Net earnings for Husky Energy soared in the third quarter of this year.
The Calgary-based energy company reported on Thursday that net earnings were $545 million, a 300 per cent increase compared to $136 million in the third quarter of 2017. Net debt at the end of the quarter was lowered to $2.6 billion.
“Husky’s physical integration allows the company to benefit fully from strong Brent and WTI prices despite wide location and quality differentials. With committed export pipeline capacity and the flexibility to swing between heavy and light crudes in our refining system, we are maximizing margins across our integrated corridor,” said CEO Rob Peabody in a news release. “Through Husky’s high level of integration, and offshore production, we continue to attain higher global pricing and generate strong free cash flow.”
Husky said it generated funds from operations of $1.3 billion in the third quarter, up 48 per cent from $891 million in the same period last year. Year to date, funds from operations are $3.4 billion.
Free cash flow in the quarter was $350 million and $1.1 billion year to date.
On Oct. 2, Husky made an offer to acquire all outstanding shares of MEG Energy. The offer is open for acceptance until Jan. 16, 2019.
“Our offer to acquire the outstanding shares of MEG Energy utilizes Husky’s strong balance sheet and ability to capture higher prices to create a stronger, more competitive Canadian energy company. Husky’s third quarter results demonstrate the value potential for MEG shareholders and our ability to achieve financial targets faster than MEG could as a stand-alone company,” said Peabody.
Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald, including 12 years as a senior business writer.