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

  • Kraft Heinz withdraws $143 billion bid to buy Unilever

    Economic CTV News
    NEW YORK -- Kraft Heinz has withdrawn its $143 billion offer to buy Unilever, backing away after the mayonnaise, tea and seasonings maker rejected the bid as too low. The companies announced the decision Sunday in a joint press release, saying that Kraft Heinz has "amicably" withdrawn the offer. Source
  • 1 killed, 3 injured in Saudi Aramco oil pipeline leak

    Economic CTV News
    DUBAI, United Arab Emirates -- Saudi oil giant Saudi Aramco says one person has been killed and three others injured as a result of an oil pipeline leak in the east of the kingdom. The company said in a statement Sunday that an emergency response team managed to contain the leak Saturday in Abqaiq. Source
  • IMF agrees to loan $5B to Mongolia

    Economic CTV News
    BEIJING - The International Monetary Fund and other partners have agreed on terms for a $5 billion loan to the Mongolian government to help get the north Asian country's economy back on track. The deal is subject to approval by the IMF's executive board. Source
  • Iraq says proven oil reserves rise to 153 billion barrels

    Economic CTV News
    BAGHDAD -- Iraq says new exploration has revealed an additional 10 billion barrels of oil, bringing its total proven reserves to 153 billion barrels. Oil Minister Jabar Ali al-Luaibi said in a statement Sunday that the increase comes from seven oil fields in central and southern Iraq, without naming them. Source
  • Toxic Jewelry and holiday scams: CBC Marketplace's consumer cheat sheet

    Economic CBC News
    Miss something this week? We got you. Here's this week's Marketplace cheat sheet. Get this in your inbox every Friday. Sign up for the Marketplace newsletter. Rotten reno Paul Gough says he's had to take time off work to act as a contractor and make his home livable again. Source
  • When will oil demand peak? Depends on our driving habits

    Economic CBC News
    In the past, forecasters had a relatively simple method of estimating whether demand for oil would increase or decrease and by how much. For the most part, they simply looked at the economy. If people were making more money, it was safe to assume they would spend more, travel more and head to the car dealership more often. Source
  • 'I was in shock': Why Canadians are still struggling with runaway cellphone charges

    Economic CBC News
    After CBC News ran a story about a cellphone customer who got hit with a $24,000 data roaming charge, more customers started writing in with their own nightmare bill stories. And most involved big data charges. Source
  • Ineffective laws fuelling Canada's online piracy problem, U.S. copyright group says

    Economic CBC News
    Ineffective laws that lag behind international standards have made Canada a hot spot for online piracy and copyright infringement, according to a group of rights holders that has again placed this country on its global watch list. Source
  • Enbridge says pipeline leak near Edmonton was caused by construction

    Economic CTV News
    EDMONTON -- Enbridge (TSX:ENB) says it believes a pipeline that leaked near Edmonton was struck by another company doing construction in the area. The pipeline company says in a news release that the incident happened Friday on its Line 2A pipeline at an industrial site in Strathcona County. Source
  • Trump sons in Dubai to open golf club

    Economic CTV News
    DUBAI, United Arab Emirates -- Two of U.S. President Donald Trump's sons arrived in the United Arab Emirates for an invitation-only ceremony Saturday to formally open the Trump International Golf Club in Dubai. Photographs shared on social media by real estate brokers showed Eric and Donald Jr. Source