CALGARY, Alberta, April 2 (UPI) -- Suncor Energy of Canada said it was making good progress on cost management measures that included the elimination of 1,000 staff positions.
The company in January became the latest in a growing list of Canadian energy companies facing financial problems in a weakening market environment by making "significant spending reductions" in its 2015 budget. The company said it planned an $830 million cut in capital spending and an operating expense reduction of around $580 million over two years.
The cost-cutting effort included a hiring freeze and the elimination of 1,000 positions from its payroll.
"Prudent cost management was a central focus for us well before the downturn in crude prices," Steve Williams, president and chief executive officer, said in a statement. "It remains so today, and is helping to maintain the strength of our balance sheet and effectively position the company both now and for the future."
The company said Wednesday it was on track to cut a combined $1 billion from its capital budget this year. Overall, the company said its production was largely unaffected by the cuts as output averaged 598,000 barrels of oil equivalent per day as of March 31.
A January report from the International Monetary Fund found lower crude oil prices would be a drag on investment activity in Canada, with the energy sector bearing the brunt of market trends. The provincial government of oil-rich Alberta said it expects a $7 billion revenue shortfall next year.
Last month, Nexen, the Canadian subsidiary of China National Offshore Oil Corp., said it will cut roughly 340 employees from its North American operations. In February, Canadian energy company Encana said 2015 capital investments will be cut by $700 million.
