Marine services business Bhagwan Marine is shifting its base of operations from Geraldton to Perth as part of cost-saving initiatives in light of continued tough conditions in the offshore oil and gas market.
Marine services business Bhagwan Marine is shifting its base of operations from Geraldton to Perth as part of cost-saving initiatives in light of continued tough conditions in the offshore oil and gas market.
In a statement, Bhagwan said it had been forced to face the downturn in Western Australia’s offshore oil and gas sector by adopting a more global approach to its business.
That includes moving its headquarters to Perth, where the majority of its clients are based, which will result in an undisclosed number of redundancies.
“It’s been a really tough decision this one,” managing director Loui Kannikoski said.
“My heart will always be in Geraldton, where three generations of my family have lived, however the reality is that in 2017 we run a company that is no longer just a regional WA business, and market conditions have meant we’ve had to shift the focus away from our hometown in order to survive and flourish.”
Mr Kannikoski said while the shift to Perth would result in redundancies, many roles had been relocated to the new head office and other locations around Australia.
It follows media reports yesterday that Bhagwan had been selling some of its vessels and refinancing its debt in order to avoid financial strife.
The company posted a $45 million net loss for the 2016 fiscal year, with revenue down $55 million, to $145 million.
