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2018-10-26 12:05:00

HUSKY NET EARNINGS $545 MLN

HUSKY NET EARNINGS $545 MLN

HUSKY ENERGYHusky Energy Reports Third Quarter 2018 Results

Funds From Operations up 48%, Earnings up 300% Year over Year

Husky Energy generated funds from operations of $1.3 billion in the third quarter, up 48 percent from $891 million in the same period last year. Year-to-date, funds from operations are $3.4 billion.

Free cash flow in the quarter was $350 million and $1.1 billion year-to-date.

Net earnings were $545 million, a 300 percent increase compared to $136 million in Q3 2017. Net debt at the end of the quarter was lowered to $2.6 billion.

"Husky's physical integration allows the Company to benefit fully from strong Brent and WTI prices despite wide location and quality differentials. With committed export pipeline capacity and the flexibility to swing between heavy and light crudes in our refining system, we are maximizing margins across our Integrated Corridor," said CEO Rob Peabody. "Through Husky's high level of integration, and offshore production, we continue to attain higher, global pricing and generate strong free cash flow.

"Our offer to acquire the outstanding shares of MEG Energy utilizes Husky's strong balance sheet and ability to capture higher prices to create a stronger, more competitive Canadian energy company. Husky's third quarter results demonstrate the value potential for MEG shareholders and our ability to achieve financial targets faster than MEG could as a stand-alone company."

OFFER TO ACQUIRE MEG ENERGY

On October 2, Husky made an offer to acquire all outstanding shares of MEG Energy. Husky believes the proposal is in the best interests of both Husky and MEG shareholders. For MEG shareholders the benefits include:

• Physical integration with expanded market access, protection from heavy oil differentials and exposure to high netback offshore operations, providing stability in funds from operations.

• An enhanced shareholder return proposition with lower risk, including a strong investment-grade balance sheet that allows for more free cash flow to be directed towards cash returns to shareholders and growth investments, and the opportunity to participate in Husky's dividend.

• $200 million a year in near-term realizable synergies.

For Husky shareholders, the transaction will be accretive to the Company's free cash flow, funds from operations, earnings and production on a per share basis. Husky's offer remains open for acceptance until January 16, 2019.

THIRD QUARTER HIGHLIGHTS

Corporate

• Net earnings of $545 million

• Funds from operations of $1.3 billion

• Free cash flow of $350 million

• Quarterly cash dividend of $0.125 per common share declared

• Production of 297,000 barrels of oil equivalent per day (boe/day); see detailed guidance sheet at huskyenergy.com

• Net debt at the end of the quarter was $2.6 billion, representing 0.6 times trailing 12 months funds from operations, well below the Company's target

Integrated Corridor

• Commenced production at the Rush Lake 2 Lloyd thermal project, ahead of schedule

• Advanced construction at the Dee Valley Lloyd thermal project, with first oil now expected in Q4 2019, six months ahead of Investor Day target

• Completed a three-week planned turnaround at the Tucker Thermal Project, and has since ramped up to 30,000 barrels per day (bbls/day) peak daily rate

• Downstream EBITDA of $580 million, with Infrastructure and Marketing EBITDA of $206 million, demonstrating continued margin capture from upgrading, refining and long-term committed export pipeline capacity

• Average realized U.S. refining margins of $17.52 US per barrel reflected Husky's flexibility to access discounted WTI Midland crude oil barrels, and included a pre-tax FIFO loss of $0.34 US per barrel

Offshore

• Liwan Gas Project production averaged 371 million cubic feet per day (mmcf/day), with associated liquids averaging 16,500 bbls/day (182 mmcf/day and 8,400 bbls/day Husky working interest), demonstrating continued strong demand despite typhoon season impacts

• Liquids-rich BD Project in the Madura Strait consistently achieving the Company's gross daily target, averaging 100 mmcf/day (40 mmcf/day Husky working interest) of natural gas with 40 percent higher than expected associated liquids production of 10,400 bbls/day (4,200 bbls/day Husky working interest)

• Completed construction on the base slab at the West White Rose Project and began slipforming the column, with topsides construction about 10 percent complete and living quarters 45 percent finished

 

 

More information is here

 

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Earlier:

 

 MEG & HUSKY TAKEOVER: $2.3 BLN
2018, October, 19, 10:35:00

MEG & HUSKY TAKEOVER: $2.3 BLN

BLOOMBERG - MEG Energy Corp. said Wednesday it had rejected a C$3 billion ($2.3 billion) hostile takeover by Husky Energy Inc. and plans to launch a strategic review with an eye to finding another buyer.

 

 HUSKY NET LOSS C$4.1 BLN
2015, November, 3, 19:10:00

HUSKY NET LOSS C$4.1 BLN

"It is evident that the global oil dynamic has experienced a fundamental shift, driven by the resilience in supply," said CEO Asim Ghosh. "Back in 2010, we made the decision to stay diversified, integrated and begin a transition into a low sustaining capital business. In a lower for longer world, our low sustaining capital projects in the Asia Pacific Region, oil sands, heavy oil thermals and Downstream margin business have become even more strategic.

 

 HUSKY RISES 4%
2014, July, 25, 17:55:00

HUSKY RISES 4%

Husky Energy profit rises as production increases

 
 
 
 

 

Tags: HUSKY ENERGY