TechnipFMC Cuts Capex 30 Percent
TechnipFMC reported Wednesday afternoon that it has lowered its 2020 capital expenditures by 30 percent to $300 million in response to current market conditions.
The company, which recently put on hold it plan to split into two firms, noted the it is also making more than $100 million in annualized cost reductions to its Surface Technologies unit given the “sudden and sharp decline in North American activity.” Surface Technologies caters to the drilling, completion, production, pressure control, and midstream and downstream transportation markets, TechnipFMC’s website states.
Also on Wednesday, TechnipFMC stated that it will cut it corporate expenses by $30 million on an annualized basis. The firm added that it will achieve the cost savings by the end of this year.
“TechnipFMC continues to exhibit solid financial strength and liquidity,” the company noted in a written statement emailed to Rigzone. “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.”
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