TechnipFMC plc (NYSE: FTI) (Paris: FTI) said Wednesday 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.
The company said actions include the following:
- 30% reduction in 2020 capital expenditures to $300 million – a reduction of $150 million when compared to the Company’s previous full-year guidance.
- $100+ million in annualized cost reductions for Surface Technologies – primarily to address the sudden and sharp decline in North American activity.
- $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 said it continues to exhibit solid financial strength and liquidity. 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 has been awarded contracts by ExxonMobil affiliate Esso Exploration and Production Guyana Ltd. for the engineering of the subsea systems for the Liza Phase 1 and 2 Development projects in the South American country of Guyana.