Dallas, Texas 06/30/2015 (Financialstrend) – Key Energy Services, Inc. (NYSE:KEG) found its share prices drop on Monday, from Friday’s prices. The company which has been through rough growth pangs for several years now has been making drastic changes, especially, on June 22.
The Board of KEG has appointed industry veteran Rober Drummond, from Schlumberger as the New President and COO. However, the Chief Executive Officer of KEG will continue to be held by Dick Alario, besides, he will remain chairman of the organization as well.
The news had led to flat trading on Friday, however, the share prices were found to have dipped on Monday.
Drummond’s core experience has been in North American business territories of Schlumberger Limited. This experience is expected to come to him when he helms new growth for KEG. His credentials as member of Society of Petroleum Engineers and Director of the National Ocean Industries Association as well as the Executive Committee, is expected to laud good for KEG in the future.
Global Hunter upgrade in May
In May Key Energy Services, Inc. (NYSE:KEG) was awarded an upgrade by analyst firm Global Hunter. The analyst felt that Key Energy Services had the potential to ‘explode to the upside,’ if investors understand how to ‘deleverage.’ The analyst firm had remarked that if the company can trade up to book value, then shares are likely to double. However, it reiterated that KEG would not be able to show positive earnings, perhaps until 2017. KEG has not shown positive earnings ever since 2012.
Key Energy Services, Inc. (NYSE:KEG) however, is troubled by debt and most analysts predict that the weak market circumstances would bring KEY under additional pressure. Bearish analysts predict, the firm may well seek bankruptcy, if the current industry conditions were to persist into 2016. However, with experienced Drummonds at the helm now, perhaps a new, aggressive growth chapter may open up for KEG soon.