SL hasn't been hit as much as the other divisions because chemicals still need to be sold to existing wells. It all comes down to business if you are not making money for the company they will divest you or cut costs. I heard the Polymers business was not sold because Baker wasn't going to make enough money from selling it. Also, that group is fairly small i believe and brings in a high profit margin that often exceeds plan when oil prices are low. Halliburton will probably divest this business along with other non core when the deal is done.
5 replies (most recent on top)
How many people were let go?
Polymers has been nothing but a distraction ever since Baker inherited it from the Petrolite acquisition. There were many opportunities to sell the business at an acceptable ROC but previous management kept delaying while the plant was run down to the bones and operating on band aids. Meanwhile, capable managers left while those remaining for the most part are inept, and not qualified due to unrelated work experience. Some can hardly speak their native tongue let alone English. Margins are mentioned but they come mainly from resale products like the waxes which are produced by an outside party in Asia. As for the polyethylene waxes there are much stronger competitors out there. It would appear that it is correct to state that HAL will probably divest this business.
We do not need them to sell chemicals
The field doesn't need Sugar Land to sell chemicals. They'd probably sell more chemicals with fewer people in sugar land...less overhead, lower price.
So, you think HAL will divest?