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Heavy lift vessel Saipem 700 lifting Thebaud compression deck in place; Galaxy ll drill rig on right.
Heavy lift vessel Saipem 700 lifting Thebaud compression deck in place; Galaxy ll drill rig on right.
(Prisma Photo/ExxonMobil)

FINANCIAL TIMES

Oil services industry awash in operations gaffes

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

There is something up – or more accurately down – in the oil services business. A sector that should be riding a wave of Big Oil investment in exploration seems to stumble from one pratfall to another. First up this year was Saipem with a January profit warning that sent its shares crashing by a third. Now comes Aker Solutions with a tale of woe – cost overruns, project delays, idle ships, shrinking margins – across its entire business. The Norwegian operator’s shares sank 23 per cent on Monday.