- 30% reduction in 2020 capital expenditures to
$300 million 鈥� a reduction of$150 million when compared to the Company鈥檚 previous full-year guidance.
- $100+ million in annualized cost reductions for Surface Technologies 鈥� primarily to address the sudden and sharp decline in North American activity.
$30 million in annualized cost reductions to Corporate expenses 鈥� exit run-rate savings to be achieved by year-end, with full recognition in 2021.
The Company will incorporate its latest assessment of the operating environment and market outlook when it provides updated financial guidance in its first quarter 2020 earnings release.
Dunfermline KY11 8UD
All other details of the meeting remain unchanged, including the time of
| CASH AND CASH EQUIVALENTS | ||
| (In billions, unaudited) | ||
| 听 | 听 | 听 |
| 听 | 听 | |
| 听 | 听 |
2019 |
| Held by Joint Ventures - Yamal |
听$听听听听听听听听听听听听听听听 1.8 |
|
| Held by Joint Ventures - Other |
1.2 |
|
| Operating cash and cash equivalents |
2.2 |
|
| Total cash and cash equivalents |
听$听听听听听听听听听听听听听听听 5.2 |
|
| 听 | 听 | 听 |
| 听 | 听 | 听 |
| 听 | 听 | Exhibit 2 |
| LIQUIDITY | ||
| (In billions, unaudited) | ||
| 听 | 听 | 听 |
| 听 | 听 | |
| 听 | 听 |
2019 |
| 听 | 听 | 听 |
| Cash and cash equivalents |
听$听听听听听听听听听听听听听听听 5.2 |
|
| Revolving credit facility* | 听 |
2.5 |
| Total liquidity |
7.7 |
|
| 听 | 听 | 听 |
| Less: Commercial paper |
2.0 |
|
| Liquidity, net of commercial paper |
听$听听听听听听听听听听听听听听听 5.7 |
|
| 听 | 听 | 听 |
| *Our available capacity under our revolving credit facility is reduced by any outstanding commercial paper | ||
Important Information for Investors and Securityholders
Forward-looking statements
This communication contains 鈥渇orward-looking statements鈥� as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Words such as 鈥済uidance,鈥� 鈥渃onfident,鈥� 鈥渂elieve,鈥� 鈥渆xpect,鈥� 鈥渁nticipate,鈥� 鈥減lan,鈥� 鈥渋ntend,鈥� 鈥渇oresee,鈥� 鈥渟hould,鈥� 鈥渨ould,鈥� 鈥渃ould,鈥� 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥渓ikely,鈥� 鈥減redicated,鈥� 鈥渆stimate,鈥� 鈥渙utlook鈥� and similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. Such forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections, including the following known material factors:
- risks associated with disease outbreaks and changes in, and the administration of, treaties, laws, and regulations, including in response to public health issues;
- risks associated with our ability to consummate our proposed separation and spin-off;
- unanticipated changes relating to competitive factors in our industry;
- demand for our products and services, which is affected by changes in the price of, and demand for, crude oil and natural gas in domestic and international markets;
- our ability to develop and implement new technologies and services, as well as our ability to protect and maintain critical intellectual property assets;
- potential liabilities arising out of the installation or use of our products;
- cost overruns related to our fixed price contracts or capital asset construction projects that may affect revenues;
- our ability to timely deliver our backlog and its effect on our future sales, profitability, and our relationships with our customers;
- our reliance on subcontractors, suppliers and joint venture partners in the performance of our contracts;
- our ability to hire and retain key personnel;
- piracy risks for our maritime employees and assets;
- the potential impacts of seasonal and weather conditions;
- the cumulative loss of major contracts or alliances;
U.S. and international laws and regulations, including existing or future environmental regulations, that may increase our costs, limit the demand for our products and services or restrict our operations;- disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business;
- risks associated with
The Depository Trust Company and Euroclear for clearance services for shares traded on the NYSE and Euronext Paris, respectively; - the United Kingdom鈥檚 withdrawal from the
European Union ; risks associated with being an English public limited company, including the need for 鈥渄istributable profits鈥�, shareholder approval of certain capital structure decisions, and the risk that we may not be able to pay dividends or repurchase shares in accordance with our announced capital allocation plan; - compliance with covenants under our debt instruments and conditions in the credit markets;
- downgrade in the ratings of our debt could restrict our ability to access the debt capital markets;
- the outcome of uninsured claims and litigation against us;
- the risks of currency exchange rate fluctuations associated with our international operations;
- significant merger-related costs;
- risks related to our acquisition and divestiture activities;
- failure of our information technology infrastructure or any significant breach of security, including related to cyber attacks, and actual or perceived failure to comply with data security and privacy obligations;
- risks associated with tax liabilities, changes in
U.S. federal or international tax laws or interpretations to which they are subject; - the remedial measures to address our material weaknesses could be insufficient or additional issues relating to disclosure controls and procedures or internal control over financial reporting could be identified; and
- such other risk factors as set forth in our filings with the
U.S. Securities and Exchange Commission and in our filings with the Autorit茅 des march茅s financiers or theU.K. Financial Conduct Authority .
We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.
###
About
We are uniquely positioned to deliver greater efficiency across project lifecycles from concept to project delivery and beyond. Through innovative technologies and improved efficiencies, our offering unlocks new possibilities for our clients in developing their oil and gas resources.
Each of our more than 37,000 employees is driven by a steady commitment to clients and a culture of purposeful innovation, challenging industry conventions, and rethinking how the best results are achieved.
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Investor relations
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Email: Christophe Belorgeot
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