TechnipFMC plc has announced that it remains focused on taking all necessary steps to ensure the health and well-being of its employees, contractors and partners, and it is taking decisive actions in response to the current market environment.
These actions include the following:
- 30% reduction in 2020 capital expenditures to US$300 million – a reduction of US$150 million when compared to the Company’s previous full-year guidance.
- US$100+ million in annualised cost reductions for Surface Technologies – primarily to address the sudden and sharp decline in North American activity.
- US$30 million in annualised cost reductions to Corporate expenses – exit run-rate savings to be achieved by year-end, with full recognition in 2021.
TechnipFMC continues to exhibit solid financial strength and liquidity. Cash and cash equivalents totalled US$5.2 billion at the end of 2019, of which US$2.2 billion was available for Company use outside joint ventures. The Company’s liquidity is further supported by a revolving credit facility of US$2.5 billion.
TechnipFMC continues to leverage its global footprint, information technology infrastructure and diverse and talented workforce to ensure business continuity in the current environment. The Company is also working in close co-operation with its clients to ensure the best project execution possible during this challenging period.
The Company 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.
TechnipFMC also announces that, in response to COVID-19 impacts, it will move the location of its 2020 Annual General Meeting of Shareholders (the AGM) to its offices in Dunfermline, UK.
To ensure appropriate social distancing protocols, the Company encourages all shareholders to submit their votes and proxies electronically in advance of the AGM and requests that shareholders not attend the AGM in person.
Read the article online at: https://www.worldpipelines.com/business-news/02042020/technipfmc-actions-to-address-the-current-market/