Page 29 - Danish Offshore Industry 2016

TOUGH TIMES The decline in oil and gas activities has hit Falck Safety Services hard. Despite of chasing new business areas the general recession has not been relieved. “In 2014 we made life safer for 370,000 offshore workers, but in 2015 the fgure dropped to 300,000. Consequently, we had to say good-bye to several of our good staff. We have seen a most signifcant drop in our activities, and we have been through some tough rounds reducing the num- ber of employees. That is partly caused by the fact that our rates have been under pressure as our major clients have demanded a reduction of 20-30% of our standard rates. It has not been a proposal, but a frm demand if we wanted to stay on the list of suppliers.” TIME FOR CONSOLIDATION Such setbacks cannot help calling for demands for a change of the business concept, so Falck Safety Services has been far from passive. Already launched activities CEO Peter Svarrer, Falck Safety Services have been intensifed and the general structure has had an overhaul. CEO Peter Svarrer, Falck Safety Services, was far from “We clutched in the turbo in order to tell the world that positive when last year he told this magazine about we can deliver our services wherever required, and then his expectations for 2015 and 2016. Unfortunately, his we made a forceful entrance into the maritime world. tale of the future did not come true as the realities That is a close-by area, but this effort has only partly were even more depressing and the forecast even more been able to balance the decline in our core business, gloomy. Therefore, he is not hiding the serious conse- so we have already closed down one of our centers in quences of the situation. Norway. We consider, too, if it is possible to concentrate our activities in less localities, and if there are places “More than a year ago I saw it coming, and unfortu- where we should not be present because it make sense nately I was right. It was, however, somewhat worse than no more,” explains Peter Svarrer who on the other hand predicted and the dramatic decline we have experienced is looking at other areas where the present situation of- in 2015 made it a tough year. The drop in oil prices came fers new opportunities. Simply because that is absolutely faster and more suddenly than anybody had expected, necessary. and the fgures we get from our clients talk about 250,000 offshore personnel being sacked worldwide. “We are looking for markets where we can consolidate, That is a dramatic drop in activity, so 2016 looks like and we can do that in many ways. Some of our weaker being a very tough year, too, as generally it is the E & P competitors will have to give up – something we have companies with many employees that will feel the de- already witnessed – so we are ready to merge with them cline,” states Peter Svarrer. The tough times have almost if that makes sense. Some markets are simply not large immediately had an effect on Falck Safety Service, as enough any more, and due to the pressure on costs safety several pages in their order book are left blank, and the will not see the same investments as previously. Things fgures talk their unmistakable language. which are not required by law have a tendency ▲ 27 / TOUGH TIMES