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Husky Energy profit rises 11.5 percent on increased production

Published 23/10/2014, 19:36
HSE
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(Reuters) - Canadian oil and gas producer Husky Energy Inc reported an 11.5 percent rise in quarterly profit, helped by a 10 percent increase in production.

Canada's No.3 integrated oil company, controlled by Hong Kong billionaire Li Ka-shing, said total production rose to 341,000 barrels of oil equivalent per day (boepd) in the third quarter ended Sept. 30, from 309,000 boepd a year earlier.

The increase was driven by higher volumes from Husky's deepwater Liwan Gas Project in the South China Sea, which came onstream earlier this year, and a strong performance from heavy oil thermal projects, the company said on Thursday.

Cash flow, a measure of its ability to pay for new projects, fell less than a percent to C$1.34 billion (744.43 million pounds).

Husky owns all or part of four refineries in North America and operates a heavy oil upgrader at Lloydminster, Saskatchewan. The company's Toledo, Ohio refinery is a 50/50 joint venture operated by BP Plc.

Average throughput at the company's downstream refineries and its Lloydminster upgrader rose 11 percent to 334,000 barrels per day.

Husky said its Lima, Ohio refinery, which produces light sweet crude oil, has been running at reduced rates of about 110,000 barrels per day since Oct. 16 due to unplanned interruptions on third-party feedstock pipelines.

The company's third-quarter net income rose to C$571 million, from C$512 million a year earlier.

Net income was flat on a per share basis at 52 Canadian cents per share.

The Calgary, Alberta-based company's shares closed at C$27.90 on the Toronto Stock Exchange on Wednesday.

(Reporting by Scott Haggett in Calgary and Sneha Banerjee in Bangalore; Editing by Simon Jennings)

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