Oilfield services firm Petrofac may reduce overhead and project support costs by at least $125 million this year to mitigate the impact of the COVID-19 pandemic and lower oil prices on its financial performance, the company said Friday.
“We are targeting additional savings to those announced on 6 April, and now expect to reduce overhead and project support costs by at least $125 million in 2020 and by up to $200 million in 2021,” the company said in a statement.
The London-based energy company added that the reversal of the final 2019 dividend payout and a 40% cut in capital spending has maintained an annual cash balance of $145 million.
Petrofac said the majority of 2020 tenders would also be delayed until 2021 as the collapse in oil prices caused clients to review their future investment plans.
By Sibel Morrow