Offshore drilling firm Maersk Drilling has determined to take one other swing with the job axe and lay off much more employees.

Maersk Drilling stated on Thursday that the brand new
wave of layoffs, in addition to a revision of its monetary steerage for 2020, was needed
resulting from oil and fuel corporations’ funds cuts, delays, and cancellations in
offshore drilling tenders.

The firm already acknowledged again in April that it could lay off round 250-300 individuals in its North Sea crew pool after it determined to stack a lot of its rigs to adapt to the altering market atmosphere attributable to COVID-19 and low oil costs.

This time round, the Danish firm stated
that the brand new layoffs would largely affect onshore staff as the necessity for
onshore help was anticipated to even be adversely impacted by the diminished
offshore exercise.

Maersk Drilling added that it could cut back
its onshore group within the Danish headquarters and places of work globally and
that steps had been taken to provoke consultations with worker representatives
and commerce unions the place such consultations are required regionally.

This course of would likely result in Maersk
Drilling shedding between 150 and 170 onshore redundancies globally.

Maersk Drilling CEO Jorn Madsen stated: “With the outbreak of COVID-19 and the decrease oil costs we face an unprecedented actuality with vital implications for our enterprise.

Our ambition is to stay a number one firm in our trade, and with a view to safeguard that place, we have to adapt our price construction to the present enterprise atmosphere.

This implies that we have to take steps to cut back the workforce, which is unlucky, not least within the gentle of the nice efforts by our competent and devoted workers, additionally over the previous vital months”.

This choice by Maersk Drilling comes solely a day after Maersk Supply Services Maersk determined to cut back its onshore group as a result of similar difficult market state of affairs.

Maersk Supply stated on Wednesday that it could
cut back its onshore prices by 30 per cent and minimize some 55 individuals globally, with
the bulk being within the headquarters in Lyngby, Denmark.

Revised steerage

Maersk Drilling stated revised its
profitability steerage for 2020 in March for EBITDA earlier than particular objects to $325-375
million, nevertheless, one other revision was made on Thursday.

The firm emphasised the truth that oil and
fuel corporations introduced additional reductions in spending budgets and much more new
initiatives sanctions and ongoing tenders have been postponed or cancelled since
March. Also, sure present contracts had been renegotiated, suspended, or
terminated.

As a consequence, Maersk Drilling re-assessed and
revised its steerage for 2020 for EBITDA earlier than particular objects to $250-300 million.
The 2020 capex steerage is revised to round $150 million from the earlier $150-200
million mark.

The firm acknowledged that the revised steerage
mirrored anticipated changes to the present contracts primarily based on present
buyer dialogues, no extra contracts with monetary affect in 2020, and
COVID-19 associated prices.

The terminations talked about by Maersk regard the early termination discover for the Maersk Venturer drillship by Tullow Oil in March in addition to Shell and Aker BP’s termination notices for the Mærsk Developer and Maersk Reacher.

The put up Maersk Drilling in new spherical of layoffs appeared first on Offshore Energy.

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