TechnipFMC has issued its action plan for containing costs in the current environment.
The company plans a 30% reduction in its 2020 capex to $300 million (around $150 million lower than its previous full-year guidance).
It has also identified $100+ million in annual cost reductions for its Surface Technologies business, mainly to address the sudden and sharp decline in North American activity; and $30 million in annual reductions to corporate expenses.
The company stressed it has financial strength and liquidity, with total cash/cash equivalents of $5.2 billion at the end of 2019: of this, $2.2 billion was available for use outside joint ventures.
In addition, the company can access a revolving credit facility of $2.5 billion.
Source: offshore
