TechnipFMC plc today announced that it remains focused on taking all necessary steps to ensure the health and well-being of its employees, contractors and partners, and it is taking decisive actions in response to the current market environment.
These actions include the following:
- 30% reduction in 2020 capital expenditures to $300 million – a reduction of $150 million when compared to the Company’s previous full-year guidance.
- $100+ million in annualized cost reductions for Surface Technologies – primarily to address the sudden and sharp decline in North American activity.
- $30 million in annualized cost reductions to Corporate expenses – exit run-rate savings to be achieved by year-end, with full recognition in 2021.
TechnipFMC continues to exhibit solid financial strength and liquidity. 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. Additional details regarding the Company’s liquidity are provided in the exhibits and an accompanying presentation which can be found on our website at www.TechnipFMC.com.
TechnipFMC continues to leverage its global footprint, information technology infrastructure and diverse and talented workforce to ensure business continuity in the current environment. The Company is also working in close cooperation with its clients to ensure the best project execution possible during this challenging period.
The Company will incorporate its latest assessment of the operating environment and market outlook when it provides updated financial guidance in its first quarter 2020 earnings release.
TechnipFMC also announces that, in response to COVID-19 impacts, it will move the location of its 2020 Annual General Meeting of Shareholders (the “AGM”) to its offices at:
Pitreavie Business Park
Dunfermline KY11 8UD
All other details of the meeting remain unchanged, including the time of 10:00 a.m., London time, on Friday, April 24, 2020. Given the current environment, the meeting will focus on governance requirements and will not include management presentations or a Q&A session. To ensure appropriate social distancing protocols, the Company encourages all shareholders to submit their votes and proxies electronically in advance of the AGM and requests that shareholders not attend the AGM in person.