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Subsea 7 — Management Reports 2016
Jun 22, 2016
6244_iss_2016-06-22_fdc3bce1-d157-4ebd-8106-9ee8058b859b.html
Management Reports
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Subsea 7 announces resizing and cost reduction measures
Subsea 7 announces resizing and cost reduction measures
Luxembourg - 22 June 2016 - Subsea 7 S.A. (Oslo Børs:
SUBC, ADR: SUBCY) (the Group) announced that in view
of continued difficult business and economic
conditions in the oil and gas market, a second phase
of global resizing and cost reduction measures will
begin in 2016.
The Group plans to resize its global workforce to
approximately 8,000 by early 2017, down from the
current level of 9,200. Consultation with employees
and employee representatives will take place on a
local basis and consultation processes have begun in
Norway and the UK.
Subsea 7's fleet of active vessels will be managed
commensurate with the projected workload, while
retaining capability and maintaining a global
presence. Up to five vessels are scheduled to leave
the current active fleet by early 2017, based on
stacking owned vessels and returning chartered vessels
when existing contracts expire.
These cost reduction and resizing measures, together
with those already initiated since the start of the
year, are expected to deliver approximately USD 350
million in annualised cost savings. The charge related
to the resizing will be recognised in 2016 and is
expected to be less than USD 100 million.
With effect from 1 July 2016, the Group will change
the structure of its organisation. The new
organisational and reporting segments will comprise:
- SURF and Conventional,
- i-Tech Services and
- Corporate (including Renewables and Heavy-
lift).
This will replace the 'Southern Hemisphere and Global
Projects' and 'Northern Hemisphere and Life of Field'
Business Units and Corporate segment previously
reported.
Under the new organisational structure John Evans,
Chief Operating Officer, and Øyvind Mikaelsen,
appointed Executive Vice President - Commercial, will
report to Jean Cahuzac, Chief Executive Officer. Steve
Wisely will be appointed Senior Vice President i-Tech
Services, reporting to John Evans.
Jean Cahuzac, Chief Executive Officer, said: "Our new
organisational structure reflects our focus on
commercial and long-term strategic priorities as we
adapt to the present low levels of activity and drive
more efficient ways of working with our clients. The
reduction in the size of our workforce is a necessary
step to maintain our competitiveness and protect our
core offering through the oil price cycle.
"We remain confident in the long-term future for
deepwater oil and gas production. We are committed to
retaining our core capabilities and developing our
leading market position through a strategy focused on
differentiation delivered by our people, assets and
technology."
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Subsea 7 S.A. is a leading global contractor in seabed-
to-surface engineering, construction and services to
the offshore energy industry. We provide technical
solutions to enable the delivery of complex projects
in all water depths and challenging environments.
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Contact for investment community enquiries:
Isabel Green
Investor Relations Director
Tel +44 (0)20 8210 5568
www.subsea7.com
Contact for media enquiries:
Tel: +44 (0) 1224 527894 / 527895
The full release is available on www.subsea7.com