US offshore vessel operator Seacor Marine Holdings has announced a significant cost reduction initiative with its second quarter results.
The company says the cuts are aimed at “better aligning its operating expenses with its view of current and prospective market conditions”. As well as a reduction in its workforce, the company is also reorganising its management structure and closing/consolidating certain facilities in the US Gulf of Mexico, Middle East and Europe.
The exact nature of the changes were not revealed, but Seacor says that the initiative will see it save around $8m annually.
Seacor reported a 6% increase in revenues for the second quarter of 2019, as compared with the second quarter 2018, but still posted a net loss of $28.4m and operating loss of $16.5m.
John Gellert, CEO of Seacor Marine, commented: “Our fleet continued to experience an upward trend in utilization and dayrates, reflecting consistent improvement for assets since the offshore cycle trough in the first quarter of 2017. Activity levels in the U.S. Gulf of Mexico remain tepid as customer demand is highly sensitive to oil and gas prices. Tendering activity, especially in international markets served by our asset portfolio, points to a continuing recovery. Unfortunately, the pace of the recovery is slower than we had hoped, leading us to implement our aggressive cost-cutting initiative.”