Precision Drilling moves to cut costs and capital spending plan
By CP STAFFIndustry Energy capital spending energy manufacturing oil Precision Drilling
Lowering to $48 million, compared with earlier expectations for $95 million.
CALGARY — Precision Drilling Corp. says it is reducing staff, cutting salaries and lowering its capital spending plan in response to the COVID-19 pandemic and current market conditions.
The company did not immediately say how many jobs it was cutting as part of the plan.
The cuts come as Precision lowers its 2020 capital spending plan to $48 million, compared with earlier expectations for $95 million, and warns that further changes may be considered as the year progresses.
The company also expects to reduce its fixed costs by over 30% on an annualized basis.
The oilfield services company is reducing its chief executive salary by 20%, while other executive officer salaries are being cut by 10 per cent. Board of director compensation is being reduced by 20%.
It is also implementing staff salary reductions and eliminating all non-essential travel, entertaining and other discretionary spending.