LUXEMBOURG/TORONTO – Subsea 7 is withdrawing the guidance and outlook statements it issued in late February in light of market developments.
The company said its priority was to protect the health and safety of its 12,000 employees, while continuing to deliver projects to its clients.
Although the contract backlog at year-end 2019 was $5.2 billion, including $3.3 billion earmarked for execution in 2020, the coronavirus and lower commodity prices could obstruct the new awards needed to meet prior guidance, the company warned.
In addition, measures being taken globally to contain the virus may impact the company’s ability to execute existing contracts.
However, Subsea 7 has liquidity to withstand these events, with $398 million cash and equivalents, and undrawn banking facilities of $656 million.
Eco (Atlantic) Oil & Gas, the Canadian independent with exploration interests offshore Guyana and Namibia, has curtailed all staff travel and implemented a company-wide work from home policy until government restrictions are lifted.
And in light of lower oil prices the company has undertaken cost-cutting steps that include a termination of non-core services, with the board and management voluntarily taking pay cuts of up to 40%.
Eco (Atlantic) is monitoring its operating budget for 2020 and working with its partners to plan future arrangements. To date, the company said, it had met all its work commitments for 2020 under its the various offshore petroleum agreements, with only minimal costs likely over the remainder of the year.
It remains fully funded for its share of further appraisal and exploration drilling at the Orinduik block offshore Guyana, up to $120 million.