SBM Offshore, the world’s largest provider of floating production storage & offloading vessels, has announced plans to cut more jobs.
The company had said in December 2014 it would eliminate 1.200 positions worldwide, but in its quarterly results report last night, the company revealed this number would grow.
Citing continued market downturn and the need and further review of cost structure, SBM Offshore yesterday said the workforce reduction over the period of 2014 and 2015 is now expected to be at least 1.500 positions.
The company’s first quarter revenue fell to $601 million versus $782 million in the year-ago period. This was driven by a decrease in turnkey activity primarily as a result of the delivery of Cidade de Ilhabela and N’Goma FPSO and lack of order intake in 2014.
Bruno Chabas, CEO of SBM Offshore commented: “A continuously challenging macro environment has impacted the turnkey segment as clients postpone investment decisions. The Lease and Operate segment continues to perform, as it is unaffected by oil price fluctuations and generates healthy and growing cash flows.”
In its outlook for the rest of the year, SBM Offshore said the market outlook remains challenging as the company continues to see delays in final investment decisions, and ultimately awards by clients. The company said it maintained its positive medium to long-term outlook as deepwater development remained a secular growth story.
Offshore Energy Today Staff