Eurasia Drilling warns of sanctions impact in Russia

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MOSCOW, Aug 28 (Reuters) - Russia's biggest oilfield services company, Eurasia Drilling Co (EDC), said future growth may suffer if western sanctions over Ukraine are extended, as it reported first-half profits hit by the weaker rouble.

"The recently announced sanctions have had no impact to date on our activities in Russia," Alexander Djaparidze, Chief Executive Officer, said in a statement on Thursday.

"However, our future growth may suffer if the sanctions are extended to other areas and, specifically, if our clients are unable to expand into shale drilling at the levels envisaged."

EDC shares had declined by 0.3 percent as of 1210 GMT.

The company's bottom line was also hit after Russia's top oil producer Rosneft decided to cooperate closer with Norway's North Atlantic Drilling Ltd.

Eurasia Drilling said the share of Rosneft in its total metres drilled decreased to 11 percent in January-to-June from 24 percent in the year-earlier period.

Chief Financial Officer Richard Anderson said Eurasia Drilling was on the way to meeting its financial and operational targets for the year and that revenues should increase.

Its first-half net income declined 7.2 percent to $201 million, mainly due to the weaker Russian currency.

January-to-June revenue decreased by 8.5 percent to $1.55 billion, while its EBITDA margin edged down to 25.9 percent from 26 percent in the year-earlier period. (Reporting by Vladimir Soldatkin; editing by Christian Lowe and Tom Pfeiffer)