Subsea 7 provided additionally information of the price decrease program, complying with first assistance supplied on 30 April.
It is imagined that the total decrease in head count would certainly be roughly 3,000 from the international labor force of 12,000, by the end of the 2nd quarter 2021. It is expected that two-thirds of the decrease would certainly impact the non-permanent labor force as well as one-third of the decrease would certainly impact irreversible staff members. Discussions with worker agents will certainly happen on a neighborhood basis as well as examination will certainly begin quickly.
The energetic fleet of 32 vessels will certainly be minimized by approximately 10 vessels with the non-renewal of legal tonnage as well as the piling of had possessions. It is meant that the improving of the fleet would certainly happen over the following year appropriate with the development of the Group’s work.
Image Credits: subsea7.com
As formerly showed, these price decrease steps are anticipated to supply roughly $400 million in annualised cash money price financial savings from the 2nd quarter 2021. In enhancement, capital investment will certainly be minimized to marginal degrees in 2021 as well as 2022.
John Evans, Chief Executive Officer stated: “Faced with a significant deterioration in the oil and gas market, we are taking swift and decisive action to address the elements under our control. These measures to reduce our cost base will help preserve cash and protect our balance sheet strength, while maintaining our strong competitive position in core markets.”
Reference: subsea7.com
