Newalta to spend less on growth projects next year due to underused inventory

CALGARY – The Newalta environmental services company, which helps recover valuable material from waste produced by the oil and gas industry, says it will spend less on growth projects next year.

The Calgary-based company (TSX:NAL) said Monday it has about $50 million of underutilized equipment in inventory.

As a result, it will reduce its budget for growth capital to between $20 million and $30 million in 2016, down from $70 million this year.

It will also spend $10 million on maintenance capital, the same as 2015.

Newalta says it expects to benefit next year from new facilities that came on stream in the second half of 2015 and from measures that lowered costs by an annualized rate of $40 million.