CALGARY — Ensign Energy Services Inc. suspended its quarterly dividend as it reported a loss of $29.3 million in its latest quarter.
The drilling company says it stopped its regular payment of six cents per share due to the COVID-19 pandemic and the plunge in oil prices that has dried up demand for its services.
The move to stop its payment to shareholders follows a decision in March to reduce its capital spending plan for the 2020 to $60 million compared with an original plan for $100 million and cut the pay of its top executives in a move to reduce costs.
Ensign says the loss attributed to common shareholders amounted to 18 cents per share for the quarter ended March 31, compared with a loss of $22.2 million or 14 cents per share a year ago.
Revenue fell to $383.9 million, compared with $445.3 million in the first quarter of 2019.
The company says its operating days totalled 9,681 in the first quarter of 2020, down from 11,047 in the same quarter a year earlier as customers cut capital spending in response to the plunge in commodity prices.
This report by The Canadian Press was first published May 11, 2020.
Companies in this story: (TSX:ESI)
The Canadian Press