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HSE - Husky Energy Inc News Story

C$4.8 0.2  3.7%

Last Trade - 10/08/20

Large Cap
Market Cap £2.66bn
Enterprise Value £6.93bn
Revenue £9.48bn
Position in Universe 106th / 2675

Canadian oil companies take go-slow approach to recovery as prices improve

Tue 7th July, 2020 5:56pm
By Rod Nickel and Jeff Lewis
    WINNIPEG, Manitoba/TORONTO, July 7 (Reuters) - Canadian oil
producers are maintaining a cautious approach, holding spending
at reduced levels even as rising prices brighten the outlook.
    North American oil prices have rebounded to more than $40
per barrel from a dip into negative prices in April, tempting
some producers to increase spending or output.
    U.S. shale producers were expected to restore roughly half a
million barrels per day (bpd) by the end of June, amounting to a
quarter of what they shut since the coronavirus pandemic cut
fuel demand and hammered oil prices.*:nL1N2DN1NV
    Canada appears to be more cautious.
    "There is still a lot of water to go under the bridge about
uncertainty," Suncor Energy  SU.TO  Chief Executive Mark Little
said on Tuesday at a TD Securities online investor conference.
    "For every positive step forward that some economies are
taking, some other economies are putting restart programs on
hold. So we have a long way to go to get out of this."
    Imperial Oil Ltd  IMO.TO , majority owned by Exxon Mobil
Corp  XOM.N , sees demand for refined products such as gasoline
improving through 2020, along with utilization of refineries,
Chief Executive Brad Corson said. 
    Even so, its reduced capital budget - cut by C$500 million
or 30% in March - "still seems pretty realistic," Corson said.
    Oil sands producer Cenovus Energy's  CVE.TO  top priority is
debt reduction even as it restores about 60,000 bpd of idled
production, Chief Financial Officer Jonathan McKenzie said. 
    The global oil industry "stops working" with prices below
$45, he said.
    Husky Energy  HSE.TO  has restored half of the 80,000 bpd
that it shut in, said CFO Jeff Hart. It has no plans, however,
to restore any capital spending.
    "I don't see us ramping up regardless of oil price here in
the latter half," Hart said at the conference.

 (Reporting by Rod Nickel in Winnipeg, Manitoba, and Jeff Lewis
in Toronto; editing by Jonathan Oatis)
 ((; Twitter: @RodNickel_Rtrs;
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