Encana planning further 20 per cent 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. Its 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 rise, bucking Wall Street losses

    Economic CTV News
    TOKYO - Shares were higher in Asia on Wednesday, supported by rosy manufacturing data from Japan. The gains came despite losses on Wall Street, where a six-day winning streak was snapped by a plunge in Walmart stock and losses in other sectors. Source
  • CPTPP trade deal text is released

    Economic CBC News
    The final version of a landmark deal aimed at cutting trade barriers in some of the Asia-Pacific's fastest-growing economies was released on Wednesday, signalling the pact was a step closer to reality even without its star member the United States. Source
  • B.C. unveils housing plan that raises foreign buyers levy and taxes speculators

    Economic CTV News
    VICTORIA -- British Columbia is raising its foreign buyers tax and expanding it to areas outside of Vancouver, while bringing in a new levy on speculators, as part of a sweeping plan to improve affordability in the province's overheated housing market. Source
  • B.C. government introduces new speculation tax and raises foreign buyers tax

    Economic CBC News
    The B.C. government delivered on a wide variety of promises from its election platform and throne speech in its first budget, forecasting a $219 million surplus for the upcoming fiscal year on the strength of a strong economy. Source
  • Canadian bank earnings forecast bright but housing, NAFTA cloud outlook

    Economic CBC News
    The forecast for Canada's biggest banks is bright thanks to U.S. tax reform and higher interest rates, but as they report first-quarter results this week, domestic mortgage demand and the North American Free Trade Agreement could cloud the long-term outlook, analysts say. Source
  • Competition Bureau reaches settlement with Leon's and the Brick

    Economic CTV News
    OTTAWA - The Competition Bureau says it has reached an agreement with Leon's Furniture Ltd. and the Brick Ltd. regarding allegations of deceptive marketing practices. As part of the settlement, Leon's and the Brick have agreed to each donate $750,000 worth of home furnishings over two years to charities to be approved by the regulator. Source
  • Competition Bureau settles with Leon's, The Brick over marketing practices

    Economic CBC News
    The Competition Bureau says it has reached an agreement with Leon's Furniture Ltd. and the Brick Ltd. regarding allegations of deceptive marketing practices. As part of the settlement, Leon's and The Brick have agreed to each donate $750,000 worth of home furnishings over two years to charities to be approved by the regulator. Source
  • Pipeline backlogs to cost Canadian economy $10.7B this year: Scotiabank

    Economic CTV News
    CALGARY -- Delayed oil pipeline construction is causing a steep discount for Canadian crude prices that is costing the economy roughly $15.6 billion a year or about 0.75 per cent of GDP, according to Scotiabank. Source
  • Pipeline backlogs could cost Canadian economy $15.6B a year: Scotiabank

    Economic CTV News
    CALGARY -- Delayed oil pipeline construction is causing a steep discount for Canadian crude prices that is costing the economy roughly $15.6 billion a year, according to Scotiabank. "Pipeline approval delays have imposed clear, demonstrable and substantial economic costs on the Canadian economy," said bank chief economist Jean-Francois Perrault in a report Tuesday. Source
  • Don't fall for the staging: Real estate expert on how to avoid rookie buyer mistakes

    Economic CTV News
    Being a first-time home buyer without guidance from qualified professionals is like using the internet to diagnose a serious illness -- it’s not going to end well. That’s the advice Toronto real estate agent and industry expert Karyn Filiatrault gives to millennials looking to enter the housing market. Source