PGS is scaling down and cutting costs to weather the current supply industry storm and be ready for improving market conditions in the future.
“The current market situation is very challenging for the seismic industry. We are addressing the activity reduction and low visibility by adjusting operations and cost”, says President and CEO of Petroleum Geo-Services (PGS) Rune Olav Pedersen.
“We will scale down our organization significantly while retaining our core capabilities and scalability to be in position to take advantage of what we believe will be an improving market following the current crisis”, he adds.
The company earlier reported that they were stacking three out of eight 3D vessels along with other cost measurements.
PGS is now going to take further steps in addressing the lower market activity by reducing its office-based personnel by approximately 40 percent.
Along with other cost cutting measurements, the company believes they may reduce their annual gross cash cost run rate down to 400 million USD, compared to earlier guidance of 600 million USD.
As part of the streamlining, all commercial activities will be combined into one business unit, led by Nathan Oliver. PGS expect the new organization to be implemented by August 1 this year.