Trican Well Service Ltd., headquartered in Calgary, reduced its North American workforce by approximately 2,000 as a result of cost-cutting measures initiated in late 2014. The global well service company reported its 1Q results for 2015 Tuesday, which included 26 percent decrease in consolidated revenue from 1Q of 2014.
According to the report, the company’s Canadian operations generated 1Q revenue of $222.7 million and operating income of $7.8 million for 2015, compared to $353.3 million and $62.5 million, respectively, for 1Q results in 2014. Its 1Q Canadian results were “negatively impacted by reduced customer activity caused by low commodity prices.” There was a sharp decline in activity levels in late February that remained low throughout the remainder of the first quarter.
Similarly, U.S. operations generated $201.4 million, a 41 percent decrease from a year prior, in revenue for 1Q of 2015. The report cited “a weak U.S. operating environment caused by low commodity prices” for the declines in utilization and pricing for Trican’s U.S. operations.
The energy industry has seen significant workforce reductions in companies, large and small, since crude oil prices began plummeting in mid-2014.
Trican’s quarterly report comes days after Canadian Natural Resources Ltd., Canada’s largest oil producer, said it expects a good energy industry partner in Alberta’s newly elected left-wing government, Reuters reported. Though Canadian Natural Resources warned that Premier-elect Rachel Notley’s policies – which include increased corporate taxes and royalties – would not be beneficial to the energy industry and “would cause businesses to flee the province,” the company would be “willing to educate her.”
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