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CALGARY — Husky Energy Inc. has kicked off the oil patch's quarterly financial reporting season with a record period, as soaring oil and gas prices drove the company's profit, cash flow and revenues to new records.
With oil prices hitting a new high of over $140 a barrel in the second quarter, Husky's record figures likely foreshadow equally strong results from Canada's other major energy companies, which will also have benefited from the commodity price strength.
Husky reported profit of $1.36-billion or $1.61 a share in the second quarter ended June 30, an increase of 89 per cent over the same period last year, even though the company's oil and gas production dropped because of maintenance and weather conditions at its Canadian East Coast operations.
Husky produced 359,100 barrels of oil equivalent a day in the quarter, down from 379,100 boe/d in the same period last year. Revenue was $7.2-billion, up 128 per cent.
Husky Energy
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Analysts have predicted that producers will likely break records again this quarter because of the commodity price surge. Earlier this month, UBS analyst Andrew Potter predicted cash flows for senior exploration and production companies would rise year on year by an average of 14 per cent, while share profit for oil companies with refining and processing operations would increase 66 per cent.
Companies due to report results Thursday include EnCana Corp., Suncor Energy Inc. and Petro-Canada. EnCana, Canada's largest oil and gas company, is expected to deliver a strong performance because of production increases at its U.S. operations, but output at both Petro-Canada – a partner with Husky on its East Coast operations – and Suncor is expected to decline.
Suncor has experienced reliability problems at its oil sands operations that have reduced output.
