20% pay cut at Calfrac - responsible mgmt
Globe says Calfrac Well Services making cuts 2015-02-27 09:40 ET - In the News The Globe and Mail reports in its Friday edition that Calfrac Well Services is feeling the pinch from deep cuts in oil producers' capital spending and a slowdown in drilling activity. The Globe's Jeff Lewis writes that Calfrac has slashed executive pay and says directors will take a 20-per-cent haircut starting in April. Calfrac is also closing operations entirely in Colombia. The industry is struggling plummeting oil prices. Companies that supply energy producers with hydraulic fracturing services and other equipment are under growing pressure to cut rates as larger firms rein in spending and new activity grinds to a halt. Calfrac boss Fernando Aguilar says: "The pressure is there. ... We've seen people parking fleets already. We've seen customers asking for more, so the marketing's very competitive." This week, 289 rigs were operating in Western Canada, or 37 per cent of the industry's total fleet. That is down from 317 rigs operating last week and well under levels a year ago. Calfrac this week said fourth quarter earnings more than doubled from a year ago to $26.5-million or 28 cents a share. However, profit was down sharply from the third quarter, falling about 40 per cent from $44.5-million.