Nov. 1 (Bloomberg) -- Husky Energy Inc., the integrated oil and natural gas producer controlled by Hong Kong billionaire Li Ka-Shing, said third-quarter profit rose as increased refining activity offset production cuts.
Net income rose to C$526 million ($526.2 million), or 53 cents a share, from $C521 million, or 53 cents, a year earlier, the Calgary-based company said in a statement on its website today. Adjusted for after-tax gains on the sale and exchange of assets, per-share profit was 12 cents more than the 40-cent average of 11 analysts’ estimates compiled by Bloomberg.
Husky is among producers with U.S. Midwest refineries that capture higher downstream profits when North American crudes are discounted. Prices for U.S. crude benchmark West Texas Intermediate averaged $92.20 a barrel during the quarter, versus $109.42 a barrel for international-benchmark Brent.
The company’s refining margins in the U.S. rose to $24.36 a barrel compared with $16.13 a year earlier. Husky’s higher refinery throughput and greater margin is in line with results from other integrated oil companies that have reported this quarter, Randy Ollenberger, an analyst at BMO Capital Markets Ltd. in Calgary, said in a note today.
Revenue after royalties fell 9 percent to C$5.31 billion from a year ago.
Average output declined 7.8 percent to the equivalent of 285,000 barrels of oil a day due to planned maintenance at Husky’s operations off the coast of Newfoundland.
The Terra Nova field will start back up in the fourth quarter, later than previously expected, Husky said today. The field, down since June 8, was forecast to be offline for 21 weeks. Downtime at two floating facilities in the White Rose and Terra Nova fields will reduce annual output by 16,000 barrels a day, Asim Ghosh, Husky’s chief executive officer, said on a July 24 call.
Li owns about 70 percent of Husky, according to data compiled by Bloomberg. The shares rose 3.6 percent to C$28.03 at the close in Toronto, the most since Aug. 3.
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