Enerflex Begins Social Distancing, Slashes Capex
By CT2 Staff18 March 2020
Enerflex Ltd. has initiated social distancing due to the COVID-19 pandemic and will eliminate most travel not related to critical field operations.
“Our employees’ ability to work from home or safely at a construction site, gas plant or manufacturing shop is of the utmost importance,” the company said. The Calgary-based company operates in 17 nations.
A spokesperson said Enerflex employees are working from home if possible, using virtual meetings and avoiding common areas. In its manufacturing facilities, two work shifts are being used to insulate against the spread of the virus. Employees are traveling to field locations in separate vehicles.
Enerflex said it will cut growth spending 57% this year in response to oil and gas supply/demand volatility. Marc Rossiter, president and CEO, said the company needed a “more defensive position to maintain balance sheet strength and liquidity.”
A month ago, Enerflex announced capital expenditures of C$210 million for 2020, about the same as in 2019. Now it will spend C$90 million to fulfill existing obligations, including U.S. contract compression and build-own-operate-maintain (BOOM) contracts in other nations.
It has allocated C$15 million in 2020 to maintain its global fleet of 670,000 hp (500 MW). After the payment of an 11-cent/share dividend in April, quarterly dividends will be reduced to 2 cents/share.