The Chief Executive Officer (CEO) of Siemens, Joe Kaeser, tried to calm concerns regarding the slide in prices, which might hurt an oil and gas industry that the group has disbursed billions of euros. Company shares dropped 1.8% at 92.41 euros.
In September, the CEO spent nearly 7.6 billion US dollars in purchasing Dresser-Rand, a US-based oilfield equipment maker, spending that much so as to beef up Siemen’s presence within the shale oil and gas business in the United States.
On Tuesday, during an investor conference, Kaeser said, the business may be affected if oil prices continue to go down, but falling prices should also augment demands for high-margin services because customers seek to reduce costs.
Kaeser also added that he’s not considering to pull out the deal on Dresser-Rand. This was Siemen’s biggest deal since its purchase of the Dade Behring way back 2007.
Siemens, the Germany-based engineering group have products ranging from gas turbines to industrial automation software, and high-speed rains, disclosed a company overhaul in May this year. It will give more attention to high-margin services as well as help in making ground on more gainful rivals like General Electric of the US and ABB of Switzerland.