Husky Energy Inc’s loss narrows as cost cuts cushion oil crash

Husky Energy Inc, Canada’s No. 3 integrated oil company, posted a smaller-than-expected quarterly loss as cost cuts help cushion the impact from slumping crude oil prices.

The company posted a loss of revenue of $69 million, or 9 cents per share, for the fourth quarter, compared with a loss of revenue of $603 million, or 65 cents per share, last year.

The year-ago quarter included a non-cash control of $622 million related to the impairment of certain mature assets.

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According to Thomson Reuters I/B/E/S, the company lost 5 cents per share, excluding items, while analysts typically had estimated a loss of revenue of 10 cents.

Husky, controlled by Hong Kong billionaire Li Ka-shing, said U.S. oil prices averaged US$42.18 per barrel in the quarter in contrast to US$73.15 a year earlier.

The company also said on Friday it had hired financial advisers to help using the previously announced intend to sell some midstream assets in western Canada’s Lloydminster region, which straddles the Alberta-Saskatchewan border.

Husky had said in December it’s seeking to sell the assets, to bolster its balance sheet and meet debt obligations.

The Calgary-based company been on January scrapped its dividend, cut its capital budget as well as production guidance for the year as it attempts to deal with the prolonged slump in oil prices.
? Thomson Reuters 2016