FTS International Inc. said March 23 that it is taking several actions in response to unprecedented conditions in the oil market.
“Just over two weeks ago, our business was growing and we had a full frac calendar,” Michael Doss, CEO, said. “However, in response to current conditions, many of our customers have already dropped fleets or will be dropping fleets over the next couple of months. Pressure pumping companies, like FTSI, are also giving price concessions that are expected to significantly reduce margins across the industry. Accordingly, we have initiated aggressive measures to reduce costs and position us for future success.”
“Low oil prices combined with limited, if any, access to capital has ensured that our customers are reacting quicker than ever before,” Doss added. “In return, our response must also be quick and decisive to ensure we adapt to the changing environment. The steps we have taken this week are difficult, but necessary.”
Actions that the company has taken to date include furloughing crews that no longer have scheduled work and related support staff; reducing executive salaries by 25%, on top of a 15% reduction already in place for 2020; rolling furloughs and/or reducing salaries/hourly rates for non-executive SG&A and manufacturing staff; reducing stage bonuses and travel time pay for crews; and suspending bonuses to eligible SG&A staff under the company’s short-term incentive plan, except for the safety component.
“The top priority of FTSI remains the health and safety of our employees, customers and communities in which we perform our services,” Doss said. “We will continue to take every necessary precaution related to COVID-19 as we work with our customers to persevere through this challenging time.”
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