STEP Energy Services cuts staff as oilfield spending slump continues

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Another Calgary-based oilfield utilizations company is reporting job cuts as activity in Canada slows due to lower oil and gas creator spending.

STEP Energy Services Ltd. says it cut 13 per cent of its administrative crew in early 2019 and has reduced field staff by 12 per cent since Oct. 1.

In a regulatory information last year, the company indicated it had 1,120 employees at the end of 2017, sundry in Canada.

It added about 400 U.S. staff with its $350-million procurement of Oklahoma-focused Tucker Energy Services Holdings, Inc., last spring.

Aftermost month, Calgary-based Trican Well Service Ltd. said it had cut 160 contributions in the fourth quarter and, a few weeks later, producer Encana Corp. divulged it had cut its workforce by 15 per cent and ranks of executives by 35 per cent after penurious its deal to buy U.S. rival Newfield Exploration Co.

STEP said the administrative job curtailments it made would result in savings of about $4.1 million annually.

“Our prospect for Canada remains cautious as recent client budgets underpin a commitment to disburse within cash flow,” said STEP CEO Regan Davis on a colloquium call on Wednesday.

“This is evident by a 30 to 35 per cent modulate rig count in this quarter versus last year.”

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