How difficult was 2020 for the world largest Oilfield Services (OFS) Companies?
Looking at the earnings reports of the world largest Oilfield Services Companies for the past 7 years, you can easily see that 2020 was the most difficult year for Oilfield Services Companies especially companies like Schlumberger and Halliburton. A year that is even worse than 2015 & 2016.
When OFS companies started 2020, non of them expected 2020 to end up being the year where they see their revenues fall by an average of 30%.
But 2020 was not the same for all the top 3 OFS Companies. Unlike Schlumberger and Halliburton which saw their 2020 revenues fall by 28.31% and 36% respectively, a company with a diverse portfolio like Baker Hughes saw its revenue fall by 13% only in 2020.
Both Schlumberger and Halliburton’s revenues fell by levels not seen even during the difficult years of the previous downturn in 2015 and 2016. On the other hand, Baker Hughes managed to maintain its pre-pandemic revenue level. A step that allowed the company to overtake Halliburton in becoming the world second largest Oilfield Services Company, getting it one step closer to overtaking Schlumberger as the world largest OFS Company.
Here is a look at how the top three Oilfield Services Companies performed in 2020:
Schlumberger:
2020 revenue was down by 28.31% or $9.32 Billion to $23.60 Billion compared with $32.92 Billion in 2019.
Baker Hughes:
2020 revenue was down by 13% or $3.13 Billion to $20.71 Billion compared with $23.84 Billion in 2019.
Halliburton:
2020 revenue was down by 36% or $8 Billion to $14.44 Billion compared to a revenue of $22.41 Billion in 2019.
Traders Takeaways:
- The best investment when it comes to Oilfield Services Companies stocks is Baker Hughes and Schlumberger. Both companies have a strong position in the market, their share prices are currently undervalued and both have high potential for growth.
- Baker Hughes is positioned to become the world largest Oilfield Services Company. That means, it is the best stock to have in your list.
- Halliburton performance is expected to continue to fall, and that will be reflected in the company’s stock. Not a recommended stock.
