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

  • Nutrien to sell Israel Chemical stake for expected US$700 million

    Economic CTV News
    SASKATOON -- Fertilizer giant Nutrien Ltd. says it plans to sell all of its holdings in Israel Chemicals Ltd. in a secondary share offering for an expected US$700 million. The sale comes as one of the requirements set out by global regulators for Potash Corp. Source
  • Australia files WTO complaint against Canadian wine sales measures

    Economic CTV News
    TORONTO - Australia has filed a complaint about Canada's rules around wine sales with the World Trade Organization. The complaint filed Friday argues that Canada's distribution, licensing and sales measures discriminate against imported wine. Source
  • Beer Canada calls on feds to axe increasing beer tax

    Economic CTV News
    OTTAWA -- A trade association for Canada's beer industry wants the federal government to stop its plan to annually increase a tax on the alcoholic drink. Beer Canada has launched a new campaign calling on Canadians to sign a petition asking Finance Minister Bill Morneau to axe the escalating beer tax. Source
  • Instacart buy Unata as it plans Canadian expansion

    Economic CTV News
    TORONTO -- American grocery delivery service Instacart says it has bought Toronto-based technology company Unata to ramp up its expansion efforts across Canada. Instacart's chief business officer Nilam Ganenthiran says the acquisition gives the company access to Unata's digital flyer, loyalty, e-catering and list-building capabilities. Source
  • Australia complains to WTO about Canadian rules on selling wine

    Economic CBC News
    Australia has complained at the World Trade Organization about the rules applied to the sale of wine by Canada and various Canadian provinces, a WTO filing showed on Tuesday. "It appears that a range of distribution, licensing and sales measures such as product markups, market access and listing policies, as well as duties and taxes on wine applied at the federal and provincial level may discriminate, either directly or indirectly, against imported wine," Australia said. Source
  • 'Twice the headache': Why it's getting harder for Canadians to enter U.S.

    Economic CTV News
    Amid negotiations over possible changes to the North American Free Trade Agreement, an immigration lawyer says it’s becoming more difficult for Canadians to cross the U.S. border for work. In 2016, more than 1.1 million Canadians were granted temporary visas to work in the United States. Source
  • N.S. gives payroll rebates to Ernst and Young for new 'centre of excellence'

    Economic CTV News
    HALIFAX - The Nova Scotia government has awarded payroll rebates to Ernst and Young as the professional services firm establishes its first Canadian-based Global Centre of Excellence for Robotic Process Automation Service in Halifax. Nova Scotia Business Inc. Source
  • General Motors sees sustained profits through 2018

    Economic CBC News
    General Motors will take a $7 billion US write-down in 2017 tied to the U.S. tax overhaul, but expects strong sales in North America and China to sustain its profit through 2018. The Detroit automaker on Tuesday reaffirmed its 2017 expectations for profit between $6 and $6.50 per share and said it expects similar results in 2018. Source
  • Founder of Canada Jetlines takes helm as CEO of rival Flair Airlines

    Economic CTV News
    KELOWNA, B.C. -- The founder of Canada Jetlines is taking over as chief executive of Canadian discount carrier Flair Airlines Ltd. Jim Scott replaces Flair founder and former president Jim Rogers, who will remain an adviser until 2019 after selling his shares in the Kelowna-based company. Source
  • Davos organizers: Trump to make last-day address at forum

    Economic CTV News
    GENEVA -- U.S. President Donald Trump will deliver the closing address at the elite World Economic Forum conference in Davos next week, which focuses on "finding ways to reaffirm international co-operation on crucial shared interests," forum organizers announced Tuesday. Source