On the one hand, it’s easy to be upset at a government seizure aimed neither at a betterment of the public interest nor a crime. This seizure appears to have been simply sidestepping the bill. (In businessjargon, reporting a “reduction of the net realizable value of accounts receivable” means “they’re not going to pay us.”) On the other hand, it’s not like this is the first time Venezuela has simply taken stuff from oil service companies. So this was a known risk.
Protip: if the 10-Q indicates the board is going to send durable assets to Venezuela, sell the stock.
I’m wondering how long before companies just stop send equipment to Venezuela? I’m baffled why anyone still thinks it’s a good idea to even do business with them? Even if Hugo is pushing daisies, his cronies still run things.Report
I remember reading an article several years ago in which BP or another oil company basically said, “We know the risk, but the potential return is too great to pass it up.”Report
Next up, nationalization of those Twitter Fascists*
*yes, “Fascists.”really.Report
If it was me, that equipment would have an accident, and I’d get out dodge quickly.Report