CALGARY, ALBERTA--(Marketwire - April 11, 2011) - Husky Energy Inc. (TSX:HSE) is pleased to report that its Lloydminster heavy oil upgrader has now resumed normal operations. The Upgrader is presently operating at 75 to 85 percent of capacity and is ramping up towards full production.
A minor fire, which took place on February 2, damaged a hydrocracker fractionation unit, which supplies product to the coker. While damage was not extensive, repairs took place in a congested space under extremely cold weather conditions. Husky's focus has been on ensuring the safety of its personnel and the thoroughness of the repair work.
The cause of the fire has been determined. A pipeline froze and burst, releasing fuel onto equipment. The cause has been analyzed and repairs have been made incorporating measures to prevent a similar incident in the future.
The overall pre-tax impact, including repair costs, is estimated as an opportunity cost of between $80 to $90 million which represents the facility running at reduced rates and considering the market price environment during the affected period and through ramp up. Steps undertaken to mitigate financial impacts included maintaining daily production at approximately 40 to 50 percent of normal rates during the repair process.
Husky Energy is an integrated energy company headquartered in Calgary, Alberta, Canada. Husky Energy is a publicly traded company listed on the Toronto Stock Exchange under the symbol HSE. More information is available at www.huskyenergy.com.
LEGAL NOTICE - FORWARD LOOKING INFORMATION
Certain statements in this press release are forward-looking statements or information (collectively "forward-looking statements"), within the meaning of the applicable securities legislation. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as: "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intend," "plan," "projection," "could," "vision," "goals," "objective" and "outlook") are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. In particular, this news release includes forward-looking statements relating to the Company's general strategic plans; expected timing of return to full capacity at the Upgrader; and the estimated overall pre-tax impact to the financial statements of the Company. Although Husky believes that the expectations reflected by the forward-looking statements presented in this press release are reasonable, Husky's forward-looking statements have been based on assumptions and factors concerning future events that may prove to be inaccurate. Those assumptions and factors are based on information currently available to Husky about itself and the businesses in which it operates. Information used in developing forward-looking statements has been acquired from various sources including third party consultants, suppliers, regulators and other sources. Husky's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com and the EDGAR website www.sec.gov) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. In addition, assumptions used in developing the forward-looking statements in this press release include assumptions about the market price environment during the period and the financial benefit that could have been realized in the period had the Upgrader been operating at full capacity. Statements relating to the estimated pre-tax impact have been prepared for purposes of expressing current management views and may not be appropriate for other purposes. Except as required by applicable securities laws, Husky disclaims any intention or obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.