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.
The Franco-American firm, whose clients include major companies in the oil and gas sector, said it had increased its cost savings target to more than $350 million this year from the $130 million it announced on April 1.
It lowered executive compensation for the year, cutting the salary of its chairman and CEO by 30%. It reduced the board of directors’ retainers by 30% and its executive leadership team’s salaries by 20%.
“Over the last two months, much about the world has changed, and we are taking swift and decisive actions in response to the market environment,” Doug Pferdehirt, TechnipFMC chairman and CEO, said in a statement.
The company said on April 21 it would pay $0.13 per share as a dividend this year instead of every quarter, due to the sharp decline in commodity pricing and the impact of COVID-19, the respiratory disease caused by the novel coronavirus.
The company said revenue in the first three months of the year was at $3.13 billion, up 7.5% from the same period a year ago, while the net loss was at $3.256 billion, versus a year-ago net profit of $20.9 million.
After-tax charges of 3.2 billion in the latest quarter included non-cash impairment and other charges totaling $3.15 billion for goodwill and other assets in the subsea and surface technologies segments.
Cash flow from operations in the quarter was $27.9 million.
In its subsea business, TechnipFMC said the global COVID-19 pandemic created headwinds to both revenue and profit in the quarter.
“Project and service disruptions varied, and in some instances, the impacts delayed revenue recognition to future periods,” it said.
The group, created three years ago via the merger of Technip and FMC after the oil price crash of 2015, had been planning to separate its engineering and construction activities from its upstream oil services business in the first half of this year, but suspended that due to the market turmoil.
Major oil producers with operations around the world have cut their 2020 capital spending by more than 26%, or $60.5 billion, data compiled by Reuters showed, following a slump in crude prices.
Technip said it had a backlog of $22 billion, and $5.6 billion in cash and liquidity.
Recommended Reading
Andium’s Thermal Methane Tech Takes Oilfield from Dark Age to Golden Future
2024-11-12 - Andium Founder and CEO Jory Schwach took the oilfield out of the dark ages of using carbon paper to monitor tank levels with his AI thermal camera. Now he foresees more growth after completing the company’s latest funding round.
Trump Prepares Wide-Ranging Plans to Boost Gas Exports, Oil Drilling
2024-11-26 - Sources say that Trump will lift Biden's pause on LNG export licenses, expedite drilling permits on federal land and boots auctions of offshore drilling leases.
EQT’s Rice: ‘Wake Up’ to Anti-Energy Movement
2024-11-08 - In the face of growing opposition to fossil fuels and energy infrastructure, EQT CEO Toby Rice pulled out a rallying cry at Hart Energy’s DUG Appalachia conference: “Wake up!”
Buoyed by Oil and Gas, Trump Poised to Retake the White House
2024-11-06 - President Donald Trump penetrated the blue wall for a second time, taking Pennsylvania’s crucial 19 electoral votes in a nail-biter on election night.
FTC Bars Hess CEO From Chevron Board Seat as Condition of Deal, Say Sources
2024-09-26 - U.S. antitrust regulators will bar Hess Corp. CEO John Hess from taking a board seat as a condition of its go-ahead of oil producer Chevron Corp.'s $53 billion purchase of Hess.