Would you join a loss making company?

[SELXM]

My current job is a very stable GLC - I am on a lower-than-market monthly basic and getting a constant 17-18 month package for the past few years. This is an iron rice bowl job but the annual package is considered low for my job responsibility when compared to MNCs and civil service.

I am considering to join an American NYSE-listed MNC which will immediately boost my 12 months salary to be 10% more than my current 17-18 month package. This does not include a guaranteed 13 months AWS and bonuses (if any - co is loss making after all) and other benefits like company car (will likely ask to monetise it as I already have a car), etc. The role is similar to my current position but will also be the deputy regional GM.

The major sticking point is that this American MNC has been registering losses for the past 2 years and the gloomy outlook seems likely to continue from the latest 1Q earnings call held this morning. The annual reports show that the losses are due to reduction in revenues/job volume and asset impairments which the hiring regional GM said so when I met him last week. The whole O&G industry is in the dumps with small signs of improving in the short term but it is worrying that the co continued with write down asset even for this latest FY quarter.

There are obvious risks to join this company compared to my iron rice bowl but the upside seems tempting. This company is not as big as Halliburton or Slumberger but will be more towards the size of McDermott, Saipem, Technip etc.

Would you join this company?

No, I will not. Your pay is good enough.

Originally Posted by SELXM

My current job is a very stable GLC - I am on a lower-than-market monthly basic and getting a constant 17-18 month package for the past few years. This is an iron rice bowl job but the annual package is considered low for my job responsibility when compared to MNCs and civil service.

I am considering to join an American NYSE-listed MNC which will immediately boost my 12 months salary to be 10% more than my current 17-18 month package. This does not include a guaranteed 13 months AWS and bonuses (if any - co is loss making after all) and other benefits like company car (will likely ask to monetise it as I already have a car), etc. The role is similar to my current position but will also be the deputy regional GM.

The major sticking point is that this American MNC has been registering losses for the past 2 years and the gloomy outlook seems likely to continue from the latest 1Q earnings call held this morning. The annual reports show that the losses are due to reduction in revenues/job volume and asset impairments which the hiring regional GM said so when I met him last week. The whole O&G industry is in the dumps with small signs of improving in the short term but it is worrying that the co continued with write down asset even for this latest FY quarter.

There are obvious risks to join this company compared to my iron rice bowl but the upside seems tempting. This company is not as big as Halliburton or Slumberger but will be more towards the size of McDermott, Saipem, Technip etc.

Would you join this company?

O&G industry? Forget about it. Even the big oil co are shedding jobs like mad, you join some tier2/3 company with almost confirm zero bonus and just the aws and get like 10+% increase in total package? This is too low even for normal job hop, much less a hop into a disastrous industry when everyone is fleeing.

The offer is too low. Singapore each jump is normally 20-30%. For a company that has no job security, loss making and in a slump industry, I would ask for at least 40-50% to justify the risk. If it were me and they come back with 10%, I won't even bother to entertain.

Originally Posted by SELXM

My current job is a very stable GLC - I am on a lower-than-market monthly basic and getting a constant 17-18 month package for the past few years. This is an iron rice bowl job but the annual package is considered low for my job responsibility when compared to MNCs and civil service.

I am considering to join an American NYSE-listed MNC which will immediately boost my 12 months salary to be 10% more than my current 17-18 month package. This does not include a guaranteed 13 months AWS and bonuses (if any - co is loss making after all) and other benefits like company car (will likely ask to monetise it as I already have a car), etc. The role is similar to my current position but will also be the deputy regional GM.

The major sticking point is that this American MNC has been registering losses for the past 2 years and the gloomy outlook seems likely to continue from the latest 1Q earnings call held this morning. The annual reports show that the losses are due to reduction in revenues/job volume and asset impairments which the hiring regional GM said so when I met him last week. The whole O&G industry is in the dumps with small signs of improving in the short term but it is worrying that the co continued with write down asset even for this latest FY quarter.

There are obvious risks to join this company compared to my iron rice bowl but the upside seems tempting. This company is not as big as Halliburton or Slumberger but will be more towards the size of McDermott, Saipem, Technip etc.

Would you join this company?

What is your experience & skill? If it is those very specialize that only a few companies in sg will employ then you can consider for career advancement although IMO the offer is not very tempting.

If your skills are the normal kind can apply to many companies and industries, then it really makes no sense IMHO. You say the GM also admit they have low job volumes and no new projects, that's why making losses for many years.

Seems like quite boh liao to join such a high risk company when you can just wait for another company that can make the same offer without all this danger. Under the law if you dont have 3 years service, the company is entitled to terminate you any time without any retrenchment package.

Originally Posted by Unregistered

O&G industry? Forget about it. Even the big oil co are shedding jobs like mad, you join some tier2/3 company with almost confirm zero bonus and just the aws and get like 10+% increase in total package? This is too low even for normal job hop, much less a hop into a disastrous industry when everyone is fleeing.

May I ask something quick. When you say jobs are being shed, does it apply to the O&G industry as a whole? Are the traders affected?

[SELXM]

Originally Posted by Unregistered

O&G industry? Forget about it. Even the big oil co are shedding jobs like mad, you join some tier2/3 company with almost confirm zero bonus and just the aws and get like 10+% increase in total package? This is too low even for normal job hop, much less a hop into a disastrous industry when everyone is fleeing.

Originally Posted by Unregistered

The offer is too low. Singapore each jump is normally 20-30%. For a company that has no job security, loss making and in a slump industry, I would ask for at least 40-50% to justify the risk. If it were me and they come back with 10%, I won't even bother to entertain.

Thanks for the advise. While I agree that 10% may be on the low side for the uncertainty but 40-50% would be unrealistic.. maybe somewhere in between.

Originally Posted by Unregistered

What is your experience & skill? If it is those very specialize that only a few companies in sg will employ then you can consider for career advancement although IMO the offer is not very tempting.

If your skills are the normal kind can apply to many companies and industries, then it really makes no sense IMHO. You say the GM also admit they have low job volumes and no new projects, that's why making losses for many years.

Seems like quite boh liao to join such a high risk company when you can just wait for another company that can make the same offer without all this danger. Under the law if you dont have 3 years service, the company is entitled to terminate you any time without any retrenchment package.

The industry is the offshore oilfield services, more specifically OSVs. Similar local companies are Ezion, Ezra/EMAS, Swissco, CH Offshore, Swiber (yes, Swiber)... all of them combined would be the size of this US company. This industry is an asset play with an oversupply of highly leveraged assets competing for a shrinking pool of jobs. The availability of jobs are tightly linked to world oil prices, which in turn determines the no of capex intensive projects undertaken by the oil majors.

For this role, most similar companies have a small team of 2-3 in this corporate function. A similar person in my role usually reports directly to the CEO/MD and could be considered middle-senior management. Such openings do not come by often as there are few positions in each company.

The pros of the offer is career advancement (this is the no 2 position of the region) and eventually to the regional GM position.

Downside is the uncertainty of this industry but there could be a light at the end of the tunnel with oil prices hopefully set to bottom out?

Originally Posted by SELXM

Thanks for the advise. While I agree that 10% may be on the low side for the uncertainty but 40-50% would be unrealistic.. maybe somewhere in between.



The industry is the offshore oilfield services, more specifically OSVs. Similar local companies are Ezion, Ezra/EMAS, Swissco, CH Offshore, Swiber (yes, Swiber)... all of them combined would be the size of this US company. This industry is an asset play with an oversupply of highly leveraged assets competing for a shrinking pool of jobs. The availability of jobs are tightly linked to world oil prices, which in turn determines the no of capex intensive projects undertaken by the oil majors.

For this role, most similar companies have a small team of 2-3 in this corporate function. A similar person in my role usually reports directly to the CEO/MD and could be considered middle-senior management. Such openings do not come by often as there are few positions in each company.

The pros of the offer is career advancement (this is the no 2 position of the region) and eventually to the regional GM position.

Downside is the uncertainty of this industry but there could be a light at the end of the tunnel with oil prices hopefully set to bottom out?

OSV is among the worst o&g affected by the downturn. Once their project or charter runs out w/o new replacement, 90% chance will chop the entire team.

I think you need to get your priorities right - who you report to is dependent on the org structure and how the company labels the job titles. It does not necessary mean career advancement. Reporting to some regional GM in the region doesn't mean nuts if it doesn't come with the correct pay and job security.

In lean & small companies, it is not unusual for low level people to report to someone high. For e.g. a regional GM type in Exxon would be making $1-2mil, someone 2 levels below maybe $600k. Would such a person be lower than some someone making 400k but reporting directly to the regional GM of another company?

You should not be gambling career decisions based on speculating whether oil prices will bottom out. Nobody knows. If you know, you would be a billionaire by now and not waste time looking for jobs.

My 2c.

OP: How much you make now?

The lowball offer + 2-3 pax team does not sound like #2 senior position in the region of a mnc at all.

Originally Posted by Unregistered

OP: How much you make now?

The lowball offer + 2-3 pax team does not sound like #2 senior position in the region of a mnc at all.

Have to go with above q as well. My brother is a lower level project manager in Seadrill (consider small mnc) already supervising ~10 technical and project support function staff. How can no. 2 senior in the whole region be leading a 2 man team?