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Husky Suspends Dividend, Cuts Spending as Oil Rout Deepens

Company's 2016 spending cut to C$2.1 billion-C$2.3 billion
Morgan Stanley sees Canadian producers cutting capex 35%-40%

By

Carlos Caminada

January 19, 2016, 10:11 PM UTCUpdated onJanuary 20, 2016, 5:01 AM UTC

Husky Energy Inc., the Canadian energy company controlled by Hong Kong billionaire Li Ka-Shing, said it’s suspending fourth-quarter dividend payments and reducing spending as the oil-price collapse worsens.

The company plans to spend C$2.1 billion to C$2.3 billion ($1.44 billion to $1.58 billion), down from a previous estimate of C$2.9 billion to C$3.1 billion, Husky said in a statement Tuesday. It’s also considering the partial sale of some pipelines and storage terminals in the Lloydminster region in Western Canada.