Challenge
Our client is a multinational energy corporation with operations in more than 180 countries. The company is involved in virtually every aspect of the energy industry, from oil & gas exploration and production to power generation. To improve efficiencies and generate capital to fuel its core business, the company sought an expert partner to manage and sell its wide range of surplus assets including drilling equipment, oil rigs, and office furniture. The client needed a partner with the global reach, energy industry experience, and asset management best practices to effectively handle its surplus.
For nearly 15 years, Liquidity Services has partnered with the client to maximize value for its surplus assets. With nearly 3 million buyers of surplus worldwide, operations in more than 50 countries, over $1 billion in total energy sales, and a dedicated marketplace for energy surplus, we provide the scale and expertise our client desires.
Solution
Liquidity Services manages virtually every aspect of the client’s surplus program. We begin by assessing client surplus to determine its value and sales potential. As appropriate, we facilitate asset redeployment to other client sites around the world. Then, we create “lot listings” providing prospective buyers with information – such as detailed descriptions and photos – that they need to make purchasing decisions. Liquidity Services sells the client’s surplus via both online auction and private treaty sale methods to maximize recovery. We also supervise buyer asset inspections and ensure that buyers and contractors remove assets safely and compliantly.
Embedding personnel at client sites enables us to provide a consistently high level of service. At each major site across the client’s upstream, midstream, and downstream divisions, we’ve stationed a dedicated team member with energy industry expertise to ensure that our client’s surplus program operates as effectively as possible.
Results
In nearly 15 years of partnership, Liquidity Services has executed thousands of surplus asset sales in 14 countries spanning six continents achieving over $70 million in recovery for the client. Our dedicated service, industry and asset expertise, and proven management and sales processes help our client find value in its surplus energy assets. We continue to expand and enhance our partnership with the client as new needs arise. In the near future, we plan to pilot a new scrap management program for the client across several North American sites.