Oct 10 Gasfrac Energy Services Inc said on Wednesday it expected its third-quarter revenue to be C$40 million (US$40.87 million), much below analysts' expectations, and said it had cut jobs to reduce costs.
Analysts, on average, had expected revenue of C$58 million, according to Thomson Reuters I/B/E/S.
Gasfrac also said in a statement that it had hired a search firm to help locate a new chief executive, and that it expected to complete the process within three to four months. Gasfrac is an oil and gas technology services company headquartered in Calgary, Alberta, Canada.
The company, which operates in the United States and Canada, said it expected about 60 percent of its revenue to come from Canadian operations because a major well in the United States had been closed for most of September.
Gasfrac, which last month began reviewing its operations, said it had cut 20 percent of its staff in Canada and 25 percent of its U.S. staff. The company did not specify the number of jobs that represented, and a representative was not immediately available to comment beyond the statement.
The company's shares closed at C$1.78 on Wednesday on the Toronto Stock Exchange.