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Husky Energy Reports Third Quarter 2019 Results

Gasoil News - Published on Fri, 01 Nov 2019

Image Source: energynow.ca
Husky Energy continued to execute its 2019 business plan in the third quarter, with the delivery of all planned milestones in the Integrated Corridor and Offshore businesses. Funds from operations were $1 billion, compared to $1.3 billion in the third quarter of 2018. Net earnings were $273 million. Cash flow from operating activities, including changes in non-cash working capital, was $800 million, compared to $1.3 billion in the third quarter of 2018. The reductions in funds from operations and net earnings include impacts from lower crude oil prices and lower U.S. refining margins.

CEO Rob Peabody said “We achieved all of the milestones for the third quarter as set out at Investor Day in May, and remain on track for the rest of the year. We also saw our work to enhance process safety translate to improved reliability across the business. In the Integrated Corridor, we started up our latest 10,000 barrel-per-day Saskatchewan thermal bitumen project at Dee Valley, which has already reached its nameplate capacity. We began the final tie-in of the Lima Refinery crude oil flexibility project, received permits to commence the Superior Refinery rebuild, and reached an agreement to sell the Prince George Refinery. In the Offshore business, the SeaRose floating production, storage and offloading vessel is back up to full rates, the Liuhua 29-1 project in China is 65% complete, and the West White Rose Project is now 52% complete. In line with the reduced capital program set out at Investor Day in May 2019, earlier this week Husky took steps to further align its organization and workforce.

THIRD QUARTER HIGHLIGHTS

Funds from operations of $1 billion, compared to $1.3 billion in the year-ago period

Cash flow from operating activities of $800 million, compared to $1.3 billion in the third quarter of 2018

Net earnings of $273 million, compared to net earnings of $545 million in Q3 2018

Capital spending of $868 million was directed towards advancing the Saskatchewan thermal portfolio, the Lima crude oil flexibility project, and progressing construction of the Liuhua 29-1 field offshore China and the West White Rose Project in the Atlantic region. Capital expenditure guidance for 2019 remains unchanged at $3.3-$3.5 billion

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Posted By : Rabi Wangkhem on Fri, 01 Nov 2019
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