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$100m IN ANNUAL COST REDUCTIONS

TechnipFMC plans 30pc cut in 2020 capex as oil market bites

DUBAI, April 2, 2020

TechnipFMC, a global leader in subsea, onshore/offshore, and surface projects with a major presence in the Middle East region, has announced plans to cut its planned capital expenditure for 2020 by 30 per cent to $300 million in response to current market conditions.
 
This is a reduction of $150 million when compared to the company’s previous full-year guidance , said a statement from the company.
 
TechnipFMC asserted that it remains focused on taking all necessary steps to ensure the health and well-being of its employees, contractors and partners. 
 
Apart from the 30 per cent capex cut, these other decisive actions eing taken in response to the current market environment include:
•Over $100 million in annualised cost reductions for Surface Technologies –
primarily to address the sudden and sharp decline in North American activity.
•Around $30 million in annualised cost reductions to corporate expenses - exit runrate savings to be achieved by year-end, with full recognition in 2021.
 
TechnipFMC continues to exhibit solid financial strength and liquidity. The 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. 
 
The UK-based group continues to leverage its global footprint, information technology infrastructure and diverse and talented workforce to ensure business continuity in the current environment, said the statement. 
 
The company is also working in close cooperation with its clients to ensure the best project execution possible during this challenging period, it added.
 
TechnipFMC said its liquidity is further supported by a revolving credit facility of $2.5 billion. 
 
In response to Covid-19 impacts, the group said it will move the location of its 2020 Annual General Meeting of shareholders to its offices at Dunfermline in Scotland, UK.-TradeArabia News Service



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