Energy Services and Equipment
Energy Services and Equipment Key Factors
Lowest Drilling for Oil and Gas in 5 decades
North American onshore fracking and other sales tumbled 60% from the previous quarter’s level at SLB. The number of wells drilled worldwide this year is expected to drop by almost a quarter, with no forecast of a full recovery in the coming years, according to industry consultant Rystad Energy.
Massive Cuts in Capex
Oil services giants has borne the brunt of massive cutbacks in energy industry spending.
H1'2020 - c19 Cut 20% workforce, Worst Quarter Sales in 14 years - Claims Saving Dividend
July-end'20 Cutting one-fifth of its workforce from 105k end'19 as nip off nascent recovery in global energy demand. Schlumberger said it’s letting go more than 21,000 employees, shrinking staffing to an 11-year low. It incurred $1 billion severance costs in the quarter, in addition to another $2.7 billion of various restructuring and impairment charges.
PARTIAL COST CUTS - 40% of its $1.5 billion in cost cuts for the year, which means another $900 million in reductions still to be incurred.
Despite disastrous results in some business lines -- -- Le Peuch shielded the 12.5-cent-a-share dividend from additional reductions. Just three months ago, the CEO reduced the payout for the first time in more than 40 years.
Halliburton impressed investors with better-than-expected cost cuts
Emphasized enhanced technology
Looking internationally for better revenue growth.
Baker Hughes warned investors of a possible second wave of coronavirus cases leading to lockdowns again.