TechnipFMC responds to market challenges with plans to cut capex by 30 pct
- Business & Finance
Oilfield services company TechnipFMC is taking a set of actions in response to the current market environment, including a 30% reduction in capex.
These actions include a 30% reduction in 2020 capital expenditures to $300 million – a reduction of $150 million when compared to the company’s previous full-year guidance.
TechnipFMC’s actions also include $100+ million in annualized cost reductions for Surface Technologies – primarily to address the sudden and sharp decline in North American activity.
Also, the company’s actions include $30 million in annualized cost reductions to corporate expenses – exit run-rate savings to be achieved by year-end, with full recognition in 2021.
TechnipFMC’s cash and cash equivalents totaled $5.2 billion at the end of 2019, of which $2.2 billion was available for company use outside joint ventures. The company’s liquidity is further supported by a revolving credit facility of $2.5 billion.
TechnipFMC noted it continues to leverage its global footprint, information technology infrastructure, and diverse workforce to ensure business continuity in the current environment.
The company said it will incorporate its latest assessment of the operating environment and market outlook when it provides updated financial guidance in its first quarter 2020 earnings release.
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