Husky Energy profit falls on lower production, crude prices

Tue Jul 24, 2012 8:59am EDT
 
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(Reuters) - Husky Energy Inc (HSE.TO: Quote), Canada's No.3 integrated oil producer and refiner, reported a 36 percent fall in second-quarter profit on lower production and weaker realized crude oil prices.

Husky, controlled by Hong Kong billionaire Li Ka-shing, chairman of Hutchison Whampoa Ltd 0013.HK and Cheung Kong (Holdings) Ltd (0001.HK: Quote), produces oil and gas in Canada and Southeast Asia and operates refineries in British Columbia and Ohio.

Net income fell to C$431 million ($423.6 million), or 43 Canadian cents per share, from C$669 million, or 71 Canadian cents per share, a year earlier.

The company, a dominant producer of heavy crude in Western Canada, earned 45 Canadian cents per share on an adjusted basis, down from 72 Canadian cents per share a year earlier.

In the April-June quarter, U.S. crude oil prices fell 9 percent from a year earlier to average $93 per barrel. Natural gas prices have fallen 46 percent to average $2.4 per million British thermal unit.

Production averaged 281,900 barrels of oil equivalent per day (boe/d), down from 311,600 boe/d in the year-ago quarter, the company said.

Cash flow, a key indicator of the company's ability to fund new projects and drilling, fell to C$1.15 billion, or C$1.17 per share from C$1.51 billion, or C$1.67 per share, a year earlier.

The company said its 60,000 barrel a day Sunrise oil sands project in northern Alberta, a joint venture with BP Plc (BP.L: Quote), was on track for first production in 2014.

The SeaRose floating production, storage and offloading vessel is expected to return to operations with production ramping up in the third quarter as per schedule, the company said.   Continued...

 
Asim Ghosh, president and CEO of Husky Energy, addresses shareholders at the company's annual general meeting in Calgary, Alberta, April 26, 2012. REUTERS/Todd Korol