Bri Chem (TSX:BRY)
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From Apr 2020 to Jul 2020
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TSX Symbol "BRY"
EDMONTON, April 24, 2020 /CNW/ - Bri-Chem Corp. ("Bri-Chem" or "Company") (TSX: BRY), a leading North American oilfield chemical distribution and blending company, is providing an update on actions taken in response to the COVID-19 pandemic ("COVID-19"), and current industry conditions. Bri-Chem is responding to the rapidly deteriorating business conditions brought about by the combined impact of COVID-19 and the oil price war among certain OPEC members and Russia. Due to the compounding impacts of the COVID‐19 pandemic and the substantial drop in oil and gas prices worldwide, we are expecting a material reduction of revenue until industry activities improve and customer spending and demand for our services recommences. During this unprecedented time, we will be working with our customers, creditors, suppliers and lenders to manage our financial resources.
Accordingly, Bri-Chem has taken several measures to address the challenges presented, including:
- Cancelation of $1.5M in open purchase orders;
- 20% reduction to Executive and Board of Directors' cash compensation;
- Bri-Chem has initiated 4-day work week schedules for certain divisions with a corresponding 20% wage roll back for salaried employees;
- Reduced warehouse hours of operations across Canada and US and no overtime permitted;
- Elimination of all discretionary spending and travel for all company employees;
- Deferred the payment of rent on 8 warehouses for the months of April and May.
The sharp decline in business activity and the resulting reduction in revenue has been particularly hard on our people and we are taking advantage of every possible measure to retain the significant operational experience in our company while recognizing the realities of the significant decline in demand for our products and services. The Federal Governments of Canada and of the United States have announced wage subsidy programs recently, and we will utilize these, to the extent that we qualify, to reduce the impact of this downturn on our staffing levels going forward.
The business environment continues to remain fluid as a result of these major disruptions. Bri-Chem will continue to monitor both the expected impact and duration of these factors on our business and will continue to adjust our business accordingly.
Bri-Chem has established itself, through a combination of strategic acquisitions and organic growth, as the North American industry leader for wholesale distribution and blending of oilfield drilling, completion, stimulation and production chemical fluids. We sell, blend, package and distribute a full range of drilling fluid products from 26 strategically located warehouses throughout Canada and the United States. Additional information about Bri-Chem is available at www.sedar.com or at Bri-Chem's website at www.brichem.com.
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Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking information or forward-looking statements (collectively, "forward-looking statements"). These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking statements and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this press release contains forward-looking statements relating to the completion of the Filings. Although the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward looking statements because the Company can give no assurance that they will prove to be correct. By their nature, such forward-looking statements are subject to various risks and uncertainties, which could cause actual results to differ materially from the anticipated results or expectations expressed herein. These risks and uncertainties, include, but are not limited to general economic conditions, industry conditions, access to capital markets, volatility of commodity prices, market forces, competition from other industry participants and regulatory conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release or otherwise. Except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
SOURCE Bri-Chem Corp.