Canadian oil and gas producer Husky Energy Inc on Thursday reported a better-than-expected quarterly profit, helped by higher production and realized prices, and cut its capital budget for the year.
The company said it expects to spend C$2.2 billion to C$2.3 billion ($1.7 billion to $1.80 billion) this year, less than its previous estimate of C$2.5 billion to C$2.6 billion. Husky, like other Canadian oil sands companies, has been trying to cut costs to offset weak demand for its heavy crude and the effect of volatile oil prices. The company reported a 5.6 percent rise in average production to 318,000 barrels of oil equivalent per day in the third quarter, helped by increased output at its thermal bitumen developments. The higher output was complimented by an increase in average realized prices for crude oil to C$40.05 per boe from $33.11 per boe a year earlier. Husky reported net earnings of C$136 million, or 14 Canadian cents per share, which easily beat analysts average estimate of 3 Canadian cents, according to Thomson Reuters I/B/E/S. In the year-ago quarter, Husky posted a net profit of C$1.39 billion, which included nearly C$1.5 billion in asset sale-related gains. On an adjusted basis, it lost C$100 million. The company's funds from operations surged 44 percent in the latest quarter, helped by higher U.S. refining margins. (Reporting by Karan Nagarkatti; Editing by Savio D'Souza)