Encana planning further workforce reduction

CALGARY -- Encana Corp. (TSX:ECA) says it's planning a further 20 per cent reduction in its workforce as it works to achieve up to $250 million in additional cost savings this year, beyond what had previously been announced.

See Full Article

Details on how many jobs will be affected and when they'll happen weren't immediately available.

The Calgary-based oil and gas producer announced the cuts with its fourth-quarter financial report, which included a $612 million net loss or 72 cents per share -- mostly the result of asset write downs and other non-operating items.

Those were partly offset by 36 per cent increase in Encana's liquids production since the fourth quarter of 2014, and previous cost-cutting measures that helped increase Encana's cash flow despite lower commodity prices.

Excluding $514 million in asset impairments and other items such as foreign exchange, Encana's operating earnings in the fourth quarter were $111 million or 13 cents per share -- up from $35 million or five cents per share a year earlier.

Encana chief executive Doug Suttles said the company enters 2016 with a strong balance sheet, a high-quality portfolio of assets and improved efficiency that offset the impact of reduced capital spending and lower prices for its oil and gas.

"Under our new plan, we will invest virtually all of our capital in our core four assets and our cost structure will be about $550 million lower than in 2015," Suttles said in a statement.

That $550-million target includes between $200 million and $250 million of additional savings in Encana's cost structure beyond its previous guidance.

The new cost savings include $50 million in overhead costs, mainly through the workforce reduction. Encana also expects to cut transportation and processing costs by between $75 million and $125 million and reduce other costs by $75 million.

Encana has also revised its 2016 capital plan to between $900 million and $1 billion, down 55 per cent from 2015. It expects the lower budget to have minimal impact on production levels this year.

The fourth-quarter asset impairments brought the total for 2015 to $4.1 billion. Net loss for the full year was nearly $5.2 billion, or $6.28 per share.

In 2014, Encana had a fourth-quarter profit of 27 cents per share or $198 million in the fourth quarter of 2014, when the current downturn in oil prices began to accelerate. It's full-year net profit for 2014 was nearly $3.4 billion or $4.58 per share.

Encana says the 2016 job cuts will have resulted in a 50 per cent reduction in its workforce since 2013.



Advertisements

Latest Economic News

  • Asian stocks little changed after Wall Street hits new highs

    Economic CTV News
    BEIJING - Asian stocks were little-changed Tuesday after Wall Street's major indexes rose to new highs as China prepared to open a key political meeting. KEEPING SCORE: The Shanghai Composite Index was off 0.1 per cent at 3,374.66 while Tokyo's Nikkei 225 was unchanged at 21,260.89. Source
  • Bombardier to partner with Airbus on CSeries program

    Economic CBC News
    Fred Cromer, president of commercial aircraft at Bombardier Aerospace, speaks to reporters at Bombardier's plant in Mirabel, Que. Source
  • Europe's Airbus to buy majority stake in Bombardier CSeries program

    Economic CBC News
    Fred Cromer, president of commercial aircraft at Bombardier Aerospace, speaks to reporters at Bombardier's plant in Mirabel, Que. Source
  • Netflix sinking deeper into debt to fuel subscriber growth

    Economic CTV News
    SAN FRANCISCO -- Netflix is sinking deeper into debt in its relentless pursuit of more viewers, leaving the company little margin for error as it tries to build the world's biggest video subscription service. The big burden that Netflix is shouldering hasn't been a major concern on Wall Street so far, as CEO Reed Hastings' strategy has been paying off. Source
  • Airbus to buy majority stake in Bombardier CSeries program

    Economic CTV News
    MONTREAL -- European aircraft giant Airbus Group is buying a majority stake in Bombardier's CSeries program. The two aircraft manufacturers announced the partnership Monday evening, weeks after the United States announced 300 per cent preliminary duties on exports of the aircraft following a complaint from Airbus rival Boeing. Source
  • Airbus shakes up industry with majority stake in Bombardier CSeries program

    Economic CTV News
    MONTREAL -- European aircraft giant Airbus Group is shaking up the global airline business by buying a majority stake in Bombardier's CSeries program and assembling the plane in the U.S. to avoid import duties. The two aircraft manufacturers announced the partnership Monday evening, weeks after the United States announced 300 per cent preliminary duties on exports of the aircraft following a complaint from Airbus rival Boeing. Source
  • Securities regulator sets out rules for Canadian marijuana stocks with U.S. interests

    Economic CBC News
    The Canadian Securities Administrators set out "specific disclosure expectations" for marijuana industry firms with investments in the U.S., offering much-anticipated clarity for companies that operate on both sides of the border. The umbrella organization for Canada's provincial and territorial securities regulators put out a staff notice, saying that cannabis companies must tell investors about certain risks when they invest south of the border — where growing and selling marijuana remains…
  • Regulators set rules for cross-border pot listings

    Economic CTV News
    TORONTO -- The Canadian Securities Administrators set out "specific disclosure expectations" for marijuana industry firms with investments in the U.S., offering much-anticipated clarity for companies that operate on both sides of the border. The umbrella organization for Canada's provincial and territorial securities regulators put out a staff notice, saying that cannabis companies must tell investors about certain risks when they invest south of the border -- where growing and selling…
  • TMX Group cracks down on marijuana companies that violate U.S. federal laws

    Economic CTV News
    TORONTO -- The TMX Group, the company that operates the Toronto Stock Exchange and the TSX Venture, says companies with business activities that violate U.S. federal law regarding marijuana could undergo a delisting review at the discretion of the TSX. Source
  • Loblaw to lay off 500 office staff in drive to cut costs

    Economic CBC News
    Loblaw Companies Ltd. has begun laying off 500 people from offices across the country, even as the company says it plans to add jobs later this year. "As part of a broad cost-control effort we have begun eliminating corporate office roles, including various executives, members of management and colleagues at all levels," spokesman Kevin Groh said in a statement, adding that the move will have "no effect on hourly store jobs. Source