Trinity Axes COO in Redundancy Program
Trinidad and Tobago-focused energy firm Trinity announced Wednesday that it will axe its chief operating officer on March 31, 2016 as part of a redundancy program, which is designed to save the company money.
The program, along with other cost reductions achieved to date, is expected to reduce general and administrative (G&A) costs on a run rate basis by more than $1.6 million per annum. Trinity expects to save more than $300,000 in the current financial year, although this will be offset by directly related cash costs of approximately $200,000. The company’s G&A costs have already been reduced to $5.7 million for the first half of 2015 (1H 2014 G&A costs: $10.4 million) and Trinity remains on target to reduce operating costs to $26 million for the full financial year 2015 (operating costs 2014: $33 million).
Joel Pemberton, chief executive officer of Trinity, commented in a company statement:
“While we cannot control the price of oil, we are working hard to manage production levels on a constrained capital budget while reducing those costs that we can control. The measures we have taken to reducing staffing across the business reflect the level of investment activity justified by the current oil price. Crucially, we are retaining a strong, experienced core of operational staff to ensure that our assets continue to be run to the highest standards, without compromising their potential should the commercial environment improve in the future. I would like to express my thanks to Craig McCallum and all of Trinity’s employees for their commitment and endeavours during this difficult time.”
There have been a number of high-level organizational changes at Trinity over the past few months, with non-executive directors David Macfarlane, Ronald Harford and Finian O’Sullivan all having left the company since June. Trinity announced on September 1, 2015 that it will sell its 100 percent interest in the onshore Guapo-1 (GU-1) block for $2.8 million and revealed in July 2015 that an agreement with Centrica to purchase 80 percent of two blocks offshore Trinidad was terminated.
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