Li Ka-shing-controlled Husky Energy joins peers in output and spending cuts
Company decides against fourth-quarter dividend payment
Husky Energy, controlled by Hong Kong tycoon Li Ka-shing, has joined its international peers in slashing project spending and output as oil prices sink to a 12-year low.
To conserve cash amid the worsening global commodities rout, the company has also suspended its quarterly dividend payment for the fourth quarter of last year, after paying a stock dividend instead of a cash dividend for the third quarter.
“Given the persistent downward pressure on oil prices and the extended lower-for-longer outlook ... no cash or share dividend will be issued for the fourth quarter of 2015,” it said on Wednesday morning.
The Canada-based firm said it expected to produce oil and gas amounting to 315,000 to 345,000 barrels of oil equivalent (boe) this year, down from it previous plan of 330,000 to 360,000 boe.
At the mid-points of the target ranges, the revision represents a cutback of 4.3 per cent.
Husky has also announced the slashing of its projects capital expenditure plan for this year to between C$2.1 billion and C$2.3 billion, from a previous range of C$2.9 billion to C$3.1 billion, mainly via deferral of “discretionary activities” in Western Canada.
At the mid-points of the budget ranges, the revision represents a 26.7 per cent reduction.