Oil Field Services
Executives at a leading oil-field services company were puzzled. The industry was clearly cyclical, by why did this company experienced hard times that were seemingly unrelated to the normal business cycle?
They called SDG to understand the anomoly and to establish a new growth strategy for its portfolio of 34 business, many of which had been obtained by acquisition.
Working with SDG, the oil services company adopted a corporate business portfolio strategy that lead to a substantial increase in shareholder value. Through multiple teams operating in parallel, our client found ways to reduce capital expenditures and reallocate funds to more productive opportunities. The shareholder value of several businesses was significantly increased, in one case by as much as $1 billion.
The individual business strategies collectively improved shareholder value, dramatically reduced capital expenditures, and led to increased market share against a formidable competitor in one business and to increased margins in another.
