What are the largest oilfield service companies in 2019?Nov 28, 2019
Eventually, we can not deny that the oilfield is the largest source of energy.
Even if there is a call for new clean energy, oil and gas remain the essential source of energy for the whole world.`
According to fortune business insights’ report, the global oilfield service market accounted for a value of US$ 250 Billion in the year 2018 and is estimated to reach US$ 330 Billion by 2026.
Knowing the top companies in the market makes you understand every change might happen.
Changes such as price fluctuations, main places or countries that own oil and gas or any other changes.
Let’s start and discuss the top largest companies in the oil and gas industry based on the information provided by the second quarter of 2019.
Largest oilfield service providers in 2019:
Schlumberger is the largest provider of oilfield service.
You can consider it as a titan of the industry.
As it has more than 100,000 employees works over 85 countries.
According to oil and gas middle east , In 2018, Schlumberger introduced technologies includes the HyperBlade hyperbolic diamond element bit, GyroSphere MEMS gyro-while drilling service, and Fulcrum cement-conveyed frac performance technology, among others.
By the second quarter of 2019, the report presents that Schlumberger beats its competitors by achieving the highest revenue.
You can see the result like the following:
Worldwide revenue of $8.3 billion increased 5% sequentially.
International revenue of $5.5 billion increased 8% sequentially.
North America revenue of $2.8 billion increased 2% sequentially.
Pretax segment operating income of $968 million increased 7% sequentially
Earnings per share (EPS) were $0.35.
Cash flow from operations and free cash flow were $1.1 billion and $0.5 billion, respectively.
A quarterly cash dividend of $0.50 per share was approved.
Let’s go to the second on the list this year, Halliburton.
Halliburton can be considered as one of the largest company in the oilfield industry.
It operates in more than 70 countries.
Also, it employs more than 55,000 people around the world in different projects and brands.
Halliburton jumped to the second-order in 2019 list due to its offers to replicate the US shale boom in Gulf Cooperation Council (GCC).
As oil and gas middle east mentioned in the article:
But lowering the cost of production is not as simple as it sounds, since the Middle East has a different set of obstacles than North America.
As such, Halliburton has made concerted efforts to ‘localise’ shale production, allowing operators to use locally-available resources to extract unconventional hydrocarbons.
By the end of July 2019, Halliburton announced a net income worth of $303 million.
Halliburton’s execution in the second quarter was outstanding and I am pleased with our results.
We continue to build on the growth momentum internationally and successfully manage the market dynamics in North America.
Jeff Miller, Chairman, President and CEO.
Baker Hughes, a GE company
The third company in the 2019 list is Baker Hughes, a GE company.
It operates in 120 countries and employs approximately 70,000 people around the world.
Besides, it provides the oil and gas industry with different products and services for:
-production and reservoir consulting.
According to oil and gas middle east report, it takes the third spot on our list because of its tireless work in the GCC, where its efforts to merge its digital technology with the localisation needs of the region have been celebrated.
According to Baker Hughes, a GE company financial report, the company revenue reached $6 billion in the second quarter.
Compared to the last quarter, this considered a great achievement.
Also, the adjusted operating income becomes $361 million for the quarter.
Baker Hughes, a GE company consider its success in having new contracts.
As mentioned in the Baker Hughes report:
In Norway, the Company was awarded two long-term contracts for downhole monitoring and sand control screens, expanding on an integrated contract award it secured in 2018 with the same customer.
In the United Arab Emirates (UAE), BHGE was awarded a long-term contract to supply upper completions and well monitoring for 94 wells.
Weir Group is one of the oldest companies in the oil and gas industry.
It listed on the London stock exchange.
Also, the company operates in over 70 countries and employs more than 14,000 employees.
The main focus of the Weir group is om mining, oil and gas, and power market.
Weir has earned a spot close to the top of our list thanks to large wellhead orders from ADNOC and KOC, among others, as part of its efforts to globalise its pressure control offering.
The company has continued to strengthen its local workforce, and boasts eight regional facilities.
oil and gas middle east report.
According to the announced report by Weir, its revenue increased by 22% by the end of July 2019.
Also, for the shareholders, the earnings by share (EPS) increased by 11% compared to 2018.
Thus, this considers as a good indicator for investors.
Looking to the full year, we currently expect our mining and infrastructure markets to continue to benefit from positive industry fundamentals with oil and gas activity to improve modestly from current levels. Overall, assuming market and macro-economic conditions remain supportive, we anticipate the Group will deliver another year of good constant currency revenue and profit growth, supported by strong execution of our We are Weir strategy. Jon Stanton, Weir Group Chief Executive Officer
In the fifth place, you can find Emerson corporation.
It employs more than 76,000 in more than 205 locations around the world.
According to oil and gas middle east magazine, Emerson corporation made several acquisitions to boost its portfolio, including Zedi’s software and automation business, GE automation division Intelligent Platforms, and analytics software firm KNet.
According to Emerson’s second-quarter report of 2019, the company made a sales growth of 8%.
Also, it generated net sales of $4.6 billion with a return of $1.6 billion to shareholders.
Besides these great results, Emerson announced a partnership with Cisco, introducing the next generation of industrial network solutions.
To help enable new digital transformation strategies, this industrial networking solution combines Emerson’s expertise in industrial automation and applications with Cisco’s innovations in networking, cybersecurity and IT infrastructure.
Being at the top of the oil and gas industry requires an open eye on new technologies and how to deal with it.
As you can see, the top five companies always working on searching and making new contacts and deals to cope.
Having New techniques will influence the company’s orders and revenue.
Also, will cause an increase in the shares prices, which will increase its earning.
And now what do you think?
Would this rank will be the same at the end of 2019? and why?
Tell us your opinion.