Farstard shuts down operation in Melbourne

Farstard shuts down operation in Melbourne

Subsea World news – Norwegian shipowner Farstad Shipping will close down the management office in Melbourne as it concentrates its oil service activity in Australia to Perth.

Consequently, the Australian onshore organization will be reduced from 65 to around 30 employees.

Perth will facilitate both the headquarters and the operations centre, in addition to the company’s training and offshore simulation centre.

In addition, Farstad Shipping in Singapore, which previously has been reporting to Australia, will now be directly related to the head office in Aalesund.

“It is with regret that we have to lay off dedicated and highly skilled employees, but it is the unfortunate result of a necessary capacity adjustment,” Karl-Johan Bakken, CEO of Farstad Shipping.

Related News: Fugro in another round of Job cut as the company losses $410 Mln

Dutch subsea and survey specialist, Fugro, has ended the year 2015 with a loss of €372.5 million (€410.4 million) as the oil and gas market slump continues to drive revenues down and stress offshore services players.

The company managed to narrow the loss of €459 million ($505.7 million) from last year on better performance of Seabed Geosolutions division, curtailed investments, lower working capital, sale of multi-client data library, and sale and lease back of a vessel.

However, impairments, onerous contract charges and restructuring costs in 2015 were at some €363 million compared to €630 million in 2014.

In addition, Fugro said that due to the negative net result, the company will not propose to pay a dividend over the year 2015.

Full-year revenue was €2.36 billion, down approximately 8% from €2.57 billion in 2014.

In 2105, Fugro reduced its headcount by 1,577 people (12% of total personnel), compared to the initially planned reduction of 750. The fleet was also reduced. Geotechnical vessels were cut from 11 to 7, the survey fleet capacity was slashed by around 20% and the subsea fleet by two long-term charters.

In 2016, we will continue to reduce costs, headcount and vessels proactively, in line with activity levels, the company said in its earnings report.

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