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July 30, 2020

Digital technology to bridge the gap caused by cost cutting measures

Halliburton’s revenue decreased from US$5bn to US$3.2bn, Q1 to Q2 2020 respectively following the trend of rig activity. With revenues down resulting from depressed oil prices because of COVID-19, the company has prioritized positive earnings and generating free cashflow.

By GlobalData Energy

Halliburton’s revenue decreased from US$5bn to US$3.2bn, Q1 to Q2 2020 respectively following the trend of rig activity. With revenues down resulting from depressed oil prices because of COVID-19, the company has prioritized positive earnings and generating free cashflow. To achieve stability in their business balance sheets, Halliburton has sought to decrease their budgeted spending over the past 2 quarters by US$400mil and announced an additional US$1bn in annualized cost cuts, 75% achieved by the end of Q2. These cuts have translated to reduced fixed and service costs, reductions to their workforce and real estate, among other actions.

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To bridge the gap caused by cost cutting, Halliburton has invested in creating and improving innovative solutions in technology and digital offerings.  A prudent for Halliburton as their clientele as well as other industry players have expressed a similar cost reduction strategies.  Technology solutions enhance performance especially considering reduced operations in response to the supply glut and prop up deficits min areas such as remote monitoring and maintenance capabilities where budgets cuts have caused reductions in the workforce.

In addition to investing into technology, Halliburton has to look to markets outside of onshore US for activity.  In Q4 2019, North America was responsible for over 45% of Halliburton’s upstream activity by revenue.  However, that number shrunk to 32.8% by Q2 2020.  While the North and Latin American markets, as well as African markets are anticipated to continue to see a decline in activity, Halliburton is betting on the resilience of Middle Eastern OPEC countries and the Norwegian sector to provide opportunities. In all, Halliburton has to prepare for an outlook that has a smaller more competitive market space and require adoption of their solution from clients and wins in future contracts for the infusion of much needed cash.

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Never Trust, Always Verify: Is Zero Trust the Next Big Thing in Cybersecurity?

Cyberattacks continue to rise every year and no sector seems to be immune. Hackers target sensitive information such as organizational, client, and financial data, as well as intellectual property (IP) and proprietary functions. As digital transformation becomes a top priority for many organizations, traditional perimeter-based security models are no longer sufficient to address the growing cybersecurity concerns. Against the backdrop, enterprises explore zero trust as it takes a micro-level approach to authenticate and approve access at every point within a network. Reasons to read: The cybersecurity landscape is swiftly changing, and businesses need more awareness to meet the evolving change. The report highlights the current state of play and the future potential of the zero trust approach in cybersecurity to protect critical digital infrastructure of enterprises across sectors such as financial services, healthcare, telecom, and transportation, among others. Read our report and gather insights on the following topics:
  • Traditional vs zero trust protection
  • Key advantages and solution providers
  • Major industries and key players
  • Drivers and challenges
  • Top funded startups and Mergers & Acquisitions
  • Implementation challenges
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