Prosafe implements reorganisation and rationalisation program
As part of its cost efficiency measures reported in connection with the company's Q1 2016 report, Prosafe is implementing a reorganisation of the group's shore-based business resulting in a leaner organisation, a smaller and partly changed group management team and a rationalisation program across its workforce, the company said in its press release.
Governed from the head office in Cyprus, the new organisational model of the group is based on the principle of a lean line organisation focusing on the core business of safe and efficient management of the fleet.
As part of this change, Robin Laird, current deputy Chief Executive Officer, will assume the position as acting Chief Financial Officer, while Stig H. Christiansen continues as acting Chief Executive Officer. As stated in the press release from 27 April 2016, the Board of Directors will in due course start a recruitment process for a new permanent CEO evaluating both internal and external candidates for the position.
The rationalisation is necessary to ensure that the Prosafe group remains competitive in the current difficult market conditions and in a solid position for future growth when the industry starts to recover. The proposed work-force rationalisation is ongoing and will occur gradually throughout the remainder of 2016. The rationalisation program includes a substantial head-count reduction across the group.
The Group’s target is to reduce annual costs by at least USD 30 to 40 million. This should start to show effect from Q3 and gradually throughout the second half of 2016 as the rationalisation program takes effect and capacity is adjusted to a falling activity level. In addition, the target is also to reduce capex spend noticeably in the near and medium term to protect the financial position. Further updates will be provided as part of the Q2 2016 report late August.
Prosafe is the world's leading owner and operator of semi-submersible accommodation vessels.