Cenovus Vitality Inc. is briefly suspending its dividend and reducing its capital spending plan by an extra $150 million on prime of a discount introduced final month.
The corporate says the extra steps are in response to the low world oil worth setting that it expects to proceed for an unknown interval. It had paid a quarterly dividend of 6.25 cents per share.
The reduce to its capital spending plan comes on prime of a $450-million discount made on March 9. Cenovus now expects to spend between $750 million and $850 million this yr.
The corporate can also be forecasting working value reductions of about $100 million and discount to basic and administrative prices of about $50 million in contrast with its December price range.
The corporate is rolling again salaries throughout the corporate, efficient Could 1. President and chief government Alex Pourbaix may have his annual base wage lowered by 25 per cent, whereas different government crew members will take a 15 per cent discount and vice-presidents and their equivalents in technical positions will obtain a 12 per cent reduce. Staff at different ranges may even see a smaller graduated wage impression.
Board members may have their compensation lowered by 25 per cent.