Husky Energy profit tops estimates on higher output, prices
(Reuters) - Husky Energy Inc (HSE.TO: Quote), Canada's No. 3 integrated oil company, reported a better-than-expected quarterly profit as production rose and the company realized higher prices.
Husky, however, said reduced volumes due to a planned shutdown at the Terra Nova oil field, off Newfoundland, will hurt third-quarter production.
Heavy oil producer Husky holds a 13 percent working interest in Terra Nova, which is operated by Suncor Energy Inc (SU.TO: Quote).
Husky, controlled by Hong Kong billionaire Li Ka-shing, said the C$6.5 billion Liwan Gas project in the South China Sea was on track to start production between late 2013 and early 2014.
The field lies 300 kilometers (186 miles) southeast of Hong Kong and will supply as much as 500 million cubic feet of gas per day to the Chinese market.
All nine wells at Liwan 3-1 are complete and ready for production, the company said.
Husky has been developing Liwan 3-1, the largest ever natural gas discovery offshore China, in partnership with CNOOC (0883.HK: Quote).
Husky's net income in the second quarter rose to C$605 million ($588.1 million), or 59 Canadian cents per share, from C$431 million, or 43 Canadian cents per share, a year earlier.
On an adjusted basis, the company earned 62 Canadian cents per share, topping analysts' average expectation of 57 Canadian cents per share, according to Thomson Reuters I/B/E/S. Continued...