Cenovus Energy says it will make a 15% staff reduction, mostly to its contract workforce, and will suspend employee salary increases to preserve “financial resilience” in case oil falls further.
Cenovus made the announcement in a production update released today.
“In the current challenging oil price environment, we’re reducing capital spending in order to help preserve our financial resilience,” said Brian Ferguson, Cenovus president and chief executive
“As well, we have additional flexibility to further reduce capital spending if oil prices continue to fall or remain low for an extended period.”
The company said cash flow was $3.5 billion in 2014, down 4% from the previous year, primarily due to an 82% decrease in operating cash flow from refining. There was also a $497 million non-cash goodwill impairment associated with Pelican Lake.
Combined oil sands production averaged more than 128,000 barrels per day (bbls/d) net in 2014, up 25% from 2013.
Capital investment was $3.1 billion, 6% lower than in 2013.