Husky Energy Quarterly Profit Rises on Higher Output and Prices
Net income advanced to C$605 million ($587 million) or 59 cents a share, from C$431 million, or 43 cents, a year earlier, the Calgary-based company said in a statement on Marketwired today. Excluding one-time items, per-share profit exceeded the 58-cent average of 10 analysts’ estimates compiled by Bloomberg.
Husky is among integrated energy companies that can lessen the effects of higher costs to supply its refineries with increased returns on oil output. Husky is seeking to boost equivalent oil production 5 to 8 percent in each of the next four years, including with the Sunrise oil-sands project and Liwan offshore gas development in the South China Sea.
“For the integrated oils, we expect total corporate earnings to be up 28 percent versus the same period last year as stronger crude prices and higher production levels outweigh narrower North American refining margins,” Randy Ollenberger, an analyst at BMO Capital Markets in Calgary, said in a July 21 note to clients about Canadian energy earnings.
Total upstream production climbed to 310,000 barrels of oil equivalent a day from 282,000 barrels a day in the year-earlier quarter.
Spot prices for Western Canada Select, the heavy-oil benchmark that includes oil-sands crude, rose 5.4 percent to average $77.48 a barrel in the quarter from a year earlier, according to figures compiled by Bloomberg. U.S. per-barrel refining margins narrowed 15 percent during the quarter, while the Canadian so-called crack spreads dropped 17 percent, Ollenberger said.
Husky, which is 70 percent controlled by Li, according to data compiled by Bloomberg, released results before the start of regular trading on North American markets. The shares fell 1.1 percent to C$29.58 at the close in Toronto yesterday. The company has four buy, 12 hold and 1 sell recommendations from analysts. Husky is little changed this year.
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