Husky dives despite surging oil prices

PUBLISHED : Friday, 20 August, 2004, 12:00am
UPDATED : Friday, 20 August, 2004, 12:00am

Despite a surge in oil prices, Husky Energy posted a 38.9 per cent decline in first-half profit after locking in sales contracts at much lower prices last year. Hutchison Whampoa chairman Li Ka-shing, whose company owns a 35 per cent stake in Husky, said: 'The oil-price trend is something even the world's experts can't guess accurately. If I could predict it, I'd be the richest man in the world.'

Husky recorded a net profit of $1.25 billion in the first half of the year, down from $2.05 billion in the same period last year, despite turnover rising 16.9 per cent year on year to $8.9 billion.

He said Husky had huge upside potential with oil sand reserves, booked at zero value in its accounts, that could yield billions of barrels of oil and last for more than 50 years.