UPDATE 1-Husky Energy makes first major Canadian crude sale to India

Wed Feb 12, 2014 12:56pm EST
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By Scott Haggett

CALGARY, Alberta Feb 12 (Reuters) - Husky Energy Inc , Canada's third-largest integrated oil producer, said on Wednesday it made the first major sale of Canadian crude oil to India in the fourth quarter, even as its profit in the period dropped on weak refining results.

The company, controlled by Hong Kong billionaire Li Ka-shing, sold 1 million barrels of crude oil from its White Rose field, off the coast of Newfoundland, in the quarter to state-owned refiner Indian Oil Corp.

The sale is the first substantial shipment of Canadian crude to the subcontinent, giving the company a new customer for its offshore production as North American refiners increase their use of cheaper inland oil. The light oil from the field can now be used in all the Indian refiner's facilities.

"This was a test sale of a certain quality of crude," Asim Ghosh, Husky's chief executive, said on a conference call. "We are now qualified for the state-owned (refining) sector in India."


Husky said net income in the fourth quarter of 2013 fell to C$177 million ($160.28 million), or 18 Canadian cents per share, from C$474 million, or 48 Canadian cents, a year earlier.

Adjusted earnings, which exclude most one-time and unusual items, fell 15 percent to C$412 million, or 42 Canadian cents per share, but beat the average analyst estimate of 38 Canadian cents per share, according to Thomson Reuters I/B/E/S.   Continued...