Husky Energy cuts 2016 capex for second time amid oil slump

Thu Oct 27, 2016 1:36pm EDT
 
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(Reuters) - Husky Energy Inc (HSE.TO: Quote), Canada's No. 3 integrated oil company, reported a bigger-than-expected quarterly loss and joined larger rival Cenovus Energy Inc (CVE.TO: Quote) in trimming its capital budget for the year.

Oil producers have severely curtailed spending in response to a near 60 percent fall in crude prices since mid-2014.

Husky said it now expects to spend about C$2 billion ($1.49 billion) this year, below its prior forecast of C$2.1 billion to C$2.3 billion.

The company had previously lowered its capital expenditure plan in January from a forecast of C$2.9 billion to C$3.1 billion.

Husky has achieved its target of generating more than 40 percent of its production from projects that have low operating costs and capital requirements, Chief Executive Asim Ghosh said in a statement. [nMKW5ZC9ka]

"And we have many more such projects in the wings," said Ghosh on Thursday, a day after announcing that he would retire on Dec. 5 after seven years at the helm. [nL1N1CX03T]

The company's shares were down nearly 2 percent at C$14.96 in afternoon trading on the Toronto Stock Exchange.

Husky's rival Cenovus Energy also reported a bigger-than-expected third-quarter loss on Thursday and trimmed its 2016 capital spending budget. [nL4N1CX3YK]

Husky's total production fell about 10 percent to 301,000 barrels of oil equivalent per day in the third quarter ended Sept. 30.   Continued...