high-stress fracturing markets.

Success through adaptation and diversification
Not only did PeWeTe launch new products and services, it also expanded into new territories in 2020. PeWeTe EVO Europe started operations with five workover jobs in the Drilling, Sidetracking, and IPM segment in Romania. PeWeTe EVO Services, the Group's subsidiary in Oman established in 2020, succeeded in obtaining and commissioning the equipment for one coiled tubing and one fracturing fleet, and started its first coiled tubing operations in April 2021.

Despite the worsening of drilling market conditions in 2020, PeWeTe's operating subsidiaries in the Drilling, Sidetracking, and IPM segment remained relatively stable (including KATOBneft and KAToil-Drilling). The total number of service jobs in this segment increased by 5.6% to 281 jobs in 2020 (2019: 266), but the average segment revenue per job in 2020 fell by 15.7% to TEUR 467.0 (2019: TEUR 554.0).

Although the fracturing market declined sharply both in Russia and Kazakhstan, the total number of fracturing and remedial services jobs in the Well Services and Stimulation segment, which includes KATKoneft and PeWeTe Kazakhstan, decreased only slightly by 1.1% (or 50 jobs) from 4,486 in 2019 to 4,436 in 2020. The average revenue per job declined by 18.7% from TEUR 31.1 in 2019 to 25.3 in 2020.

However, due to a swift adaptation of PeWeTe's oilfield service business model, which created ground for further economic optimization, the operating margins of both oilfield services segments increased: in the Well Services and Stimulation segment from 5.3% in 2019 to 8.3% in 2020, and in the Drilling, Sidetracking, and IPM segment from 4.9% in 2019 to 12.0% in 2020 (without the effect of an impairment loss at the CGU PeWeTe EVO EUROPE charged to the cost of sales in 2020).