UPDATE 3-Husky Energy sees cash flow, possible reinstated div on oil rally

Wed Jun 1, 2016 12:58pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Adds details on company performance)

By Eric M. Johnson

CALGARY, Alberta, June 1 (Reuters) - Husky Energy Inc , Canada's No. 3 integrated oil company, expects to generate full-year free cash flow and may reinstate a cash dividend after the recent rally in crude oil prices.

Husky also said it successfully restarted its 30,000-barrel-per-day (bpd) Sunrise project that was shut down beginning on May 7 as a massive wildfire threatened the oil sands region in northern Alberta.

The blaze cut Canadian oil output by 1 million barrels a day, though some producers have resumed operations. Evacuees from the key city of Fort McMurray began returning home on Wednesday.

The company said it could maintain production if crude prices hovered around $30 per barrel, though it expects to generate about C$800 million ($611 million) in full-year free cash flow if oil stayed at $50 on an annualized basis.

Cash flow for the first quarter 2016 was about C$410 million. For the year ended in 2015, it was C$3.3 billion.

Its cash flow forecast comes as oil producers have suffered from a rout in crude prices since 2014, though prices have rebounded in recent weeks. Crude futures dropped 0.6 percent to $48.78 on Wednesday.

Husky, controlled by Hong Kong billionaire Li Ka-shing, also operates in southeast Asia, and holds numerous exploration licenses off Canada's Atlantic shore.   Continued...