Husky Energy swings to $304 million loss in second quarter as revenues plunge

Husky Energy Inc. swung to a $304-million net loss in the second quarter as revenues plunged nearly 55 per cent.

The Calgary-based oil producer says it lost 31 cents per diluted share for the three months ended June 30, compared with net income of 36 cents per share or $370 million a year earlier.

Revenues were $2.38 billion, down from $5.24 billion in the second quarter of 2019.

Read more: Economic ‘train wreck’ leaves Calgary-based Husky with $1.7B loss, prompts 90% dividend cut

Husky Energy was expected to lose 39 cents per share on $2.73 billion of revenues, according to financial markets data firm Refinitiv.

Funds from operations were $18 million or two cents per share, down from $802 million or 80 cents per share a year earlier while capital expenditures were $310 million, including $63 million in Superior Refinery rebuild capital.

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Total equivalent production fell 7.8 per cent to 247,000 barrels of oil equivalent per day, from $268,000 a year earlier.

Read more: Husky Energy is cutting spending by $1 billion this year

Chief executive Rob Peabody says Husky quickly adapted to the global market downturn by cutting capital spending and costs to reinforce its cash position.

“The early actions we took in the first half of 2020 to dial back production in response to the severe reduction in product demand has effectively stabilized our business, and in May and June, our net debt position.”

© 2020 The Canadian Press