Eco board and management slash own wages

  • Business & Finance

The board and management of oil firm Eco Atlantic have voluntarily taken pay cuts of up to 40 percent to push forward its cost-cutting program attempting to mitigate COVID-19 and oil price drop effects.

Eco said on Wednesday that its board and management would take pay cuts of up to 40 percent from April 2020 and this would be kept under review on a monthly basis thereafter.

The company added that it was continuing to take all of the recommended measures to protect the welfare of its personnel in light of the COVID-19 pandemic.

“Ensuring the safety of employees remains a major priority for the business and the company has taken steps to secure their health, safety, and well-being at this difficult time. As such, Eco has curtailed all travel and has installed a company-wide work from home policy until such time as Government restrictions are lifted,” Eco stated.

Given the recent lower oil price environment and current market conditions, since February 2020, Eco has undertaken a strict cost-cutting program across all aspects of the business, aside from the necessary maintenance of certain operations.

According to the company, these include termination of non-core services and cessation of business-related travel.

“The company continues to monitor its operating budget for 2020 and to work closely with its partners to discuss and plan the next steps. To date, Eco has met all of its work commitments for 2020 under the various petroleum agreements offshore Guyana and Namibia, and thus only minimal costs are expected to be incurred over the remainder of the year,” the oil company said.

As of March 31, the company continues to benefit from its strong balance sheet, with cash and cash equivalents of $18.8 million and zero debt.

Eco claims that it remains fully-funded for its share of further appraisal and exploration drilling at Orinduik block offshore Guyana, up to $120 million gross.

In light of the cost-cutting measures, the company believes that it will be in a robust position to progress its exploration strategy when market conditions improve and operations can resume.

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