Calgary-based Trinidad Drilling to slash capital budget, cut spending

CALGARY -- Trinidad Drilling Ltd. (TSX:TDG) has chopped its initial capital spending budget for 2016 to $30 million -- 84 per cent less than what it's spending this year -- to reflect weak conditions in the oil and gas industry.

See Full Article

The Calgary-based company says it's primarily aiming to maintain Trinidad's current operations, although it may be able to spend as much as $45 million if certain growth opportunities arise -- still 76 per cent below 2015 levels.

As of Sept. 30, Trinidad had spent $113.6 million on capital projects over the first nine months of 2015 and had a full-year budget of $185 million.

Trinidad Drilling says it's continuing to look for cost reductions at its operations and corporate offices.

It says general and administrative costs in are expected to be cut by a further 10 to 15 per cent in 2016, on top of a 30 per cent reduction in 2015 from levels anticipated early in the year.

So far, its workforce has been cut by half since the beginning of 2015 -- mostly in the field -- and the company has reduced wages, salaries, director fees and dividends.

"We have assumed that existing conditions remain in place for 2016 and we have cut back spending and lowered our cost structure in order to manage through this downturn," Lyle Whitmarsh, Trinidad's chief executive officer, said in a statement.



Advertisements

Latest Economic News

  • Syngenta settles U.S. farmer lawsuits in China corn trade case

    Economic CTV News
    MINNEAPOLIS -- Swiss agribusiness giant Syngenta has agreed to settle tens of thousands of U.S. lawsuits by farmers over the company's rollout of a genetically engineered corn seed variety before China approved it for imports. Source
  • London's Heathrow world's most connected airport, Toronto's Pearson is 5th: Report

    Economic CTV News
    London's Heathrow has emerged the most connected airport, and Toronto's Pearson placed fifth, in a list that ranks the busiest megahubs around the world. Compiled by air travel intelligence company OAG, the international megahubs index ranks airports by calculating the total number of possible connections between inbound and outbound international flights within a six-hour window. Source
  • Apple stock rebounds after news of possible iPhone X supply cuts

    Economic CBC News
    Apple's stock has rebounded after taking a hit following reports that it was telling parts suppliers to slow down delivery of iPhone X components. The tech company's stock fell 1.3 per cent in early trading Monday, but has since rebounded by about the same amount on Tuesday following news from Digitimes on Monday that Apple is telling its suppliers it only needs about 40 per cent of the parts and components it had initially asked them for. Source
  • A path to possible wealth; getting a little Shady

    Economic CTV News
    NEW YORK -- Tired of living a life in which you are not making bank on royalties from the 43rd Grammy Awards Best Rap Solo Performance, "The Real Slim Shady?" The world may turn for you come October. Source
  • Brent oil price hits 2-year high as OPEC and Turkey talk down supply

    Economic CBC News
    The price of the European benchmark oil blend rose to its highest level since the summer of 2015, amid signs that the worldwide glut of supply may start to dissipate. Brent crude oil briefly went as high as US $59.49 a barrel after Turkish President Tayyip Erdogan threatened to cut off a pipeline that takes 600,000 barrels per day of oil from Iraq through Kurdish territory into a Turkish port. Source
  • Toronto real estate board raises concerns about possible vacancy tax

    Economic CTV News
    TORONTO - The Toronto Real Estate Board is urging the city to exercise caution regarding a possible vacant home tax. The board says it's worried there is not enough data or evidence to support the idea that a vacancy tax would increase the supply of rental housing. Source
  • Equifax CEO suddenly retires as data breach fallout continues

    Economic CBC News
    Equifax CEO Richard Smith is retiring less than three weeks after the company admitted to a cybersecurity breach that had exposed the personal information of 143 million Americans. The Atlanta-based company's board made the announcement before markets opened on Tuesday that the 57-year-old Smith is retiring from both positions after 12 years leading the company. Source
  • Equifax CEO suddenly ousted as data breach fallout continues

    Economic CBC News
    Equifax CEO Richard Smith is retiring less than three weeks after the company admitted to a cybersecurity breach that had exposed the personal information of 143 million Americans. The Atlanta-based company's board made the announcement before markets opened on Tuesday that the 57-year-old Smith is retiring from both positions after 12 years leading the company. Source
  • Equifax CEO suddenly out as data breach fallout continues

    Economic CBC News
    Equifax CEO Richard Smith is retiring less than three weeks after the company admitted to a cybersecurity breach that had exposed the personal information of 143 million Americans. The Atlanta-based company's board made the announcement before markets opened on Tuesday that the 57-year-old Smith is retiring from both positions after 12 years leading the company. Source
  • Bombardier faces prospect of bad news for its aerospace and railway businesses

    Economic CTV News
    MONTREAL -- Bombardier seems headed towards a double barrel of bad news Tuesday with the potential to affect its commercial aircraft and railway businesses. The first hit is coming from Europe, where multiple media reports say the French government has approved the merger of Alstom with German railway manufacturer Siemens. Source