Fugro to Cut 600 More Jobs
Fugro, a subsea and survey specialist, plans to reduce its workforce for additional 600 positions in the coming quarters.
Staff number was lower by 1,664 compared to the first quarter 2015, according to the company’s earnings report.
Furthermore, Fugro’s year-on-year revenue declined 23.4% due to lower activity levels and pricing pressure.
The company’s subsea fleet was reduced by one long term charter in the first quarter 2016.
In addition, the second half of the year could see two more geotechnical vessels stacked with the possibility of additional reductions of the survey fleet unless new work is identified, Fugro informed.
Paul van Riel, CEO said: “The exceptionally deep downturn in oil and gas services has by now entered its third year. We had already guided for a very difficult 2016, and during the past months our clients’ exploration and production budgets again declined significantly. We are therefore anticipating strong revenue decline and severe margin pressure. We are continuing to adjust our cost base and capacity to market reality. Generating positive cash flow is our number one priority.”