STEP Energy cuts staff as oil sands activity continues to languish
Another Calgary-based oilfield services company is reporting job cuts as activity in Canada slows due to lower oil and gas producer spending.
STEP Energy Services Ltd. told Canadian Press it cut 13 per cent of its administrative staff in early 2019 and has reduced field staff by 12 per cent since Oct. 1.
In a regulatory filing last year, the company indicated it had 1,120 employees at the end of 2017, most in Canada.
It added about 400 U.S. staff with its $350-million acquisition of Oklahoma-focused Tucker Energy Services Holdings, Inc., last spring.
Last month, Calgary-based Trican Well Service Ltd. told Canadian Press it had cut 160 jobs in the fourth quarter and, a few weeks later, producer Encana Corp. said it had cut its workforce by 15 per cent and ranks of executives by 35 per cent after closing its deal to buy U.S. rival Newfield Exploration Co.
STEP said the administrative job cuts it made would result in savings of about $4.1 million annually.
“Our outlook for Canada remains cautious as recent client budgets underpin a commitment to spend within cash flow,” said STEP CEO Regan Davis on a conference call on Wednesday. “This is evident by a 30 to 35 per cent lower rig count in this quarter versus last year.”