Page 12 - Sphere No.31 (Jul 2012)

10 Sphere 31
Energy
The Group’s energy division, principally
located in Canada, comprises mainly a 33.90
per cent interest in Husky Energy, Inc (Husky), one of Canada’s
largest integrated energy and energy-related companies.
Hutchison and Mr Li Ka-shing acquired Husky in 1987, when
the company was hobbled by debt. The acquisition did face
much scepticism as to the profitability of the investment.
However, Husky’s earnings in recent years have not only proven
the soundness of the investment, but have also contributed
significantly to the Group’s portfolio.
Husky’s 2011 revenues were up 37 per cent over 2010.
This advancement was driven by strong production growth,
higher realised crude oil prices and stronger refinery margins.
An average of 312,500 barrels of oil equivalent per day (BOEs
per day) was produced, compared to an average of 287,100
BOEs per day in 2010, an 8.12 per cent increase.
Two large upcoming projects for Husky are its 49 per cent
share in the Liwan Deep Water Natural Gas development in
the South China Sea, set to begin pumping by 2013-2014 and
its 50 per cent share of the Sunrise Energy Project in Alberta,
Canada, projected to produce approximately 60,000 BOEs per
day in 2014.
These two projects, along with its strong capital-raising
capabilities, will be important growth drivers for the division in
coming years.