Husky Energy Says No Cash Or Dividend Will Be Issued For The Fourth Quarter, Cites 'Persistent Downward Pressure' On Oil Prices

Husky Energy Inc (USA) HUSKF provided a business update after Tuesday's market close which included a suspension of its quarterly dividend.

Husky Energy stated that it will not pay a cash or share dividend during the fourth quarter of 2015 and its dividend policy will be reviewed on a quarterly basis. The company cited the "persistent downward pressure on oil prices and the extended lower for longer outlook" in eliminating its dividend.

Husky Energy added that it is assessing the potential partial sale of some of its midstream assets in the Lloydminster region. The company is also continuing its planned disposition of select legacy oil and natural gas assets in Western Canada.

Husky Energy also noted that its total production is expected to be in the range of 315,000 to 345,000 barrels of oil equivalent per day, marking a decrease from its prior guidance of 330,000 to 360,000 barrels of oil equivalent per day.

"We continue to take decisive action in this period of persistent supply-demand imbalance," said CEO Asim Ghosh. "These actions are in line with the principles we have established, namely, balancing capital spending with cash flow and maintaining a strong balance sheet. Our fundamental goal remains unchanged - the steps we are taking will see Husky emerge from this cycle as a more resilient and more profitable company."

Shares of Husky Energy hit a new 52-week low of $7.97 shortly after Wednesday's opening bell and was trading lower by nearly 12 percent. Husky Energy's Toronto-listed stock also hit a new 52-week low of C$11.56.