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Husky Energy (HSE), one of Canada’s largest integrated energy companies, reported it's second quarter 2017 earnings on Friday. Higher oil prices and increased in production enabled HSE to report a smaller loss. The company's second-quarter production rose to 320,000 barrels of oil equivalent per day (boed), from 316,000 boed, a year earlier.

Husky was able to benefit with oil prices rising up over $50 for most of the quarter Husky realized C$41.48 per barrel of oil equivalent (boe) in the second quarter, up from C$34.59 per boe a year earlier.

Earnings:  Net loss of C$93 million ($73.89 million), or 10 Canadian cents per share compared with a loss of C$196 million, or 20 Canadian cents a share, a year earlier.

Reaction: Husky Energy Inc (USA) TSE: HSE  Jul 21 Close 14.21CAD -0.40 (-2.74%)

The year-ago quarter Husky incurred a C$105 million after-tax loss after one of company's pipelines leaked into a river in Saskatchewan. The clean up cost Husky C$107 million including dispositions, property impairment and asset write-downs. Saskatchewan still reserves the right to lay charges.

With regard to the line Peabody said Husky expects to receive permission to repair it and will change its design and monitoring equipment before restarting it.

Operational Highlights

  • Commenced testing and commissioning of liquids-rich BD Gas Project offshore Indonesia
  • Approved the West White Rose development; first oil expected in 2022
  • New oil discovery at Northwest White Rose
  • Completed planned turnarounds at the Lloydminster Upgrader and asphalt refinery

Husky Looking For Opportunities

The crash in oil and gas prices has particularly hurt Canada, it has also provided opportunity which Chief Executive Officer Rob Peabody said on Friday they are investigating in his earnings conference call. 

"Any action acquisition has to compete with what we consider our very strong organic investment portfolio," Peabody said 

Things investors need to consider are the Bank of Canada just raised rated for the first time in 10 years. This is despite falling inflation and housing market that is plummeting. Oil prices have also failed to get out of that $43-48 WTI and $47 to 50 Brent price range for a while also.

Chief Financial Officer Jonathan McKenzie added: "What you won't see us do is something that's off strategy or outside of sort of the existing operating areas that we're in."

Husky is controlled by the Hong Kong billionaire Li Ka-Shing with 40.2% of CK Hutchison Holdings, his Cayman Islands-registered conglomerate headquartered in Hong Kong. 

Source: Husky Energy Press Release

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