Business
Trican Reports Third Quarter Results for 2020
Calgary, Alberta--(Newsfile Corp. - November 6, 2020) - Trican Well Service Ltd. (TSX: TCW) ("...
About this update from Trican Well Service Ltd.
[{"type":"text","content":"Trican Reports Third Quarter Results for 2020Calgary, Alberta--(Newsfile Corp. - November 6, 2020) - Trican Well Service Ltd. (TSX: TCW) (\"Trican\" or the \"Company\") is pleased to announce its third quarter results for 2020. The following news release should be read in conjunction with Management's Discussion and Analysis (\"MD&A\"), the unaudited interim consolidated financial statements and related notes of Trican for the three and nine months ended September 30, 2020, as well as the Annual Information Form for the year ended December 31, 2019. All of these documents are available on SEDAR at www.sedar.com.HIGHLIGHTSThe negative impact of the COVID-19 health pandemic and volatility of commodity prices (collectively \"Market Events\") continue to significantly affect the energy industry and the Company. Trican has adapted quickly to the changing market conditions, and we are confident that our resilient culture and strong financial position will ensure the Company remains well positioned through these unprecedented times. Financial position and liquidity:Cash and cash equivalents of $5.1 million (December 31, 2019 - $7.2 million); Positive non-cash working capital of $49.0 million (December 31, 2019 - $132.6 million which includes $38.1 million of assets held for sale); Long-term loans and borrowings of $1.5 million (December 31, 2019 - $46.2 million);At September 30, 2020, the Company is in compliance with all terms of the revolving credit facility. The Company expects to maintain compliance with bank covenants and will have sufficient available liquidity during the next year to support its ongoing operations. In the third quarter, $4.2 million was recognized in relation to the Canada Emergency Wage Subsidy (\"CEWS\") as part of the federal government of Canada's response to the COVID-19 health pandemic. Had the CEWS program not been available, the Company would have had to make incremental significant personnel reductions to mitigate negative financial results;Trican is forecasting a $45 million reduction in fixed overhead and administrative expenditures relative to 2019 levels, excluding the effect of severance costs. The savings are primarily a result of permanent structural changes to drive efficiencies across the Company, as well as temporary cost reductions resulting from the Market Events.Planned capital expendit...