Tumbling oil prices bit into Husky Energy’s profits in the second quarter. It recorded a second quarter profit of $120 million, a massive tumble from the $628 million profit it posted in 2015.
Husky says Alberta’s corporate tax increase from ten to 12 per cent in June ate into $157 million.
“Our hand has been reinforced by the structural changes and efficiencies we have put in place over the past five years as we further grow our low sustaining capital business,” said Asim Ghosh, CEO in the press release.
In its quarterly report the company says the Sunrise Energy Project is ramping up production towards the expected capacity of about 60,000 barrels per day by the end of 2016.
“Steaming is under way on 43 of 55 well pairs, with 25 pairs on production and volumes continuing to increase ahead of plan,” stated the company in its report.
Husky says it has already locked in $575 million in cost savings this year, well on track to meet its $400-600 million target.
