TechnipFMC Cuts 2020 Capex by 30%

UK-registered TechnipFMC will cut its 2020 capital expenditure plan by 30% to $300mn, it said April 1.

In response to the current market environment, the company will also go in for more than $100mn in annualised cost reductions for surface technologies, primarily to address the sharp decline in North American activity. It will also opt for $30mn in annualised cost reductions to corporate expenses.

“TechnipFMC continues to exhibit solid financial strength and liquidity. Cash and cash equivalents totalled $5.2bn at the end of 2019, of which $2.2bn was available for company use outside joint ventures. The company’s liquidity is further supported by a revolving credit facility of $2.5bn,” it said.

Last month, the company deferred plans to separate into two independent and publicly traded companies due to uncertain market conditions linked to Covid-19 outbreak. The decision to split was announced in August last year, three years after the merger of Technip and FMC Technologies, which established TechnipFMC as the only fully-integrated subsea provider.