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Downturn Action Plan
Oilfield Service and RentalsAction Plan for 2015
Confidential and Proprietary Information. BelcaSoft and RigER name and logos are trademarks of Belca Soft Corporation All other product or service names are the property of their respective owners
BOOST OILFIELD RENTALS
There is a time to let things happen and a time to make things happen.-- Hugh Prather, Writer
Oil Price Crisis
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Drilling SeasonDown 40% From Last YearAlmost Over
Oil Price – Down 50-60%Oil Companies Actively Ask for Discounts10-30% Price Reduction
Sales Can Decline 10-70%
You MUST Have an Action Plan
Downturn in Oilfield
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Experience and ExpertizeWe had that before in 1986, 1998, 2008
Energy Industry Develops in CyclesGood Times Will Come!
You Are Not Alone Your Competitors Have the Same Problem
CAD vs USDWeak Canadian Dollar Helps Us
Don’t panic! It’s not NEW
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Lack of Cash is the Major Problem
Investors Turn from Oilfield to More Profitable Projects and Industries
Cash Turnover Becomes Very Slow
Cash is King!
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Action Plan: Focus Areas
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Sales
Operations
FinancePersonnel
Technology
Business Processes
Sales Require More Time and Effort in Crisis
Don’t Cut Marketing and Sales!
Diversification, Diversification, Diversification
• Avoid Major Clients (>20%)• Try Different Industries, Markets, Niches• Focus on Production and Infrastructure Projects
(Service Rigs, Pipelines, Roads, Construction, etc.)
Sales is Main Focus!
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Efficiency Becomes Paramount
Implement Smart Rental Fleet Management
Optimize Fleet Size and Location Regularly
Do More Jobs with Less Resources
Use Negative Operating Leverage
Operations
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Action Plan: Finance
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Expense Cutting
Cash Flow Optimization
Receivables
Payables
Have Working Budget
Outsource Expensive Projects
Control Your Expenses
Optimize Business Processes
Expenses
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Control Cash Flow Daily
Collect Fast, Pay Slow
Payment Calendar• Payment Category and Priority• Payment Schedule
Review CAPEX Budget
Cash Flow
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Invoice ASAPReduce Financial CycleInvolve Sales People in Collection ProcessKnow Receivables StructureWeekly Report AR 30-60-90
• 30 – Green Zone • 60 – Yellow Zone• 90 – Red Zone
Develop Collection Procedure for Each ZoneDiscounts for Early Payment
Receivables
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AR vs AP Analysis
Leasing vs Credit
Consolidate Debt
New Investments • M&A• Assets Sales
Payables
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Optimize Management StructureCut Payroll and BenefitsMake Smart Staff SelectionReview Bonus SystemMotivate Non Cash BasedFreeze Hiring Promote Part-timeGrant Extra VacationsLay Off
Personnel
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Search and Study New Technologies
Implement Best Practices
Make your Business Innovative
Re-Invent your Products and Services
Technology
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Describe Key Business Processes
Identify Problems
Improve and Optimize Processes
Implement Software Solutions
Business Processes
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All-In-One Solution for Rental Business
Rental and Service Operations Assets Management Clients Rental and Price AgreementsOilfield Locations and Rigs
Basic AccountingSales and Purchases OrdersDashboards and Powerful Reports
RigER – Boost Oilfield Rentals
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www.riger.caRigER is Oilfield Service and Rental Operations Management Software
Stay Positive! Be Creative!
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“Nobody talks of entrepreneurship as survival, but that's exactly what it is and what nurtures creative thinking.”
-- Anita Roddick, Entrepreneur and Activist
Contact Us
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Call Today!
We are Stand for Oilfield Service and RentalsWe are Proud of RigER
We would love to talk• How to Boost your Rental Business• RigER Features• Customization• Special Offers
Michael MaltsevPrincipal [email protected] (403) 918-5779
Thank you!
Better and Better Each Day!
BOOST OILFIELD RENTALS
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Use Version 2.1