Husky Energy reports a gain in third quarter earnings and profits
Husky Energy reported net earnings of $571 million for Q3-2014, up 11.5% from the same time last year. Cash flow from operations were unchanged at $1.34 billion. Total production increased 10% from last year to 341,000 barrels of oil equivalent per day.
Throughput at the Lloydminster upgrader rose to 334,000 barrels per day (bpd), up from 300,000 bpd in Q3-2013. The upgrader experienced a 42-day turnaround in early September which negatively affected Q3 results.
Commissioning is on-going at the Sunrise Energy Project for the 30,000 bpd central processing plant. The SAGD facility is expected to start steaming by year end. Oil production is expected 6 months after first steam, with ramp-up to full production expected within 2 years. Phase 1 of Sunrise has a nameplate capacity of 60,000 bpd.
Husky also completed construction of two 300,000 barrel tanks at Hardisty, AB, which are expected to be put into service by early 2015. The company has made commitments on the Cochin pipeline to provide diluent to the Sunrise facility, which is located 60 km NE of Fort McMurray, AB.
The company also announced that the total capital expenditures for Phase 1 of Sunrise has risen to $3.2 billion, which is in line with other SAGD facilities currently under construction. The Sunrise Energy Project is a 50/50 joint venture with BP.
Engineering is on-going for Phase 2 of Sunrise. The project currently has regulatory approval for up to 200,000 bpd of production.
Husky realized a crude oil price of $68.35 per barrel in the third quarter of 2014, compared to $72.13 for the same time last year.