Husky profit rises on higher refining margins
Husky Energy Inc. earned a net profit of $474 million for the last three months of 2012 due to securing higher prices for its crude oil.
Husky earned $408 million during the corresponding period the previous year.
The company reported a 16 per cent rise in fourth-quarter net profit as cheaper crude oil fattened refining margins.
Husky has taken advantage of a wide gulf between the price of oil in the glutted North American interior and expensive imported crude.
Dear Beacon readers. Please help us serve you better by filling out this brief survey form. We thank you for your feedback and your commitment to local online news.
“We realized significant progress across all of our business segments in 2012 as we continued to rejuvenate our foundation in heavy oil and Western Canada and advance the Liwan Gas and Sunrise Energy Projects toward first production,” said Husky’s CEO Asim Ghosh.
“Steady, consistent execution of the company’s balanced growth strategy resulted in strong returns across the business.”
Cash flow, a key measure of its ability to pay for new projects and drilling, rose 18 per cent to $1.41-billion, or $1.44 per share.
Production averaged 319,300 barrels of oil equivalent per day (boe/d), almost flat from a year earlier, while realized refining margins averaged $16.24 per barrel, compared with $14.80 a year earlier.
- Annual production averaged 301,500 boe/day compared to 312,500 in 2011. Fourth quarter production was 319,300 boe/day, up from 285,000 boe/day in the third quarter following the SeaRose FPSO ramp up
- Net earnings in the fourth quarter were $474 million, or $0.48 per share (diluted), compared to $408 million, or $0.42 per share (diluted) in the year-ago period
- Cash flow from operations in the fourth quarter was $1.4 billion, or $1.44 per share (diluted), compared with $1.2 billion, or $1.24 per share (diluted) in 2011
- Net earnings for the year were $2 billion, or $2.06 per share (diluted), compared to $2.2 billion, or $2.34 per share (diluted) in 2011
- Cash flow from operations for the year of $5 billion in 2012, or $5.13 per share (diluted), compared with $5.2 billion, or $5.58 per share (diluted) in 2011
- Throughput at the Company’s refineries and upgrader averaged 327,000 bbls/day in 2012 compared to 317,000 bbls/day in 2011. Fourth quarter through put averaged 335,000 bbls/day compared to 324,000 bbls/day in the year-ago period
Category: Oil & Gas