Oil services firm TechnipFMC has announced that it will cut its planned capital expenditures (capex) by 30% to $300m for 2020.

The latest move is in response to an unprecedented slump in oil prices and the global economy due to the coronavirus pandemic.

TechnipFMC noted that it will target more than $100m in annualised cost reductions for the Surface Technologies unit, primarily to address the sudden decline in North American activity, and $30m in annualised cost reductions to corporate expenses.

TechnipFMC said in a press statement: “TechnipFMC continues to exhibit solid financial strength and liquidity. Cash and cash equivalents totaled $5.2bn at the end of 2019, of which $2.2bn was available for company use outside joint ventures.

“The company’s liquidity is further supported by a revolving credit facility of $2.5bn.”

Last month, the company noted that it deferred its plans to split business operations into two separate entities. It had said that the current market environment led to its decision to put separation on hold.

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By GlobalData

The oilfield services provider was to spin off into TechnipFMC (the remaining company) and Technip Energies (the spun-off company).

In July last year, TechnipFMC secured a contract to provide engineering, procurement, and construction (EPC) services for Novatek’s planned Arctic liquefied natural gas (LNG) 2 project in West Siberia, Russia.