The Macroeconomic Uncertainty in the Oil and Gas Equipment Service Industry

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THEMACROECONOMIC UNCERTAINTYINTHE OILANDGAS EQUIPMENTSERVICE INDUSTRY We explore how the macroeconomic fluctuation can really affect the performance of a company. We analyze the companies of the oil and gas equipment service industry: FMC Technologies, NOV, and Schlumberger. We use the MUST Analysis in order to discover what were the macroeconomic variables that really affects our companies’ performance, the magnitude, and the direction of the variables with the performance. The data sources we use were the companies’ annual report, an external analyst view on our companies, and secondary data on various macroeconomic data. We also specifically analyze how those macroeconomic variables can be a benchmark of our companies’ CEO performance.

Group 4:Arzigul Garayeva & Cita Utami

Table of Contents
Introduction .................................................................................................................................................. 2 Company Description and Internal Analysis ................................................................................................. 3 FMC Technologies..................................................................................................................................... 3 Table 1: Internal Report for FMC Technologies .................................................................................... 4 National Oilwell Varco .............................................................................................................................. 4 Table 2: Internal Report for NOV .......................................................................................................... 6 Schlumberger............................................................................................................................................ 6 Table 3: Internal Report for Schlumberger ........................................................................................... 7 External Analysis ........................................................................................................................................... 8 Fundamental Analysis: The MUST Analysis .................................................................................................. 8 Table 4: Macroeconomic Variables for FMC Technologies................................................................. 11 Table 5: Macroeconomic Variables for NOV....................................................................................... 11 Table 6: Macroeconomic Variables for Schlumberger........................................................................ 11 Regression Analysis..................................................................................................................................... 12 Expectations............................................................................................................................................ 12 Results..................................................................................................................................................... 12 Table 7: Coefficients for FMC Technologies........................................................................................ 14 Table 8: Coefficients for NOV.............................................................................................................. 15 Table 9: Coefficients for Schlumberger............................................................................................... 16 Sensitivity Analysis .................................................................................................................................. 17 Table 10: The Macroeconomic Influence for FMC Technologies........................................................ 17 Table 11: The Macroeconomic Influence for NOV.............................................................................. 17 Table 12: The Macroeconomic...
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