Husky Energy reports Q3 profit drop from year ago

CALGARY — Husky Energy Inc. says it earned $273 million in its latest quarter, down from $545 million in the same quarter last year.

The company controlled by Hong Kong billionaire Li Ka-Shing says the profit amounted to 26 cents per share for the three months ending Sept. 30 compared with a profit of 53 cents per share a year ago.

Revenue totalled $5.31 billion, down from $6.16 billion.

Upstream production averaged 294,800 barrels of oil equivalent per day, compared with 296,700 in the third quarter of 2018. The average realized price was $47.54 per barrel of oil equivalent, down from $50.44 a year earlier.

Upgrader and refinery throughput was 356,400 barrels per day in the quarter, up from 350,600 in the same period in 2018.

Husky confirmed earlier this week that it was laying off staff as a result of steps taken to align its workforce with its capital plan and strategy, but did not say how many people it was cutting.

It announced at its investor day last spring that it would slash its average budget by $350 million per year to $3.15 billion over the next five years, accomplishing that in part by cutting costs.

It said it would still grow its production by 100,000 barrels per day by 2023.

The job cuts are reminiscent of a series of layoffs by Calgary oil and gas producers following an oil price crash in late 2014 that contributed to an estimated 110,000 direct and indirect jobs being lost through 2015 and 2016.