July 26, 2013 [OPIS] - Husky Energy said on Thursday that it has commenced construction on a project to add two 300,000-bbl storage tanks to the company's Hardisty terminal to provide for increased access to existing pipeline infrastructure and add product blending capacity.
Also, the Alberta-based integrated oil company said that the partner-operated Toledo, Ohio, refinery is continuing work on a multi-year program to improve feedstock flexibility, operational integrity and plant performance. This project is intended to allow the refinery to process Sunrise Phase 1 production.
The Sunrise Phase 1 production in the northeast Fort McMurray in Alberta is expected to be completed in 2014 at 200,000 b/d of oil sands.
Husky said that preliminary design work on the next phase of Sunrise has been completed. Regulatory approvals are in place for a total of 200,000 b/d (100,000 net) of production.
Husky is predominantly an upstream exploration and production company, but it has a refinery in Lima and BP-Husky joint-venture’s refinery at Toledo. Both refineries are rated at 160,000 b/d each, and both are in Ohio.
Husky said that its refinery and upgrader throughput in the second quarter was 317,000 b/d, compared with 327,000 b/d in the first quarter and 323,000 b/d in the same period of 2012.
Husky’s second-quarter net earnings were $605 million, or $0.59 per share (diluted), compared to $431 million, or $0.43 per share (diluted) in the second quarter of 2012.
Cash flow from operations in the second quarter was $1.45 billion, or $1.47 per share (diluted), compared with approximately $1.15 billion, or $1.17 per share (diluted) in 2012.
Total upstream production was 310,000 barrels of oil equivalent (boe)/day, up from 282,000 boe/day in the second quarter of 2012, with production weighted 73% towards oil and liquids compared to 67% in the second quarter of 2012.
