https://www.rigzone.com/news/schlumberger_in_400mm_deal_to_sell_drilling_assets-15-may-2019-158842-article/
9 replies (most recent on top)
Sounds like that "buy here, pay here" is in play where the value of the product just goes down with every changing of hands.
What !? You guys build Toyotas? I did not know. That’s big news.
I have worked at this facility for 22 years
Smith made money on these products hand over fist
And my 401K reflects that with many 100% matches with Smith
Slb does not have a clue that we don’t build Toyota’s
We make Downhole Tools
The last year that Smith had before the Borg invasion they were to make 1.2 Billion on the so called unprofitable product lines
Hail Hail the Borg are dead
Time will tell if WIS wants to make Rankin GREAT again
These sker at slb don't give a dam about manufacturing, farm out everything. Keep only vest suit monkey in house. They think everything can be made like put popcorn in microwave. 5s, kaizen system is abuse to the max level. 10 more year there will be only robot with hard hat run repeated part with low pay
What was sold off was working at a continuous loss. This has been in the works for some time as those product lines never fit in with the core businesses. Stock price aside, it was a move that had to be done.
Schlumberger hates manufacturing staff with a singular vengeance. They do not fit in with their digital, squeeeeeeeeaaaaaky clean vision. For any Muppet/Schlumbertron who thinks differently remember that manufacturing staff do not have the benefit of 10+% yearly bonus that the pen pushers/degree wh--es currently enjoy.
Manufacturing for Schlumberger is a tortuous and arcane process only because they do not understand it, has too many oxygen thieves spouting 5S, Lean and the rest of the Ju-Ju, latching onto a discipline which really should be blindingly obvious. The managers have a total lack of Cojones because they care scared witless of having to defend their ideas and bricking it if they ever have to enter the real world and compete with real management.
The only way is down until Paaaaaaaaaaal stops listening to the bottom feeders but then again his days are rightly numbered thanks to the stellar performance of the shares. On the bright side it is comforting to see that Simon What, in an extreme show of solidarity, has sold 25000 shares, reinforcing the old adage of I'm alright Jack'.
Schlumberger cannot manufacture and it is extremely doubtful whether a digital transformation will even get off the ground as it is far too late to sell this half-arsed, drunkenly conceived initiative to clients whose wallets are already protesting in a world where we have rather too much oil.
Rhone/WIS is private equity.
That means there are 3 typical end games to cash out and get their money back.
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Take out excessive loans in the subsidiary's name, sell off assets, and file for bankruptsy.
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Build and grow the company and offer it as an IPO as a newly traded entity.
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Build and grow, and resell to SLB, competitor, or other interested party for a much higher price.
Anything SLB manages is not what makes money.
It will be repurchased for double after competent engineering finishes developing the products and manufacturing process. Just a way to outsource engineering.