Global Credit and Collections Management of Halliburton Energy Services, Inc.

Transcription

1 Global Credit and Collections Management of Halliburton Energy Services, Inc. Presented by Kevin A. Chandler Director of Global Credit and Collections

2 Presentation Outline Halliburton Energy Services (HES) Background 2006 Revenue 2006 A/R Balance Organizational Structure Credit Activities Collection Activities Performance Measures Employee Development

3 A Global Enterprise Founded in 1919 Operates in over 120 countries Maintains over 175 locations Employs over 35,000 people 205,000 service jobs performed in million service hours worked in million miles driven in 2006

4 2006 Revenue by Geography & Division Total Revenues by Geography $ B North America $ B (50%) Europe / Africa / Eurasia $ B (21%) Latin America $ B (12%) Middle East / Asia $ B (17%) Total Revenues by Division $ B Digital & Consulting Solutions $.776 B ( 6%) Drilling & Formation Evaluation $ B (25%) Fluid Systems $ B (28%) Production Optimization $ B (41%)

5 31 December 2006 A/R by Geography Region # of A/R Invoices A/R Balance Africa 10,367 (16%) $ M (14%) Asia 5,573 (10%) $ M (10%) Canada 4,232 ( 7%) $ 78.9 M ( 4%) Europe Eurasia 4,068 ( 6%) $ M (12%) Latin America 8,497 (13%) $ M (12%) Middle East 5,072 ( 8%) $ M ( 8%) United States 25,372 (40%) $ M (40%) TOTAL 63,181 $ 1,966.2 M

6 Customer Financial Services Group Structure Director Asia Europe, Africa & Mid East U.S. Systems & Reporting Latin America Canada Australia China 1 Senior CFS Rep Indonesia 3 Senior CFS Rep s Malaysia 1 Senior CFS Rep India Japan (Shared with F&A) Sakhalin Island (Shared with F&A) Thailand (Shared with F&A) Germany Norway Scotland 1 Senior CFS Rep 2 CFS Reps Italy Landmark North Africa Landmark Middle East 1 Senior CFS Rep Landmark Southern Africa Russia Kazakhstan U.S. 2 CFS Region Managers 10 CFS Senior Managers 5 CFS Managers 3 CFS Senior Reps 9 CFS Reps 1 CFS Account Analyst 2 Systems Analysts Landmark South Am. Landmark Mexico 1 Senior CFS Rep 1 CFS Senior Rep 3 CFS Reps

7 Credit Activities Credit Managers assigned to a specific geography ( Local Expertise ) Regional Credit Managers assigned to support Credit Managers ( No One on an Island ) Credit Managers serve all business divisions ( One Stop Shopping ) One credit policy applies to all legal entities and divisions ( Everyone Plays by the Same Rules ) All credit decisions executed through one SAP system globally ( Complete Transparency ) All exposures tracked and managed via one SAP globally ( Nothing Gets Missed ) All CFS personnel assist in the credit management process ( Train, Develop, and Promote from Within )

8 Collection Activities Everyone collects cash from customers ( Generating Cash is Job # 1 ) Each customer is assigned one collector ( Local Expertise and Relationship Building ) Managers assigned to support collectors ( Support and Coaching ) Collectors collect invoices from all business divisions ( Managing the Entire Exposure ) Collection strategies applied on a customer by customer basis ( Targeted Strategies to Drive Increased Collections ) All collection activities executed through one GetPaid globally ( Complete Transparency Where Nothing Gets Missed ) Comprehensive reports of all activities generated weekly ( No Surprises ) Everyone is graded and rewarded upon their team s goals ( Creating a Team Environment )

9 Performance Measures Days Sales Outstanding (DSO) measures the number of days our billed and unbilled / accrued customer trade accounts receivable portfolio is outstanding. Days Receivable Outstanding (DRO) measures the number of days our billed customer trade accounts receivable portfolio is outstanding. DRO is subcomponent of DSO. Average Days Delinquent (ADD) measures the number of days our billed customer trade accounts receivable portfolio is outstanding past its due date. In other words, ADD states how efficient are we at collecting invoices to their stated payment terms. Dollars Aged Over 90 Days Past Due ($ Over 90) measures the dollars of customer trade accounts receivable invoices aged more than 90 days past their respective due dates. Average Days Past Invoice Due Date to Discover a Dispute measures the average number of days past an invoice s due date before a dispute is discovered and turned over for resolution.

10 Employee Development Credit Management Customer Financial Review Customer Information Review Internal Business Risk Market Economic Risk International Issues Risk Contract Risk Risk Mitigation Non-Standard Opportunities Decision Making

11 Employee Development A/R Management Invoice Delivery Support Customer Receivable Collection Disputed Invoice (DART) Process Cash Posting Support Third Party Involvement Lien Process Insolvency or Bankruptcy Process Customer Receivable Restructuring

12 Working Relationships Internal Customers Employee Development External Customers Third Party Entities Tools SAP, GetPaid, FileNet, HalWorld Intranet, Outlook, Excel, Word, PowerPoint, ebusiness, External Data Gathering and Assessing Tools Oil and Gas Industry / Halliburton Company Knowledge Halliburton Corporate Standards Oil and Gas Industry Oil and Gas Service Industry

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