Range Warns of Further Streamlining
Range Resources Ltd. revealed Wednesday in its 2015 Annual Report that it will continue to reduce its general and administrative costs and streamline its operations in the near future.
In the year ended June 30, 2015, Range focused on driving efficiency and cost reduction by streamlining the scale of non-core and “cash draining” businesses. During the year, the company sold its drilling business and its assets in Texas and exited the Puntland state of Somalia. Range has indicated that it is also aiming to dispose of its interests in Guatemala and Georgia and is keeping its position in Colombia under review.
General and administrative expenses for Range Resources decreased to $9.94 million in the year ended June 30, 2015, from $14.48 million during the same period in 2014. The company’s net loss was $30.27 million, compared to a net loss of $102.54 million in 2014. Range is currently in the middle of its 22 well drilling campaign in Trinidad, which is scheduled for completion by 2016.
Yan Liu, Range Resources chief executive, commented in the company’s annual report:
“Given the low commodity price environment, we had to take a number of immediate actions in order to preserve cash and control costs. As a result, we completed a number of non-core asset divestments and streamlined our operations, which allowed us to focus our time and resources on growing our core assets. As a result of the drilling business sale, we have reduced our headcount across the group from over 250 to 32. Our G&A costs were down significantly by 32 percent during the period and we are continuing to target cost savings across the business.”
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