An oilfield services company that laid off almost two-thirds of its workers over the past two years is now warning it can’t find enough new staff to take full advantage of a recent increase in activity.
Calgary-based Essential Energy Services (TSX:ESN) says it cut more than 400 workers in 2015 and almost 250 in the first three months of this year, dropping its staff count from almost 1,000 to a low point of 343 last March.
The cuts came as customers in Western Canada reduced spending and their appetite for Essential’s well completion and production services.
Essential says demand has been rising this fall as producers react to modest improvements in commodity prices but it warns that it could be “constrained” in its ability to accept work because it needs to hire another 40 to 50 workers.
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Mark Salkeld, president of the Petroleum Services Association of Canada, said in an interview last week that the length and depth of the current energy industry downturn means many laid-off oilfield workers have abandoned the profession.
Essential reported Wednesday, after markets closed, that it had a net loss of $3.8 million in the three months ended Sept. 30 on revenue of $30 million, versus net income of $2.9 million on revenue of $48 million in the same period of 2015.
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