TechnipFMC announced its plans to address market conditions brought on by the low oil price and the COVID-19 pandemic that will see the company cut its CAPEX by 30 per cent.
TechnipFMC said in a statement 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 reducing its 2020 capital expenditures by 30 per cent to $300 million. Secondly it will make US$100+ million in annualised cost reductions for Surface Technologies, which the firms said is in response to the sudden and sharp decline in North American activity.
TechnipFMC said it continues to exhibit solid financial strength and liquidity. Cash and cash equivalents totalled $5.2 billion at the end of 2019, of which $2.2 billion was available for Company use outside joint ventures.
“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 cooperation with its clients to ensure the best project execution possible during this challenging period,” the company said.
The firm added “that 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.”