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Petrofac scraps 2019 final dividend; reduces headcount by 20%

By BFN News | 07:19 AM | Monday 06 April, 2020


Oil services company Petrofac said it had scrapped its 2019 final dividend as part of cost saving measures designed to help it weather the Covid-19 crisis. Petrofac had planned to pay a dividend of 25.3c per share. The company said it had also cut planned capital expenditure by 40% and was reducing overhead and project support costs by at least $100m in 2020 and by up to $200m in 2021. 'We have a resilient business model, strong competitive position and a differentiated in-country value proposition that is highly valued by our clients,' chief executive Ayman Asfari said. 'Nevertheless, we are taking swift, decisive action in response to the Covid-19 pandemic and lower oil prices to reduce costs, retain our competitiveness and preserve the strength of our balance sheet.' Petrofac said its staff, including senior management, had taken salary cuts of 10-15%. The company's headcount had been reduced by around 20% and non-staff overhead costs had been cut by up to 25%. As at 2 April, the company said it had liquidity of $1.1bn, following the planned repayment of a $75m facility in February. The company also suspended its previous revenue and margin guidance. Story provided by StockMarketWire.com

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