NOV warns of impact of Russia sanctions

Sanctions: NOV warns on Russia business

Oil services contractor National Oilwell Varco warned on Monday that US sanctions against Russia would likely have an impact on the company's future earnings.

The US and EU last week announced broader sanctions against the Vladimir Putin-led country that includes restricting exports of technology for Russia's energy sector.

Houston-based NOV said in a securities filing that sales to customers in Russia accounted for around $60 million of earnings in the second quarter and $100 million in the first half of the year.

"Some or all such sales may be restricted in the future by these sanctions," the filing said. "The company’s net investment in Russia was approximately $140 million at June 30, 2014.

"The severity of delayed or lost future revenue, and any possible impairment of our net investment, will depend on the duration of the sanctions and other government actions."

NOV last week reported second-quarter profits that werre 17% higher than a year earlier. Its sales for the quarter totalled $5.26 billion.

Other US companies with major operations in Russia such as ExxonMobil and Halliburton have said they are monitoring the situation to gauge the impact of the sanctions.

BP said recently that further sanctions against Russia would likely have an impact on its bottom line.

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