Covia announced a series of actions taken recently to strengthen safety protocols, reduce capacity and lower costs. These actions have been taken in light of the challenges caused by the COVID-19 pandemic and recent dislocations in global oil markets. These actions include:
- Developed and implemented a series of guidelines and practices to improve safe operating procedures throughout the organization to mitigate the spread of COVID-19.
- Eliminated non-essential travel and facilitated work from home arrangements.
- Reduced active Energy capacity by nearly 30% or 6 million tons annually, including the idling of the Utica, Ill., and Kermit, Texas, facilities and de-rating capacity at several other facilities.
- Implemented staffing reductions and other initiatives to reduce overhead expenses by approximately $25 million compared to 2019.
- Reduced the expected 2020 capital expenditure program approximately 50% compared to 2019.
- Closed on a new three-year credit facility with availability up to $75 million secured by certain of the company’s accounts receivables.
“The health and safety of our employees is a top priority, and I am proud of how quickly our organization reacted to continue safe operations in light of the impact of the COVID-19 pandemic,” said Richard Navarre, chairman, president and chief executive officer. “Unfortunately, the pandemic, combined with the collapse of oil prices, has had a negative impact on the markets we serve forcing us to take painful, but necessary steps, to adjust our operations to better align with market demand. These actions better position Covia to successfully navigate the current market without impacting our ability to meet the needs of our customers.”