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Image courtesy of SBM Offshore.

SBM Offshore boosted its job cut target on Thursday as part of a cost savings effort.

The Netherlands-based company said in its half-year results that it now plans to cut “at least 650 positions worldwide” this year as part of a restructuring plan.

“This necessary adjustment of the company’s structure was initiated at the end of 2014 allowing the Turnkey segment to remain at breakeven during the first half of 2016 and to lower overheads costs by 29 percent during the period,” SBM Offshore said.

That headcount reduction target is up from the company’s previously announced target of 400, Reuters said.

SBM has not yet disclosed further details about the headcount reductions.

The company took a $31 million charge over the period tied to restructuring costs.

SBM expects the restructuring plan to generate annualized savings of at least $70 million.

The company said that updated figures show it plans to realize $270 million of annualized employee benefits savings.

Expected savings now amount to $190 million compared to anticipated annualized cost savings of $120 million, excluding $80 million in positive impact from foreign exchange rate fluctuations between 2014 and 2016.

SBM said the additional savings include about $20 million tied to natural attrition, $30 million related to increased expected headcount reductions and $20 million from various additional cost saving measures.

SBM said additional cost savings will be targeted through various means, including a 10 percent voluntary cut in fixed income for the next twelve months by the members of the Management Board and the Executive Committee.

The Management Board and the Executive Committee will also reduce their potential 2016 short-term cash incentive by 50 percent.

“The Management Board continues to view a full recovery as unlikely before 2018, and as previously announced the company will maintain a Turnkey overcapacity to position itself for a future market upturn,” SBM said.

SBM reiterated its 2016 Directional revenue guidance of at least $2 billion, with the company’s Turnkey segment accounting for between $600 million to $700 million and its Lease and Operate segment accounting for between $1.3 billion to $1.4 billion.

SBM said its directional revenue for the first half of 2016 declined by 40 percent to $939 million compared $1.57 billion in the year-ago period, reflecting “the expected slowdown in Turnkey activity levels due to continued difficult oil and gas market conditions.”

The company reconfirmed its 2016 Directional EBITDA guidance of around $750 million.

“Industry challenges persisted in the first half of 2016 although more productive discussions with some clients to find economic solutions for deepwater development are taking place.  We are making significant progress in aligning our business to the realities of today’s market,” SBM Offshore CEO Bruno Chabas said.