KATY, Texas, April 28, 2020 /PRNewswire/ -- U.S. Silica Holdings, Inc. (NYSE: SLCA) today announced additional SG&A cost reductions of approximately $17 million in response to the COVID-19 pandemic and resulting lower North American oilfield well completion activity.
The Company has closely monitored industry proppant demand to align costs with market conditions and is taking necessary actions including workforce reductions, 401k match suspension, elimination of 2020 raises for salaried employees, reduced senior executive salaries and curtailed operating hours at several facilities.
"The decline in oil demand resulting from COVID-19 has driven a precipitous decline in crude oil prices resulting in lower expected near-term demand for well completion products and services such as our frac sand and last mile logistics offerings,'' said Bryan Shinn, chief executive officer. ''The strategic actions announced today, along with our balanced business portfolio of industrial customers, will position us well to continue to outperform our competition in the short term and emerge from the economic downturn in an advantaged position."