Dutch subsea and survey specialist Fugro has announced further cost reductions as part of its latest set of quarterly results today.
The company said that it was “ahead of schedule” in terms of its headcount reduction program having reduced 1,050 employees year-to-date. Fugro planned to cut staff levels by 950 for the year, and revealed that it would target an additional 500 employees over the coming quarters.
Fugro also revealed that its fleet reduction is ahead of plan, having reduced its geotechnical fleet from 11 to 7 vessels and subsea fleet by of 10-15% this quarter. On the subsea side, Fugro said it has reduced its fleet by 2 long-term charters, one of them an early termination.
Paul van Riel, CEO of Fugro, commented: “We have made good progress with the implementation of our management agenda: focus on profitability, cash flow and strengthening of the balance sheet. The implementation of the cost reduction and performance improvement measures is progressing ahead of schedule.
“With our clients further reducing their E&P spend, visibility is low. We expect the coming quarters to be difficult with pressure both on activity levels and pricing, and we will continue to manage through the downturn by adjusting our resources and costs in line with activity levels.”
The company posted quarterly revenues of €610.9m ($672m), down 13.2% year-on-year. Looking forward, Fugro said its business backlog for the coming 12 months is down by 21.8% compared to a year ago, and that cost reductions will only partially offset the impact.