(Bermuda/Cyprus, 24 August 2009): 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 workforce 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
BW Offshore is one of the world`s leading FPSO contractors and a market leader within advanced offshore loading and production systems to the oil and gas industry. BW Offshore has more than 25 years' experience and has successfully delivered 14 FPSO projects and 50 turrets and offshore terminals. BW Offshore's technology division APL has delivered solutions for production vessels, storage vessels and tankers in a wide range of field developments. Adapting through competence, in-house technology, solid project execution and operational excellence, BW Offshore ensures that customer needs are met through versatile solutions for offshore oil and gas projects. BW Offshore has a global network with offices in Europe, Asia Pacific, West Africa and the Americas. BW Offshore has 1,200 employees and is listed on the Oslo Stock Exchange. For more information, please visit www.bwoffshore.com and www.apl.no.