It does not make any sense.
13 replies (most recent on top)
Big Oil Companies make more by laying off their staff as well. Maybe there are more reasons to it. Nonetheless, embrace the new era and spend wisely
Although the previous post is insightful and perhaps correct but the answer is quite obvious. The CEO is pathetic along with his (non)leadership team. Its been 7/8 years with this useless teet. What more do we need to see? Bring back Pete or at least who Pete really wanted replace him (Transocean's CEO) before all the crying from the current CEO.....
This is strictly a business fundamental issue. NOV is not due the same amount of money that Big Oil is making. Big Oil and Drilling Contractors are utilizing existing wells and equipment to make money. NOV doesn't have services to augment their revenue and their only way of getting income is new equipment, equipment repair/service and parts sales. With a dearth of rigs stacked there is not a need for a new equipment.
Their business model was developed and reinforced during the 2000's with a bo-m in rig building. Schlumberger wisely went from primarily a service company to augmenting their business with their own equipment. NOV never joined in the services world. They also never embraced a "green energy" plan and then to make things worse had 3 to 5 to 7 facilities world wide doing the exact same thing. They are now making an effort lower costs although way too late.
There are essentially two reason for NOV losing money while O&G companies are profiting, #1, their business model is obsolete today (maybe not tomorrow) but for now it is a dinosaur and #2 their C-Suite has been incompetent for a decade and put in place a business unable to be profitable.
I’m getting great investment returns, loving it 🤑
One word - management. The whole overpaid lot need to be shown the door. The C-suite is an embarrassment to the common worker. I have reached the stage where if I read anything from the CEO, CFO, CIO, CAO, CMO etc etc, I tend to want to throw up!
Who wants to make a bet on the death of this company?
Its another enron me thinks!
Cookin books.
NOV will wind up being your corner store, gasoline and tacos.
Time for yet more layoffs and further overloading the remaining few. A vicious cycle that screws workers.
Keep closing manufacturing facilities and trying to produce out of a smaller space. You can’t hide from this mistake SVP.
Keep indirect workers. And lay off direct works who make the product.
Great business model
NOV Management wage costs ?
One word, LEADERSHIP, or is that lack of it!
Creative accountancy?
For one, the business model is flawed. And too much talent has been shown the door.