Aker Solutions expects its revenue to fall by 30% this year, driven down by the impact from the COVID-19 pandemic and the crash in oil prices, and plans to respond with further cost-cutting, the Norwegian oil services company said.
"The depth and scale of the decline is still unclear, but the second quarter is likely to be one of the most uncertain and disruptive quarters our industry has been through," Chief Executive Luis Araujo said in a statement on Thursday.
Analysts polled by Refinitiv on average predicted a decline of 21% in 2020.
Aker Solutions will aim to cut fixed costs by about 1 billion Norwegian crowns ($97 million), up from a previously announced 750 million crowns, and will cut capital investments by 40% from 2019 levels, the company added.
($1 = 10.2920 Norwegian crowns)
(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)