Petrofac reveals fresh cost-cutting plans

first_imgAccording to Petrofac, contract extensions in EPS, on the other hand, have remained strong with $500 million of new orders secured year to date. COVID-19 has caused significant disruption to Petrofac’s Engineering and Construction (E&C) projects. These actions included reducing overhead and project support costs by at least $100 million in 2020 and by up to $200 million in 2021. In order to mitigate the effects of coronavirus crisis and low oil prices, oilfield services provider Petrofac is taking further action to reduce costs and preserve balance sheet. Tender delays In an update on Friday, the company said it is targeting additional savings to those announced on 6 April, and now expects to reduce overhead and project support costs by at least $125 million in 2020 and by up to $200 million in 2021. “Whilst our bidding pipeline remains healthy and we are well-positioned on several opportunities this year, we are now prudently anticipating that the majority of 2020 tenders will be delayed until 2021”, Petrofac said. Looking ahead, Petrofac noted it remains unclear how long COVID-19 and low oil prices will continue to disrupt business activity and impact business performance. center_img However, Petrofac believes that its healthy order book, liquidity of $1.2 billion, and actions to reduce costs will protect it against near-term headwinds. Petrofac has already announced its decision to reduce its capex by 40 per cent, reduce salaries across the company, and reduce its personnel by about 20 per cent. This is evident in delays to current tenders in E&C, as well as the recent termination of the $1.5 billion Dalma contract. Whilst projects are still progressing, this has inevitably resulted in material delays in construction activity, which will not be recovered in 2020. In addition, the collapse in oil prices has been the catalyst for clients to review their future investment plans. In addition, suspension of the final 2019 dividend payment and a 40 per cent reduction in capital investment has conserved an incremental $145 million of cash flow.last_img read more

Despite breaking ground on D/N tests for India, Sourav Ganguly non-committal on 4 day…

first_imgImage Courtesy: Getty/PTIAdvertisement 9zfq1NBA Finals | Brooklyn Vs91svp9nWingsuit rodeo📽Sindre En6bn3l( IG: @_aubreyfisher @imraino ) a4diWould you ever consider trying this?😱fnhcCan your students do this? 🌚obydcRoller skating! Powered by Firework As the World Test Championship will kick off from 2023, the International Cricket Council(ICC) is already discussing on a reduction of the duration of tests from the current five days to four days. While The England and Wales Cricket Board (ECB) has spoken in favour of the four day tests, there have been a rise of counter arguments, with many preferring the legacy duration of five days. Now, Board of Control for Cricket (BCCI) president Sourav Ganguly has opened up on the matter.Advertisement Image Courtesy: Getty/PTIStarting from the 2023 World Test Championship, ICC is likely to trim down all further test series duration in the next decade, in an attempt to reduce the strain on cricketers they they usually face in a five day cycle.However, Ganguly believes at present, it is still very early to comment anything about the possible shortening of tests.Advertisement “First we will have to see the proposal, let it come and then we will see. It’s too early to say. Can’t comment just like this.” Dada spoke to reporters in an interview at Eden Gardens.Reminding the success of the Day Night test cricket, it too was subjected to criticism at an early stage. However, in the long run, day night tests have increased the inclination towards the game format, which turned out more spectators in test matches. The issue of bad lighting in matches is also gone, with the usage of floodlights during night time.Advertisement Although sounding new, the idea of a four day test has been tried and tested in the past. South Africa and Zimbabwe tried the concept for the first time in the history of the game in 2017.The most recent one took place between England and Ireland last summer. The test ended on day three, but an extension of 30 minutes was allotted on each day, that increased the total overs to be bowled to 98 from the usual 90.The England and Wales Cricket Board has come forward with a support for the idea of four day tests. “We’re definite proponents of the four-day Test concept but cautiously so,” an ECB spokesperson said in a recent interview.“We understand it’s an emotive topic for players, fans and others who have concerns about challenging the heritage of Test cricket,” the spokesperson added.While reducing the complexity of year around schedule of teams and also the workloads on players, the idea of four day tests will also free up around an estimated 40 days in a calendar year.Also read-An early look into the World Test Championship tableSA captain Faf du Plessis against idea of Super Series between Big 3 teams Advertisementlast_img read more