India’s Reliance Industries will cut salaries of executives in the oil and gas division as a result of the downturn caused by the Covid-19 pandemic. According to a Reuters report, employees earning more than $20,000 a year will face a 10% salary cut. For senior executives, the annual salary will be trimmed by 30% to 50%. The company also reported a 39% drop in its first quarter profits.
Royal Dutch Shell has slashed its dividend for the first time since World War II. The company reported a net income of $2.9bn in its results to March, a drop of nearly 46%. The company also announced plans to reduce oil and gas output by nearly 25% due to the current market conditions.
Swedish oil firm Lundin Energy has announced it will further trim its expenses to mitigate the economic impact of Covid-19. The company will cut its 2020 spending by $300m, significantly more than the previously announced $170m. However, it increased its 2020 production guidance to 160,000-170,000 barrels of oil equivalent per day due to increase in production at Sverdrup field.
Subsea 7 has initiated a process to resize its business as the number of new oil and gas contracts stays low. The company aims to remove around $400m in annualised cash costs by the second quarter of next year. Subsea 7 detailed its response to the pandemic and said that appropriate action was taken to protect its workforce.