Husky Energy Inc. reported a first-quarter profit of $248 million, up from $71 million a year ago, as it lowered its annual production guidance.
The energy company says the profit amounted to 24 cents per share for the three months ended March 31, up from six cents per share a year ago.
On an adjusted basis, Husky says it earned $245 million or 24 cents per share in the quarter, up from an adjusted profit of $73 million or seven cents per share in the same quarter last year.
In its outlook, Husky says due to wide Canadian heavy oil differentials it will temporarily reduce heavy oil production and substitute discounted third-party crude as feedstock for its downstream operations. It also noted that its BD Project in Indonesia is ramping up more slowly than expected.
As a result, the company is lowering its annual production guidance for 2018 by 10,000 barrel of oil equivalents per day and is now expected to average in the range of 310,000 to 320,000 boepd, exiting the year in the 330,000 to 340,000 boepd range.
Husky says funds from operations for the year are still expected to be $4 billion.
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