Oil services company TechnipFMC said on April 22 it would slash the salaries of executives and retainers paid to company directors by 30%, after cutting its dividend by 75% in search of savings to cushion the impact of the novel coronavirus outbreak.
Kinder Morgan also took a non-cash impairment charge of $950 million in the first quarter related to certain oil and gas producing assets in its CO₂ unit.
Results so far bear out that the season will be grim for energy. On April 20, U.S. oilfield services giant Halliburton Co. reported a $1 billion first-quarter loss on charges.
Oilfield firm Baker Hughes Co. reported a $10 billion loss and lower-than-expected revenue in the first quarter on April 22 as an 80% plunge in oil prices crushed demand for services and equipment.
Credit analysts increasingly cite Exxon Mobil’s cash flow challenges as an area of concern.
Baker Hughes said falling customer demand had led it to reduce its view of the long-term prospects for its oilfield services and equipment unit, resulting in a $15 billion goodwill impairment charge.
ProPetro Holding Corp. said on April 9 it will reduce compensation at different levels by up to 20%, the latest oilfield services provider looking to rein in costs to weather a steep drop in oil prices.
Oilfield services provider Schlumberger on March 31 said it will implement widespread salary and job cuts as it grapples with a sharp decline in revenue from the oil price collapse.
U.S. Silica Holdings Inc. on March 24 revealed annualized SG&A cost reductions of approximately $20 million in response to the recent drop in oil prices and the expected decline in drilling and completion activity in North American shale over the coming quarters.