These actions include the following:
- 30% reduction in 2020 CAPEX 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's 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.
The company will incorporate its latest assessment of the operating environment and market outlook when it provides updated financial guidance in its 1Q20 earnings release.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/02042020/technipfmc-reduces-2020-capex/