Husky quintuples fourth quarter profits

Husky Energy Inc., Calgary, reports an almost fivefold increase in fourth quarter profits to $232 million (Can.) from $47 million in the same period in 1999. Profits for 2000 tripled to $546 million from $160 million in 1999 on cash flow of $1.4 billion, up from $517 million in 1999.


By an OGJ Online Correspondent


CALGARY, Feb. 16
�Husky Energy Inc., Calgary, reports an almost fivefold increase in fourth quarter profits to $232 million (Can.) from $47 million in the same period in 1999.

Profits for 2000 tripled to $546 million from $160 million in 1999 on cash flow of $1.4 billion, up from $517 million in 1999.

Husky attributed gains to higher oil prices and a takeover last August of Calgary-based Renaissance Energy Ltd. The fourth quarter was the first in which Renaissance assets were included for the entire period.

The company said revenues increased 95% to $1.77 billion from $908 million and profit from oil and gas production increased more than sevenfold to $326 million.

Husky said gas production rose to 575 MMcfd from 245.3 MMcfd and average oil production more than doubled to 174,900 b/d.

The company reported profits of $19 million compared with a loss of $3 million for the same period in 1999 from refinery operations and 600 gasoline stations

Formerly a private company, Husky is 70% owned by Hong Kong businessman Li Ka-Shing and members of his family.

Husky said it plans to spend $1.09 billion on exploration and development in 2001, up from $700 million in 2000. Spending will include $860 million in western Canada, $130 million on the East Coast where Husky has substantial interests off Nova Scotia and Newfoundland, and $100 million on international projects.

The company said it wants to increase production to 490,000 boe/d by 2005 from 270,000 boe/d in fourth quarter 2000.

CEO John Lau said the increase in Husky�s cash flow will finance longer-term growth projects and strengthen the company�s balance sheet through debt repayment, both of which will add shareholder value.

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