November 4, 2010 / 6:43 PM / 8 years ago

UPDATE 1-Husky Energy boosts spending as profit falls

* Q3 EPS C$0.30, down 24 pct

* Capital spending raised 29 pct

* Production climbs 1.8 pct

* Shares up C$0.53 at C$26.08 in Toronto (Adds details)

CALGARY, Alberta, Nov 4 (Reuters) - Husky Energy Inc (HSE.TO) said on Thursday its third-quarter profit fell 24 percent as it struggled with the impact of Enbridge Inc’s (ENB.TO) U.S. oil pipeline outages, but the company raised its spending budget for the year by C$900 million ($898 million).

Spending is now pegged at C$4 billion, up 29 percent, as Canada’s No. 3 oil producer and refiner advances projects that it said provide lucrative near-term potential, including those involving liquids-rich natural gas.

Husky, controlled by Hong Kong billionaire Li Ka-shing, reported net income of C$257 million, or 30 Canadian cents a share, down from C$338 million, or 40 Canadian cents, in the third quarter of 2009.

Adjusted earnings, which exclude most one-tine items, fell 20 percent to C$260 million, or 31 cents a share, from C$325 million, or 38 Canadian cents a share.

The result was close to the analysts’ average forecast for the measure of 32 Canadian cents, as compiled by Thomson Reuters I/B/E/S.

Husky, led by new Chief Executive Asim Ghosh, produces oil in Canada and Southeast Asia and owns refineries in British Columbia and Ohio. It is also planning an oil sands project in northern Alberta called Sunrise with partner BP Plc (BP.L).

It said it expects to sanction the C$2.5 billion project before the end of this year.

Earnings fell due to a two-month maintenance outage at the company’s 82,000 barrel a day Lloydminster heavy oil upgrader, and the impact on U.S. refining operations from the shutdowns of Enbridge’s Lines 6A and 6B, it said.

The company said production in the quarter rose 1.8 percent to 289,000 barrels of oil equivalent per day.

Husky shares were up 53 Canadian cents, or 2 percent, at C$26.08 on the Toronto Stock Exchange on Thursday afternoon. The shares had dropped 8.1 percent over the previous 12 months.

$1=$1.00 Canadian Reporting by Jeffrey Jones; editing by Peter Galloway

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