Husky Energy posts quarterly loss on C$2.3bn in charges

• The company said the impairment charges on the assets, which include its Sunrise Energy Project, were primarily related to expectations of lower long-term oil prices and a drop in capital spending.
• Husky reported a net loss of C$2.3 billion in the fourth quarter ended Dec. 31, compared with net earnings of C$216 million a year earlier.

Oil producer Husky Energy Inc reported a quarterly loss on Thursday as it took C$2.3 billion ($1.73 billion) in charges mainly related to its oil sands assets in North America.

The company said the impairment charges on the assets, which include its Sunrise Energy Project, were primarily related to expectations of lower long-term oil prices and a drop in capital spending.

Calgary-based Husky said in December it would cut its capital spending by C$500 million over the next two years, at a time when oil producers have been under pressure to return more cash to shareholders.

Earlier this month, rival Suncor Energy also took a C$2.8 billion writedown on its newest oil sands site, on expectations of heavy oil prices remaining low for the foreseeable future.

Husky reported a net loss of C$2.3 billion in the fourth quarter ended Dec. 31, compared with net earnings of C$216 million a year earlier.

Average quarterly production rose to 311,300 barrels of oil equivalents per day (boepd) from 304,300 boepd.