On Wednesday, oil services firm TechnipFMC Plc. said that it would cut its planned capital expenditures (CapEx) for this year by 30% to USD300 million in reaction to the current oil market development.
The company said that on the update of the financial guidance of its first-quarter earnings on April 22, it would incorporate its latest assessment of the operating environment and outlook.
TechnipFMC’s cash and cash equivalent by the end of 2019 was totaled USD5.2 billion. USD2.2 billion was available for allocations outside joint ventures. Liquidity is also supported by a revolving credit facility of $2.5 billion.
Three years ago, the group was created by the merger of Technip and FMC. It has been performing solid financial strength and liquidity as oil companies clients have shelved projects and curb costs due to the crash in global oil prices.
On March 15, the company said it would postpone its plan to split into two due to the current market vulnerability.
