APL division initiates a capacity adjustment due to reduced E&P spending

Over the past year APL has experienced a decline in order intake. The company will today initiate a process to adjust the capacity in line with the lower market activity.  The reduction will affect all offices and will be approximately 20 % of the work force in the APL division.

APL's current projects are performing in line with expectations and the process will not affect the progress of these projects.

The company has over the last months closely monitored the market situation. Due to the reduced E&P spending, APL does not expect a significant volume of new orders in the near-term. APL further expects new business to require new concepts and technology. The first step of the process that starts today will be to reduce overall capacity. APL will in a second step increase product development activities to prepare the new solutions that will be required in future projects.

 The process will be carried out in close cooperation with the employee's representatives of the division.

"Since the start of the economic downturn almost a year ago we have seen a reduction in the order intake within APL that has been unprecedented. Even 1997/8 did not lead to the same dramatic reduction in activities. So far during 2009 we have produced from the very strong order backlog we had at the start of the year. But even if we firmly believe in the longer term potential and viability of this business, we have to adjust to the current reality in order to remain a healthy company", says Carl K. Arnet CEO.

BW Offshore has a total of around 1,200 own employees while the number of employees within APL is around 300. All offices will participate in the process. The reductions in capacity of the individual offices will depend on the expected future market and competencies.

APL aims to conclude the processes within September 2009.

For further information, please contact:
Carl K. Arnet, CEO BW Offshore, +65 9630 3290
Knut R. Sæthre, CFO BW Offshore, +47 9111 7876