Oil States International (OIS) risk factors, FY2024 10-K

Business and Operating Risks

1. 01We might be unable to compete successfully with other companies in our industry
2. 02Consolidation of our customers and competitors may impact our results of operations
3. 03Disruption of our supply chain could adversely impact our ability to manufacture, transport and sell our products
4. 04We might be unable to employ and retain a sufficient number of key personnel
5. 05If we do not develop new competitive technologies and products, our business and revenues may be adversely affected
6. 06Our business, results of operations and financial condition could be adversely affected by security threats, including cybersecurity threats and other disruptions
7. 07We depend on several significant customers in each of our business segments, and the loss of one or more such customers or the inability of one or more such customers to meet their obligations to us, could adversely affect our results of operations
8. 08The ongoing military actions in Europe and the Middle East could adversely affect our business, financial condition and results of operations
9. 09Climate events could adversely impact our operations or those of our customers or suppliers
10. 10the Gulf Coast. As a result of these seasonal differences, full year results are not likely to be a direct multiple of any particular quarter or combination of quarters
11. 11Our inability to control the inherent risks of identifying and integrating businesses that we have or may acquire, including any related increases in debt or issuances of equity securities, could adversely affect our operations

Financial Risks

1. 12We may be adversely affected by the effects of inflation and increases in tariffs on goods we import
2. 13We may be unable to access the capital and credit markets or borrow on affordable terms to obtain additional capital that we may require
3. 14Backlog in our Offshore Manufactured Products segment is subject to unexpected adjustments and cancellations and, therefore, has limitations as an indicator of our future revenues and earnings
4. 15We may assume contractual risks in developing, manufacturing and delivering products in our Offshore Manufactured Products segment
5. 16These variations and the risks inherent in our projects may result in reduced profitability or losses on projects. Depending on the size of a project, variations from estimated contract performance could have a material adverse impact on our operating results
6. 17Exchange rate fluctuations could adversely affect our U.S. reported results of operations and financial position
7. 18Given the cyclical nature of our business, a severe prolonged downturn could negatively affect the value of our goodwill and other intangible assets

Legal or Regulatory Risks

1. 19We do business in international jurisdictions which exposes us to unique risks
2. 20Explosive incidents arising out of dangerous materials used in our business could disrupt operations and result in bodily injuries and property damages, which occurrences could have a material adverse effect our business, results of operations and financial conditions
3. 21We may not have adequate insurance for potential liabilities and our insurance may not cover certain liabilities, including litigation risks
4. 22We might be unable to protect our intellectual property rights and we may be subject to litigation if another party claims that we have infringed upon its intellectual property rights
5. 23We are subject to numerous environmental laws and regulations that may expose us to significant costs and liabilities
6. 24An accidental release of pollutants into the environment may cause us to incur significant costs and liabilities
7. 25We could incur significant costs in complying with stringent occupational health and safety requirements
8. 26Our and our customers’ operations are subject to a series of risks arising out of the threat of climate change that could result in increased operating costs, limit the areas in which oil and natural gas production may occur, and reduce demand for the products and services we provide
9. 27Increasing attention to ESG matters may impact our business
10. 28The Inflation Reduction Act of 2022 could accelerate the transition to a low carbon economy and could impose new costs on our customers’ operations
11. 29Changes to applicable tax laws and regulations may result in our incurring additional income tax liabilities, which could have a material adverse effect on our business, results of operations and financial condition