Husky Energy profit surges 32% helped by higher oil prices

Husky Energy Inc reported a 32 per cent rise in quarterly profit on Friday, as higher prices and the Canadian oil and gas producer’s investment in a number of refineries and pipeline space boosted its margins per barrel.

Husky said average realized prices rose to $47.20 per barrel of oil equivalent (boe) in the first quarter, from $40.87 per boe a year earlier.

Canadian heavy crude prices surged to an average US$42.53 a barrel in the first quarter, more than doubling from the previous quarter, and up 10 per cent from the year-ago quarter.

Husky’s position as an integrated oil producer has helped the company benefit from rising Canadian crude prices due to easing of oil glut following Alberta’s production cut and tightness in global heavy sour oil supply due to decline in Venezuelan, Mexican crude in the market.

The Calgary-based company’s average quarterly production fell to 285,200 barrels of oil equivalent per day (boe/d) from 300,400 boe/d.

Net income rose to $328 million ($243.1 million), in the first quarter ended March 31, from $248 million, a year earlier.

The company’s said free cash flow in the quarter was down 43 per cent to $147 from a year ago.

© Thomson Reuters 2019

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