Trican Well Service cuts jobs, salaries as low oil prices stall drilling plans
The salary reductions, layoffs and job sharing are in reaction to a severe slowdown in drilling activity due to low oil prices
CALGARY – Trican Well Service Ltd. said it has cut its employee costs by half through salary reductions, layoffs and job sharing in reaction to a severe slowdown in drilling activity due to low oil prices.
The Calary-based company, which offers hydraulic fracturing or “fracking” and other well completion services mainly in Western Canada, said it has also reduced by half the number of staffed equipment units it has in the field.
It said its executive and director cash compensation has been reduced by 20% and it will restrict spending going forward to sustaining capital as it forecasts a 50% drop in industry activity in the second half of 2020.
In a business update, Trican said it expects to report revenue from continuing operations for the first quarter of about $192 million as its crews were fully booked through January and February but jobs began to be cancelled in late March.
“This year will be extremely challenging for our industry and Trican,” it said in a news release.
“This disciplined strategy will allow us to maintain a strong balance sheet during these uncertain times and be positioned well coming out of this downturn.”