Husky posts 3rd quarter profit, assessing 'next steps' for East Coast
Sale of assets help offset falling oil prices, company looking to cut costs further
The operator of the White Rose oil play off Newfoundland says it made a profit during the third quarter of 2016 after it sold off assets.
Husky Energy reported a profit of $1.39 billion, compared with a loss of $4.09 billion last year, mostly through the sale of assets in Western Canada.
"Amidst persistent volatility in oil prices over the past two years and sustained pressure on refined product prices, we have built a strong balance sheet with net debt now in line with our target," CEO Asim Ghosh said.
In releasing its financial statement Thursday, the company said average net production off the East Coast was about 24,800 barrels per day, reflecting a maintenance shutdown of the SeaRose FPSO. First oil was also reported at North Amethyst in the Jeanne d'Arc Basin.
The company said in its financial overview that it is still assessing its next steps for oil and gas development in the region.
- No decision this year on West White Rose project, says Husky VP
- Husky Energy lays off local staff in cost-cutting move
A Husky executive told an oil and gas conference in St. John's in June that it is looking for more stability in oil prices before approving an extension to the White Rose field, a project that would cost $2.5 billion, according to the Canadian Association of Petroleum Producers.
"The assessment of West White Rose is progressing with a focus on increased capital efficiency and improved resource capture," Husky said Thursday.
The company is also considering its next move in the Flemish Pass Basin, where Husky is a 35 per cent owner of recent discoveries like Bay du Nord and Mizzen.