23rd Sep 2015 07:59
LONDON (Alliance News) - Trinity Exploration and Production PLC Wednesday said it has identified a series of cost savings that can be made as part of its strategic review of the business, including making Chief Operating Officer Criag McCallum redundant.
"As part of the ongoing strategic review process, and in light of the company's current funding position and the low oil price environment, the company has identified a number of cost reduction measures which include management changes and a redundancy programme across functions. As part of this process, Craig McCallum, chief operating officer, is to leave the business with effect from March 31, 2016," said the company in a statement.
The measures, which were not detailed, will lead to a USD1.6 million reduction in general and administrative costs to save around USD300,000 in the current financial year. However, that saving will be offset by cash costs totalling USD200,000, it said.
General and administrative costs had already been substantially slashed to USD5.7 million in the first half of 2015 compared to USD10.4 million a year earlier.
Trinity is also focused on lowering its operating costs. Those costs in 2015 are expected to be "significantly lower" than in 2014 and it "remains on target" to reduce operating costs to USD26.0 million in 2015 from the USD33.0 million in 2014.
Trinity said it is making these savings by working with partners and through its operational experience, and highlighted it has not cut any jobs amongst field-based staff.
"The measures we have taken to reducing staffing across the business reflect the level of investment activity justified by the current oil price. Crucially, we are retaining a strong, experienced core of operational staff to ensure that our assets continue to be run to the highest standards, without compromising their potential should the commercial environment improve in the future," said Chief executive Joel Pemberton.
Trinity shares dropped 4.0% to 5.81 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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