Assistant Pipeline Superintendant Gerald Johnson at the Husky Energy oil terminal facility in Hardisty, Alta., June 20, 2007. THE CANADIAN PRESS/Larry MacDougal
July 24, 2012 - 8:11 AM
CALGARY - Husky Energy Inc. (TSX:HSE) said Tuesday that weaker commodity prices contributed to dragging down its second-quarter net earnings.
The Calgary-based firm reported profits of $431 million, or 43 cents per share, which was above expectations of 38 cents per share, according to a survey of analysts by Thomson Reuters.
A year ago, the company posted earnings of $591 million, or 60 cents per share.
Gross revenues declined to $5.63 billion from $6.04 billion in the comparable period. Analysts expected revenues of nearly $6.1 billion.
"Amidst ongoing global economic uncertainty and commodity price volatility, we continue to progress our business plans," said chief executive Asim Ghosh in a release.
"This quarter demonstrates our focus on operational performance and achieving the strategic targets we set out at the end of 2010, as we continue to execute the next stages of our growth pillars."
Husky, controlled by Hong Kong billionaire Li Ka-Shing, produces oil and gas in Western Canada, off Canada's east coast and in southeast Asia.
The first 60,000-barrel-per-day phase of its Sunrise oilsands project is under construction. The $2.5-billion project, part of a joint-venture with BP PLC, is slated to start up in 2014.
Work on its Liwan natural gas field in the South China Sea is also progressing, with a projected 2013 or 2014 startup.
Husky had contemplated spinning off its southeast Asian properties into a new publicly traded company, but ultimately decided in late 2010 to keep the high-growth assets in its portfolio.
Husky also has interests in BP-operated refineries in the United States, and a chain of Husky-branded fuel retail outlets in Canada.
News from © The Canadian Press, 2012