Canada's Husky Energy Swings To Loss, Says Has Cut 1,400 Jobs


Oct 30 (Reuters) - Husky Energy Inc, Canada's No. 3 integrated oil company, swung to a loss in the third quarter due to after-tax impairment charges of C$3.8 billion ($2.9 billion) related to a gloomier long-term outlook for oil and gas prices.

The company said it had cut about 1,400 jobs, or about 17 percent of its workforce, so far this year and could make further "adjustments" if necessary. (

Husky, controlled by Hong Kong billionaire Li Ka-shing, said that in addition to the impairment charges it wrote down C$167 million against legacy oil and gas assets in Western Canada.

Calgary-based Husky, which will pay a third-quarter dividend of 30 Canadian cents per share, also said it would pay the fourth-quarter dividend in shares.

RBC Capital Markets analysts said the move to pay dividends in shares was negative for the stock, which was down more than 8 percent to C$18.61 in early trading on Friday.

Husky's adjusted loss of 10 Canadian cents per share also exceeded the average analyst estimate of 7 Canadian cents, according to Thomson Reuters I/B/E/S.

With oil prices down almost 60 percent since June last year, Husky and peers Cenovus Energy Inc and MEG Energy Corp have cut capital spending and other costs, even as they boost production in the high-cost Canadian oil sands.

Husky started steam operations last month at the second of two processing plants at its Sunrise project in Alberta, a joint venture with BP Plc.

In the latest quarter, the company's total production fell 2.3 percent to 333,000 barrels of oil equivalent per day (boepd), while refinery and upgrader throughput fell 13 percent to 291,000 barrels per day.

Husky reported a net loss of C$4.1 billion, or C$4.19 per share, for the quarter, compared with a profit of C$571 million, or 52 Canadian cents per share, a year earlier. It also posted a profit in the second quarter.

Up to Thursday's close, Husky's shares had fallen more than 25 percent in the past 12 months.

($1 = C$1.3143)

(Reporting by Nia Williams and Shubhankar Chakravorty; Editing by Saumyadeb Chakrabarty and Ted Kerr)

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
United States Houston: Account Rep, Bus Dev, Sr
Expertise: Business Development|Sales
Location: Houston, TX
Business Development Manager
Expertise: Business Development|Construction Manager|Sales
Location: Tempe, AZ
SXL- Manager, Business Development
Expertise: Business Development
Location: Newtown Square, PA
search for more jobs

Brent Crude Oil : $50.47/BBL 0.98%
Light Crude Oil : $49.72/BBL 1.09%
Natural Gas : $2.76/MMBtu 1.09%
Updated in last 24 hours