The US oil rig count fell for a 27th straight week. The combined oil and natural gas rig count fell by seven to 868, the lowest level since January 24, 2003. The bottom has not been reached yet.
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Storm coming today, up to10 inches of rain expected in Houston.
Tick tick tick....
It has begun and will continue
June 23,24,25
The next round of layoff will take place before the end of June before Q2 books are closed, not July 21. Biz is running at 30% to 50% lower than 2014. Booking looks worse in Q3!
A storm is coming. Be ready.
My thoughts based on some past facts:
The downfall continues. When Q1, 2015 results came out, Baker Hughes' gross profit fell the most in the sector i.e. it fell down by 31%, followed by Halliburton (29%), FTI (29%), NOV (27%) and Schlumberger (22%).
Now, Q2 results are expected on July 21st, and the situation from Q1 to Q2 has only worsened looking at the declining rig count which has continued to drop for last 27 weeks and another fact is 41% of Bakers' total revenue comes form North America. Prior to Q1, 2015 earnings call, Baker had only cut 16% of its work force (10,500), but now given the situation they will need to make much deeper cuts before July 21st as they need to cover for lack of cuts in Q1 compared to its competitors.
Lets assume, if the rig count stabilizes or stops declining next week, there will be months of lag time , and we won't see the benefit in short term no sooner than Q4.
I think Q2, 2015 is actually the worst quarter for the company and thus for the employees, and I would not be surprised if Baker cuts another 15% or even higher percentage to reduce its operating cost
Starting June 22nd if I were you, I would expect a tough time, and would be mentally prepared to be layoff, see fellow works leave and/or retire. Also, would expect drug tests, back stabbing, and red tape.
Again, these are just my thoughts based on some past numbers.
Good luck to all!
Ok
Yes everything will get worse from now on. The countdown has begun.