OREANDA-NEWS. Husky Energy delivered another steady performance in the third quarter, with its balanced growth and focused integration strategy contributing to predictable results.

Net earnings were CAD 571 million, up 11.5 percent from CAD 512 million in the third quarter of 2013. Cash flow from operations was CAD 1.34 billion, comparable to a year ago.

Upstream production averaged 341,000 barrels of oil equivalent per day (boe/day), up approximately 10 percent from 309,000 boe/day in the third quarter of 2013.

Average throughputs at the Downstream refineries and Lloydminster Upgrader were 334,000 barrels per day (bbls/day), compared to 300,000 bbls/day in the third quarter of last year.

Highlights Include:
* Net earnings were CAD 571 million or CAD 0.58 per share (basic), compared to CAD 512 million or CAD 0.52 per share (basic) a year ago. This included a FIFO loss of approximately CAD 28 million.
* Cash flow from operations was CAD 1.34 billion or CAD 1.36 per share, compared to CAD 1.35 billion or CAD 1.37 per share in the third quarter of 2013.
* Total Upstream production averaged 341,000 boe/day, up from 309,000 boe/day a year ago.
* Commissioning work continues on Phase 1 of the Sunrise Energy Project, which is on track to start steaming around the end of the year.
* Construction of the Rush Lake heavy oil thermal project is now more than 70 percent complete with first production on schedule for the second half of 2015.
* Sales gas volumes from the Liwan Gas Project were in the range of 200 to 220 million cubic feet (mmcf/day, gross), up from a 180 to 200 mmcf/day (gross) range in the second quarter.
* A letter of intent has been issued to award the contract for leasing an FPSO (floating production, storage and offloading) vessel for the liquids-rich BD gas field development offshore Indonesia, allowing design work on the vessel to begin.
* Production facilities were completed at the South White Rose field in the Jeanne d'Arc Basin in the Atlantic Region, with first oil anticipated in the second quarter of 2015 following the drilling of the first production well.
* Construction was completed on two 300,000-barrel tanks at Hardisty, Alberta, which are scheduled to be in service in early 2015.

Third quarter production reflected increased volumes from the Liwan Gas Project, which came onstream earlier this year, and strong performance from heavy oil thermal projects. Production in the Atlantic Region was impacted by approximately 10,300 bbls/day due to the planned installation of production equipment for the South White Rose development, as well as planned turnarounds on the SeaRose and Terra Nova FPSOs, which have resumed production. Western Canada production also takes into account a number of third-party outages and turnarounds.

Downstream throughputs of 334,000 bbls/day take into account a 42-day turnaround at the Lloydminster Upgrader that began in early September and strong performance from the Company's refineries.

West Texas Intermediate prices averaged CAD 97.17 US per barrel in the third quarter compared to CAD 105.83 US a year ago. Average realized pricing for the Company's total upstream production was CAD 68.35 per barrel, compared to CAD 72.13 in the third quarter of 2013. U.S. refining Chicago market crack spreads averaged CAD 17.41 US per barrel in the third quarter, compared to CAD 15.86 US in the same period in 2013, while the realized U.S. refining margin averaged CAD 11.42 US per barrel compared to CAD 11.86 US a year ago.

At the Sunrise Energy Project, the development cost estimate for Phase 1 is CAD 3.2 billion, of which 50 percent is net to Husky. Capital cost efficiency remains in the range of other projects completed or in construction in the industry since 2013.

The Company has incorporated several technologies to reduce sustaining capital, including a customized mobile drilling rig and multi-phase metering. The rig provides for closer spacing of wellheads, resulting in a smaller footprint and less piping and facilities on the pad.