From Via Satellite
RigNet, one of the leading suppliers of connectivity to the energy sector, is diversifying its business to address new verticals. The energy sector has been hit hard by oil prices, which have stayed low due to oversupply, among other factors. Reduced spending by oil and gas operators has cut into RigNet’s profits, causing the company to shed personnel and ultimately to restructure. While energy remains RigNet’s core market, the company is branching out to serve other areas in order to find new sources of revenue.
Steven Pickett, CEO of RigNet, told Via Satellite the company is now looking broadly at a number of different verticals that rely on remote communications services. In particular, RigNet is evaluating markets where it can leverage existing capabilities, or where the technologies needed are not radically different from the energy sector.
“We are assessing these verticals and entering a small number of them in a more focused way. The markets we are focused on include maritime, which is one of the largest initiatives we have focused on the last couple of years, and the mining industry. In addition, we are continuing to explore other verticals. We plan to make some decisions, in the coming quarter, about other verticals we will turn our attention to,” he said. Continue >