Asset sales propel Husky Energy to a $1.4-billion profit after oil spill

Husky Energy says gains from asset sales propelled it to a $1.4-billion profit in the third quarter.

The profit amounted to $1.37 per share, which contrasted with a year-earlier loss of $196 million or 20 cents per share. The news comes roughly three months after a 19-year-old pipeline belonging to the Calgary-based company spilled more than 1,570 barrels of crude oil and other toxins into the North Saskatchewan River, contaminating the drinking water source of thousands.

The biggest contribution to Husky's third-quarter net income was a $1.3 billion after-tax gain from the sale of midstream assets to a new limited partnership. Husky retains a 35 per cent interest in the partnership. The Calgary-based company also recorded a $167-million after-tax gain from the disposition of some Western Canada production assets.

After adjustments however, Husky had a $100 million loss, which was above the year-earlier adjusted loss of $91 million

Husky has also announced that Asim Ghosh will retire as president and CEO on Dec. 5 after seven years as the company's top executive. His successor will be Rob Peabody, Husky's chief operating officer since 2006.

The company delivered its latest financial results for investors a few days after telling the Saskatchewan government that it was unable to meet a 90-day deadline to submit a "detailed incident report" regarding a mid-July pipeline spill. The province gave Husky a 30-day extension after the company said that two technical reports — one metallurgic and one geotechnical — had not yet been completed by its third-party engineering firms.

This delay was confirmed right after the Saskatoon Star-Phoenix quoted a Husky spokesman saying on Oct. 17 that the company was expecting to file the report by Oct. 21.