The collapse of subsea contractor Ceona was greeted with dismay by the chief executive of industry body representing the sector.
Neil Gordon, of Subsea UK, was speaking after confirmation that the company with offices in Aberdeen, London and Houston, had gone into adminstration, with the loss of 102 jobs.
Administrators EY said the group’s cash flows came under significant strain due to falling demand for its services as a result of the depressed market conditions. The company had also invested more than $400million on its flagship vessel Ceona Amazon, which the company saw as a “game changer” for the industry.
Gordon said: “With its fresh approach to subsea vessels and construction, Ceona is a good example of a young, dynamic company aiming to do things differently.
“Today’s announcement highlights the tragic consequence of major project cancellations and postponements and lack of new projects coming onstream.
“Despite our rapid growth over the last few years and our world-leading position, the subsea sector is not immune to the impact of the low oil price, particularly those with costly assets such as vessels.
“As an industry, we must be doing more and doing it faster to adjust to current conditions.
“Subsea UK, along with other industry bodies, is focused on driving real changes in behaviour that will result in the necessary actions that deliver true collaboration, genuine efficiencies and a re-setting of the cost base that is not simply about cutting margins.”