OIS Has Near-Term Downsides
Oil States International (OIS) expects the completions market to contract ominously in the near-term and may exit non-core businesses in the future. It currently focuses on the commercialization of perforating products, wireline release tool, and shaped charge technology to increase sales. To mitigate the effects of falling revenue, it may increasingly look up to cost cuttings as it aims to reduce costs significantly in FY2020.
Although it has lowered the capex budget, OIS needs to improve cash flows to survive the current downturn. One of its advantages lies in