LNG Ltd announces job cuts

Liquefied Natural Gas Ltd (LNG Ltd) has announced a number of staff reductions in an attempt to streamline the organisation so that it has a lower, more sustainable fixed cost base.

The changes reflect a combination of redundancy and restructuring measures. LNG Ltd said that it would keep a strong focus on marketing of liquefaction capacity in its projects.

The changes lead to a reduction of three employees and one consultant in Australia, one Indonesia-based employee, and six US-based employees. Two additional US-based employees were released from their employment in the last 45-days.

LNG Ltd confirmed that, in aggregate, the 13 people had salaries (inclusive of the consultant’s fees) of approximately AUS$4.2 million annually.

Included in the reduction is the release of Mr David Gardner from his role as Joint Company Secretary. Ms Kinga Doris will continue in her role as General Counsel and Company Secretary and the company will announce arrangements to cover the duties of the Joint Company Secretary in due course.

LNG Ltd’s CEO, Greg Vesey, said: “My 100-day review of the business highlighted the need to make some tough decisions. This is a great company, with a great history, and great potential. However, the LNG industry as a whole continues to be a difficult market, and it is apparent that we have to reduce overhead costs in certain areas […] Regrettably, these changes mean job losses at the executive level, in the corporate office, and in divisional offices. I thank all the impacted individuals for their service and support over the years.”

Mr Vesey added: “Our focus on offtake customers will not be impacted by the restructuring. We remain committed to our ‘Energy Link’ strategy and believe LNG Ltd is well positioned to deliver value to our shareholders.”

LNG Ltd confirmed that all affected employees will receive payments consistent with their individual employment agreements, and/or statutory requirements, and/or discretionary payments commonplace in local jurisdictional practice. These payments aggregate approximately AUS$2 million, of which approximately AUS$703 000 was paid prior to 30 June 2016.

Edited from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/liquefaction/21072016/lng-ltd-announces-job-cuts-2796/