Franco-American oil services firm TechnipFMC Plc said on Wednesday it will cut its planned capital expenditures for 2020 by 30% to $300 million in response to current oil market conditions.
TechnipFMC said it was taking decisive action to address the market conditions and would incorporate its latest assessment of the operating environment and outlook when it provides updated financial guidance in its first quarter earnings on April 22.
The group, created three years ago via the merger of Technip and FMC, said it continues to exhibit solid financial strength and liquidity as its clients, oil companies, shelve projects and slash costs due to the crash in global oil prices.
TechnipFMC said in a statement its cash and cash equivalents totalled $5.2 billion at the end of 2019, of which $2.2 billion was available for company use outside joint ventures.
Liquidity is further supported by a revolving credit facility of $2.5 billion, the statement said.
The company said on March 15 it had put on hold its plans to split into two due to turbulence in financial markets linked to the coronavirus outbreak and the sharp drop in oil prices.
(Reporting by Bate Felix, Editing by Chris Reese and Ed Osmond)