Barrow-in-Furness marine engineering services company James Fisher and Sons plc said on Tuesday its revenue in the second quarter was 18% lower than the comparative period in 2019.
For the first half of the year, James Fisher’s revenue was 10% lower than the comparative period of 2019.
In a trading update for the half year to June 30, 2020, James Fisher said: “As announced in the group’s AGM statement, the effects of Covid-19 on the group have been exacerbated by a sharp fall in the price of oil.
“The imbalance between supply and demand in the oil and gas sector has continued to place downward pressure on oil prices since then and this may persist for some time.
“Whilst many of the group’s businesses have proven to be resilient through the first half, group revenue in the second quarter was 18% lower than the comparative period in 2019.
“For the first half, group revenue was 10% lower than the comparative period in 2019.
“In Marine Support, the second quarter saw subsea service projects being deferred, in both renewables and in the oil and gas sector, together with supply chain challenges due to Covid-19 across all businesses.
“As a result, Marine Support’s financial performance will be lower in the first half, year-on-year, despite the ship-to-ship oil transfer business trading strongly during that period.
“We have taken the decision to restructure the division, reduce the cost base and refresh the management structure which will provide clearer strategic and operational direction going forward.
“Specialist Technical has performed satisfactorily with both the nuclear and defence segments proving resilient despite some logistical supply chain issues.
“Offshore Oil, which had good momentum entering 2020, has traded well despite the challenges of Covid-19 and will report improved profitability compared to the first half of 2019.
“Notably, our artificial oil-well lift business continues to perform well and we have secured a number of marine infrastructure decommissioning projects in Asia during the first half.
“Tankships traded well through the first four months of 2020, but shipments of clean petroleum products inevitably reduced during May and June as a consequence of the UK and Irish lockdown.”