Atlantic to offer VSEP to workers

In a media release yesterday, the company said it was facing the “toughest period” in its 20-year history, as global LNG prices remained at “depressed levels” while experiencing “unprecedented” levels of gas-supply shortfall.

“Over the last two years, the severe gas supply shortages have resulted in facility utilisation rates of less than 70 per cent,” Atlantic said.

“Recognising the need to respond to the gas shortages, to streamline its activities and ensure it remains efficient in the new environment, Atlantic has conducted a comprehensive review of its business __ part of which has included a review of the required resources.” It said “regrettably” Atlantic would be reducing its permanent staff, but this was expected to be by fewer than 50 people, or approximately seven per cent, and it was hoped the reduction could be achieved “as far as possible” by voluntary separation. In an immediate response, former energy minister Kevin Ramnarine said that the company’s VSE P offer was a “sign that companies are adjusting to the new normal” of lower energy prices.

In a text message, Ramnarine expressed confidence in the company’s management saying, “Atlantic is a well-run company with a good leadership team. I’m sure they will make the best decisions to guarantee the viability of the company going forward.” Another former energy minister Conrad Enill said the VSE P offer was another sign that the industry was “right-sizing itself” to the present economic situation.

In a telephone interview yesterday, Enill said he was not surprised given the reduced gas supplies and revenue earnings.

“Any other reductions in the energy- sector workforce would not surprise me,” he added, “because the energy streams are not there to support the level of expenditure that we as a country are accustomed to.”