CALGARY, ALBERTA -- (Marketwired) -- 05/07/13 -- Husky Energy (TSX: HSE) continued consistent execution across all business segments as the flexibility of its focused integration strategy delivered strong cash flow and net earnings in the first quarter.
"We are achieving important operational milestones as we deliver on our business plan, including the sustained high performance of our heavy oil thermal projects," said CEO Asim Ghosh. "We are making great progress on the Liwan Gas Project in the Asia Pacific Region, with the topsides module set for installation on the jacket in the South China Sea."
Cash flow from operations was approximately $1.3 billion, compared to $1.2 billion the previous year. Net earnings of $535 million were achieved despite continuing pressure on heavy oil differentials that saw average benchmark prices for Lloydminster heavy crude fall 22 percent from the fourth quarter of 2012.
Total Upstream production averaged approximately 321,000 barrels of oil equivalent per day (boe/day) with continued Downstream reliability contributing to average throughputs of 327,000 barrels per day (bbls/day) at the Company's refineries and upgrader.
"Our upgrading and refining assets continue to diminish volatility in earnings and cash flow by enabling the capture of world pricing for our Western Canada production," said Ghosh.
Performance Highlights Include:
-- Cash flow from operations in the first quarter was up approximately eight percent at $1.3 billion, or $1.30 per share (diluted), compared with approximately $1.2 billion, or $1.20 per share (diluted) in 2012.-- Net earnings were $535 million, or $0.54 per share (diluted), compared to $591 million, or $0.60 per share (diluted) in the first quarter of 2012, reflecting lower crude prices.-- Total Upstream production was 321,000 boe/day, up from 320,000 boe/day in the first quarter of 2012, with production weighted 72 percent towards oil and liquids compared to 69 percent in the first quarter of 2012.-- Topsides for the Liwan Gas Project in the Asia Pacific Region have been loaded out, with installation scheduled for the second quarter and first gas anticipated in the late 2013/early 2014 timeframe.-- Phase 1 of the Sunrise Energy Project is approximately two-thirds complete with first production on track for 2014.-- Filed regulatory application for a 3,000 bbls/day bitumen carbonate pilot at Saleski.-- Construction is approximately 55 percent complete on the 3,500 bbls/day Sandall heavy oil thermal project, with planned startup in 2014.-- Development drilling has commenced at the South White Rose extension in the Atlantic Region for planned first production in 2014.-- Completed Front-End Engineering Design (FEED) for the West White Rose Project.-- A 20,000 bbls/day kerosene hydrotreater has started operations at the Lima Refinery in Ohio to provide additional distillate capacity and increased flexibility between on-road diesel and jet fuel production.FINANCIAL AND OPERATIONAL HIGHLIGHTS Three Months Ended Mar 31 Dec 31 Mar 31 2013 2012 20121) Daily Production, before royalties Total Equivalent Production (mboe/day) 321 319 320 Crude Oil and NGLs (mbbls/day) 231 232 222 Natural Gas (mmcf/day) 537 524 5882) Total Upstream Netback ($/boe) (1) 31.78 35.99 43.003) Refinery and Upgrader Throughput (mbbls/day) 327 335 3244) Cash Flow from Operations(2) (Cdn $ millions) 1,283 1,414 1,172 Per Common Share - Basic ($/share) 1.31 1.44 1.21 Per Common Share - Diluted ($/share) 1.30 1.44 1.205) Net Earnings (Cdn $ millions) 535 474 591 Per Common Share - Basic ($/share) 0.54 0.48 0.61 Per Common Share - Diluted ($/share) 0.54 0.48 0.606) Adjusted Net Earnings(2) (Cdn $ millions) 547 487 566 Per Common Share - Basic ($/share) 0.56 0.50 0.59 Per Common Share - Diluted ($/share) 0.56 0.50 0.587) Capital Investment, including acquisitions (Cdn $ millions) 1,066 1,473 1,0158) Dividend Per Common Share ($/share) 0.30 0.30 0.30(1) Upstream Netback includes results from Upstream Exploration and Production and excludes Upstream Infrastructure and Marketing.(2) Cash Flow from Operations and Adjusted Net Earnings are non-GAAP measures. Refer to the Q1 MD&A, Section 11 for reconciliation.