Fugro has enacted restrictions and additional appropriate measures to reduce the impact of the COVID-19 pandemic and the low oil price environment, the company said on April 6.

The company is implementing a program to significantly reduce costs and capital expenditure, with the aim of realizing cash savings. This includes minimizing the hire of short-term charters, implementing a hiring and salary freeze and measures to reduce our workforce. These are painful measures that are necessary as a result of the dual impact of the COVID-19 pandemic and the low oil price environment, the company said. Furthermore, Fugro is assessing all available possibilities for government support to bridge this difficult period. Current liquidity is good with over EUR 400 million (US$431 million) available in cash and committed facilities.

The company has also put restrictions in place regarding non-essential travel and international travel has almost come to a standstill. For those working at operating sites, the company has put additional health and safety measures in place. Offshore work is generally subject to quarantine prior to mobilization. Fugro is reaching out to its clients and partners on a regular basis in order to understand their plans, challenges and measures, and is available to support them where possible.

The company noted it is impossible to forecast the magnitude and duration of the impact of the virus and oil price development given the limited visibility on how this global crisis will unfold. Therefore, Fugro withdraws its earlier guidance for 2020 and will provide further information on 30 April, with the publication of its first quarter trading update.