CIBC downgrades Calfrac as oil price rout set to eliminate oilfield services dividends – FINANCIAL NEWS-ecozik.com
Home / Financial News / CIBC downgrades Calfrac as oil price rout set to eliminate oilfield services dividends

CIBC downgrades Calfrac as oil price rout set to eliminate oilfield services dividends

Fernando Aguilar, rresident and CEO of Calfrac Well Services Ltd. CIBC downgraded Calfrac on expectation the company will cut its dividend to zero.

CALGARY – To survive the prolonged downturn in oilfield activity, many energy service companies are poised to cut their dividends to zero.

“Despite two-thirds of our coverage universe having already made sizable dividend cuts in the last year, we believe more are on the horizon within the coming quarters,” CIBC World Markets analyst Jon Morrison said in a research note.

The companies Morrison expects to make further cuts start adding some of the most popular oilfield service companies in Canada, like Precision Drilling Corp., Ensign Energy Services Inc. and Calfrac Well Services Ltd.

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