Husky, Stung by Canada Oil Crash, Gets Relief From U.S. Tax CutsBy
Heavy Canadian crude discount to WTI was most in 4 years
Tax cuts help boost earning in refineries in the U.S.
Husky Energy Inc. got some relief from the tax law changes in the U.S. as the Calgary-based company battled the slump in heavy crude prices at home.
The decline in cash flow from heavy Canadian crude was partially offset as the refineries in Ohio and Wisconsin benefited from the cheaper grade, Robert Peabody, chief executive officer, said in a conference call Thursday. As earnings shifted from Canada to the U.S. refineries, the reduction in company’s tax burden in the U.S. helped boost income, he said.
Husky, which produces oil in Alberta and Saskatchewan and operates refineries in the U.S. and Canada, reported fourth quarter free-cash flow rose 8.5 percent versus a year earlier. Heavy Western Canadian Select’s discount to U.S. benchmark West Texas Intermediate grew to more than $30 a barrel last month from about $15 in mid November. The discount traded just under $25 a barrel on Thursday versus an average of about $13 a barrel all of last year.