Subsea 7 issued further details of the cost reduction programme, following initial guidance provided on 30 April.

It is envisaged that the overall reduction in headcount would be approximately 3,000 from the global workforce of 12,000, by the end of the second quarter 2021. It is anticipated that two-thirds of the reduction would affect the non-permanent workforce and one-third of the reduction would affect permanent employees. Discussions with employee representatives will take place on a local basis and consultation will start soon.

The active fleet of 32 vessels will be reduced by up to 10 vessels through the non-renewal of chartered tonnage and the stacking of owned assets. It is intended that the reshaping of the fleet would take place over the next 12 months commensurate with the evolution of the Group’s workload.

As previously indicated, these cost reduction measures are expected to deliver approximately $400 million in annualised cash cost savings from the second quarter 2021. In addition, capital expenditures will be reduced to minimal levels in 2021 and 2022.

John Evans, Chief Executive Officer said: “Faced with a significant deterioration in the oil and gas market, we are taking swift and decisive action to address the elements under our control. These measures to reduce our cost base will help preserve cash and protect our balance sheet strength, while maintaining our strong competitive position in core markets.”