Husky Quarterly Profit Falls on Lower Prices as Output Rises

Husky Energy Inc. (HSE), the integrated oil natural gas producer controlled by Hong Kong billionaire Li Ka- Shing, said first-quarter profit fell as prices for crude oil, natural gas liquids and bitumen fell.

Net income declined to C$535 million ($533 million) or 54 cents a share, from C$591 million, or 60 cents, a year earlier, the Calgary-based company said in a statement on Marketwired today. Excluding one-time items, per-share profit was 3 Canadian cents more than the 53-cent average of 11 analysts’ estimates compiled by Bloomberg.

As Husky seeks to increase oil production 5 percent to 8 percent in each of the next four years, the company is boosting the amount of western Canadian crude it can process at refineries in the U.S. Midwest. Husky benefits from lower costs of Canadian heavy crude at its refineries and upgrader, which converts it into light oil.

The price of Western Canada Select, the Canadian heavy crude benchmark, fell 12 percent from a year earlier to average $66.99 a barrel in the quarter, according to data compiled by Bloomberg.

Output averaged the equivalent of 321,000 barrels of crude a day from 320,000 a year earlier.

Husky, which is 70 percent owned by Li according to data compiled by Bloomberg, released results before the start of regular trading on North American markets. The company rose 2.4 percent to C$29.92 yesterday in Toronto. The shares have one buy, 16 hold and three sell recommendations from analysts.

To contact the reporter on this story: Rebecca Penty in Calgary at rpenty@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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