Oil-rig builder Lamprell Plc said it cut about 20 percent of its administrative staff and expects 2017 to probably be the toughest year to date, despite early signs of recovery.
Lamprell has been cutting costs as oil explorers have cut their spending and cancelled contracts to counter a more-than-2-year rout in oil prices.
Lamprell, which runs three rig building yards in the UAE, said it expects the overhead cuts to contribute annualized savings of $23.4 million in 2017.
The company said it expects 2017 revenue to be in the lower half of its previous forecast of $400 million to $500 million in the absence of large project deliveries in the second half of this year.
The company’s 2016 revenue fell 19.1 percent to $705 million for the year ended December 31.