Will Schlumberger be a young company once this downturn is over, after layoff and early retirement of pretty much everyone who is 55+
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It's not possible to strategize out of the current short-term storage glut, pandemic-induced reduction in consumption, and geopolitical games. Everyone has to show that they're doing something....which does not include sitting on their hands burning through cash reserves (for those that have some).
Unless we believe that people will stop driving, using plastics, and the Saudis and Russians will accept years and years of monetary deficit, this too shall pass.... in months, quarters, however long it takes.
It s—s right now but there's nobody that could cogently strategize out of this. Not OLP, not Andrew Gould, certainly not Paal Dickguard, and not Allah himself.
Unless there is a clear revenue projection and demonstrable margins from “digital” all the CEO bs isn’t going to land with investors. SLB isn’t a growth stock or a dividend play - dipping into digital, ESG, product sales/service, North America and international - absolutely no focus. Another 2 quarters and if OLP can not convince the street that he has a strategy and it is working, it will be the end of his career too, unless he wants to join a construction company too!
Amen. Spot on just like it was before i left halliburton
"Schlumberger is an Oligarchy. It is ran by those that “have been chosen” through whatever means they’ve used to decide who will be upper managers/executives and who won’t. Some simply fail upwards, others are actually successful in the organization and just never leave. The point is - there will always be an older crowd in charge. SLB isn’t going to turn into a start up with a bunch of 26 year old kids running the place just because there was another downturn. There will just be less people overall, and people will be expected to wear more hats and do more work for the same pay. Basically Schlumberger will become a sh–ty company to work for. But that’s already been going on for the last 10 years. The days of $100+ barrel oil are long gone. SLB is working on consolidating roles, cutting the fat, loading up the plates of whoever’s left, and then telling them they’re lucky they even have a job."
Schlumberger is an Oligarchy. It is ran by those that “have been chosen” through whatever means they’ve used to decide who will be upper managers/executives and who won’t. Some simply fail upwards, others are actually successful in the organization and just never leave. The point is - there will always be an older crowd in charge. SLB isn’t going to turn into a start up with a bunch of 26 year old kids running the place just because there was another downturn. There will just be less people overall, and people will be expected to wear more hats and do more work for the same pay. Basically Schlumberger will become a sh–ty company to work for. But that’s already been going on for the last 10 years. The days of $100+ barrel oil are long gone. SLB is working on consolidating roles, cutting the fat, loading up the plates of whoever’s left, and then telling them they’re lucky they even have a job.
Schlumberger CEO, Olivier Le Peuch, commented: “First-quarter revenue of US$7.5 billion declined 9% sequentially and 5% y/y as the unprecedented global health and economic crisis sparked by the Covid-19 pandemic increasingly impacted industry activity during the quarter. The effect of this was amplified late in the quarter by a new battle for market share between the world’s largest oil producers. This double black swan event created simultaneous shocks in oil supply and demand resulting in the most challenging environment for the industry in many decades.
“Customer spending and drilling activity in North America declined as oil prices slipped early in the quarter before falling abruptly in March. This resulted in a 7% sequential decrease in North America revenue to US$2.3 billion as we accelerated our land strategy to high-grade our portfolio and resized our operational footprint. International activity, expected to be seasonally lower sequentially, suffered from Covid-19-related activity disruptions and initial customer spending cuts in response to falling oil prices. International revenue of US$5.1 billion declined 10% sequentially.