Husky Energy Inc. reported first-quarter net earnings of $191 million (Can.) compared with a loss of $603 million in the previous quarter and year-ago earnings of $662 million.
Results for the first quarter included $203 million in deferred tax recovery.
Production before royalties averaged 356,000 boe/d, down from 360,000 in the fourth quarter. Crude and natural gas liquids accounted for 237,000 b/d, while natural gas averaged 717 MMcfd.
Husky said production is expected to decline in the second quarter due to planned maintenance programs upstream and downstream.
Husky cited the impacts of lower prices for crude oil and natural gas, and “lower US refining and marketing margins resulting from a drop in market crack spreads.”
The company said it remains on track to add 85,000 b/d of net new production by yearend 2016, a portion of which is expected to offset natural declines.
The Husky-operated Sunrise Energy Project in northern Alberta is expected to ramp up to full capacity of about 60,000 b/d by yearend 2016, with 30,000 b/d of oil sands net to Husky (OGJ Online, Mar. 11, 2015). Steaming is under way on 34 of 55 well pairs.
Offshore China, the Liwan Gas Project averaged 262 MMcfd of gas sales volumes in the quarter, with volumes expected to increase to 290-320 MMcfd this year (OGJ Online, Dec. 15, 2014).
The 160,000-b/d refinery in Lima, Ohio, is operating at about 80% capacity after an explosion and fire in the isocracker area in January (OGJ Online, Jan. 12, 2015). Work is under way for isocracker startup in first quarter 2016.