Oilfield Service and Rentals Action Plan for 2015

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

www.riger.ca © 2015 Belca Soft Corporation. All Rights Reserved 2

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


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


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!


Action Plan: Focus Areas


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!


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


Action Plan: Finance


Expense Cutting

Cash Flow Optimization

Receivables

Payables

Have Working Budget

Outsource Expensive Projects

Control Your Expenses

Optimize Business Processes

Expenses


Control Cash Flow Daily

Collect Fast, Pay Slow

Payment Calendar• Payment Category and Priority• Payment Schedule

Review CAPEX Budget

Cash Flow


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


AR vs AP Analysis

Leasing vs Credit

Consolidate Debt

New Investments • M&A• Assets Sales

Payables


Optimize Management StructureCut Payroll and BenefitsMake Smart Staff SelectionReview Bonus SystemMotivate Non Cash BasedFreeze Hiring Promote Part-timeGrant Extra VacationsLay Off

Personnel


Search and Study New Technologies

Implement Best Practices

Make your Business Innovative

Re-Invent your Products and Services

Technology


Describe Key Business Processes

Identify Problems

Improve and Optimize Processes

Implement Software Solutions

Business Processes


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


www.riger.caRigER is Oilfield Service and Rental Operations Management Software

http://www.riger.ca/

Stay Positive! Be Creative!


“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


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


Use Version 2.1

Oilfield Service and Rentals Action Plan for 2015

Business

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control cash flow dailycollect

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