Norwegian technology, project development and engineering company Sevan Marine has tightened its loss in the fourth quarter of 2015 when compared to the same period in 2014, by implementing cost slashing measures that will now include further workforce reductions.
The cost cutting programs launched in the first quarter of 2015 had an impact in excess of $4 million for the year ending December 31, 2015. Headcount has been reduced by 30 or over 25 percent in Sevan Marine.
Further cost reduction measures were also taken in 4Q 2015 including the implementation of temporary leave for certain employees, the consolidating of offices in Arendal and the settlement of the CeFront cooperation agreement.
In the company’s 4Q 2015 results report on Wednesday, Sevan Marine said that additional cost reduction measures were being implemented to reduce operating losses and cash burn. These measures include a further 15 to 20% reduction in headcount, voluntary salary cuts by staff and senior management, simplification of the group structure as well as continued stringent cost control.
Sevan Marine’s net loss for the quarter was $8.4 million, versus $15.9 million in 4Q 2014.
The company’s operating revenues increased during the fourth quarter of 2015 amounting to $27.2 million, versus $25.2 million in the same period in 2014.
According to the company’s 4Q report, the Board has communicated an intention to pay a dividend depending upon developments. Given the uncertain market outlook, the Board has decided not to pay an ordinary dividend for 2015, Sevan Marine said. An extraordinary dividend in 2016 may be considered depending upon developments during the year, the company added.
Offshore Energy Today Staff