Petrofac to cut 2020 spending by $100 mln, more cuts in 2021

LONDON, April 6 (Reuters) - Oilfield services provider Petrofac said it would cut spending this year by $100 million and next year by $200 million to weather the collapse of activity in the sector amid the coronavirus outbreak and severe crude oil oversupply.

It plans to reduce its headcount by about a fifth and is furloughing more staff as well as cutting salaries by 10-15%, it said on Monday. Reuters reported some of the measures on Friday based on an internal document.

Petrofac's board also withdrew its recommendation for a 25.3 cent per share dividend, amounting to an $85 million payout, which was announced in February.

Its order backlog stands at $8.2 billion and it has liquidity of $1.1 billion, it said.

(Reporting by Shadia Nasralla; Editing by Kirsten Donovan)