- Husky Energy (HSE) has revealed a net loss of C$304 million in its second quarter of 2020, following the onset of the COVID-19 pandemic
- The company went from $802 million in cash from operations in 2019's June quarter to just $18 million this year
- Husky's second quarter production fell from 214,000 barrels of oil produced daily last year to 175,000 barrels daily this year
- As a result, the company's net debt has ballooned from $3.7 billion at the end of 2019's June quarter to $5.1 billion at the end of this quarter
- Husky Energy (HSE) is down 4.8 per cent and is trading at $4.49 per share
Husky Energy (HSE) has revealed a net loss of C$304 million in its second quarter, following the onset of the COVID-19 pandemic.
The company also posted just $18 million in cash from operations for the quarter, compared to $802 million in 2019's June quarter.
Husky Energy has a market cap above $4.5 billion, with massive production capacity, yet cash flow from operating activities fell to a loss of $10 million during the quarter.
This represents the huge levels of production shut-ins the company has embarked on during the quarter, which were implemented to mitigate the impact of the coronavirus pandemic.
The company went from an upstream daily oil production of 214,000 barrels per day in 2019's corresponding quarter to just 175,000 daily barrels this quarter.
Second quarter capital expenditure was $310 million, dropping substantially compared to $858 million in the previous corresponding period.
Net debt has risen to $5.1 billion versus $3.7 billion at the end of the June quarter in 2019.
The CEO of Husky Energy Rob Peabody said the company had quickly adapted to the global market downturn by immediately reducing capital spending, implementing sustainable cost savings measures and reinforcing our liquidity 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 stabilised our business, and in May and June our net debt position," he said.
The company's share price has dropped substantially from $10.54 at the start of the year to less than half that today.
Husky Energy (HSE) is currently down 4.8 per cent and is trading at $4.49 per share at 2:30 pm EDT.