FRANK’S INTERNATIONAL ANNOUNCES BUSINESS UPDATE

HOUSTON, March 23, 2020 (GLOBE NEWSWIRE) -- Frank’s International N.V. (NYSE: FI) (the “Company” or “Frank’s”) today provided the following update in response to current and potential business disruptions resulting from the spread of COVID-19 as well as recent changes in the oil and gas supply and demand fundamentals. 

Michael Kearney, Frank’s International Chairman, President and Chief Executive Officer, announced, “We are closely monitoring the global risks to public health and the slowdown in business activity related to the COVID-19 pandemic. The health and safety of Frank’s employees and their families, customers and communities is our top priority. We are responding by observing rigorous safety protocols and contingent operational plans to ensure we continue to service our customers while acting on the current guidance of health authorities across our global network. 

“In addition, we are re-evaluating our financial outlook based on the further challenges to our business due to the sharp decline in commodity prices, which are leading our customers to reconsider their capital spending plans for 2020 and beyond.  Although the situation remains fluid, based on the most recently available information, we expect to be materially impacted by reduced customer spending and activity, particularly in the U.S. onshore market and as related to rig operations that may be affected by COVID-19 impacts.

“Despite these circumstances beyond our control, the Frank’s management team continues to employ measures to ensure our balance sheet strength is maintained and our customers’ needs are met through this difficult period. We believe the Company has optionality to address the anticipated business declines and we are  acting rapidly to changing conditions to further reduce our cost structure, defer or eliminate certain capital spending projects and constrain spending of all kinds.  Our project management office overseeing the profitability improvement project is actively evaluating additional cost reductions that can be implemented. We are confident that we will exceed our targeted $30 million in cost reductions for 2020 and continue to move forward in transforming the Company’s operational efficiency for the long-term benefit of our employees, customers and shareholders. While it seems clear we will not be able to reach our 2020 revenue objectives, through incremental cost containment and capital expenditure controls, we hope to mitigate, to the maximum extent possible, the anticipated negative financial consequences.  These recent and evolving circumstances lead us to believe there is significant downside risk to our previous guidance and these prior comments should no longer be relied upon as the Company’s view of its forecasted financial performance,” Mr. Kearney concluded.