Oilfield services group Hunting Plc has cut its workforce by a fourth as low oil prices and weak demand slammed most of its business units in the second quarter, the company said on June 29.
The manufacturer and services provider, which had 2,956 employees across its global operations at the end of last year, said it would cut 739 jobs by the end of the month.
Hunting, which manufactures a wide range of tools and solutions used in oil and gas exploration, said it would close three distribution centers in North America and two manufacturing facilities in Oklahoma City and Texas.
“Our business is likely to continue to see volatile trading throughout Q3 2020, but the group’s cost base has now been recalibrated to current market conditions,” Hunting CEO Jim Johnson said.
Sales at the company’s biggest unit Hunting Titan slumped nearly 40% during the half-year, compared with the second half of 2019, hammered by reduced U.S. onshore activity levels.
The British firm also announced a more than 50% cut in its $22 million budgeted annual capital expenditure.
Global energy companies have cut their spending to save cash after oil prices collapsed on weak fuel demand due to the coronavirus crisis.
Hunting, however, said it does not anticipate drawing down on its $160 million secured revolving credit facility at this time, as its cash position remains healthy.
Recommended Reading
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.
Deep Well Services, CNX Launch JV AutoSep Technologies
2024-04-25 - AutoSep Technologies, a joint venture between Deep Well Services and CNX Resources, will provide automated conventional flowback operations to the oil and gas industry.
TotalEnergies Buys Majority Stake in Ecoslops Provence JV
2024-03-01 - TotalEnergies bought out its joint venture partner to become the sole shareholder in cleantech venture Ecoslops Provence.
Tivoli Midstream Buys Southeast Texas Coast Infrastructure
2024-04-29 - Tivoli Midstream acquired the Chocolate Bayou from Ascend Performance Materials, including storage and land for development.
SCF Acquires Flowchem, Val-Tex and Sealweld
2024-03-04 - Flowchem, Val-Tex and Sealweld were formerly part of Entegris Inc.