February 11, 2016 11:23 am
Updated: February 11, 2016 4:44 pm

Cenovus plans further job, executive pay cuts in 2016

WATCH: Calgary based Cenovus has announced plans for more job and executive pay cuts amid a rough day on the stock markets. Gord Gillies has the details.

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CALGARY – Oil company Cenovus announced on Thursday more job cuts are in store amid a fourth-quarter loss of $480.3 million.

According to Cenovus, the company plans to “further reduce its workforce,” which had already been slashed by 24 per cent by the end of 2015. The cuts left Cenovus with a total of about 4,000 staff.

Cenovus also said it plans to “adjust its discretionary spending and compensation programs.”

“The company is undertaking a thorough evaluation of all its staffing costs to align total compensation with the current business environment.”

Cenovus said the company’s president/CEO and four other highest paid executives will see their cash compensation, which was previously reduced in 2015, further reduced.

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The oil company posted a Q4 revenue of $2.19 billion.

On a per-share basis, Cenovus said it had a loss of 58 cents. Losses, adjusted for non-recurring costs, were 40 cents per share, well below what analysts had expected. The average estimate of four analysts surveyed by Zacks Investment Research was for a loss of 15 cents per share.

Cenovus shares have declined 23 per cent since the beginning of the year.

The Calgary-based company also reduced its first quarter dividend by 69 per cent to five cents per share.

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