OREANDA-NEWS. Husky Energy continued its focus on reliable business performance in the first quarter of 2014 as it delivered strong net earnings and cash flow.

"We are consistently hitting our marks as we monetize our extensive portfolio of high-return, long-life projects," said CEO Asim Ghosh. "The landmark Liwan Gas Project achieved first gas and will be a long-term production, earnings and cash flow contributor. In addition, we began production at the Sandall heavy oil thermal project and are building on our momentum by sanctioning another 3,500 bbls/day thermal project for startup in 2016."

Net earnings of CAD 662 million increased 24 percent from CAD 535 million in the first quarter of 2013. Cash flow from operations was CAD 1.5 billion, an increase of 20 percent over CAD 1.3 billion in the first quarter of 2013.

Upstream production averaged 326,000 barrels of oil equivalent per day (boe/day) compared to 321,000 boe/day in the first quarter of 2013 and 308,000 boe/day in the fourth quarter of 2013, reflecting additions from the Sandall heavy oil thermal development and the Ansell liquids-rich gas resource project.

Highlights Include:
* Cash flow from operations was CAD 1.5 billion, or CAD 1.56 per share (diluted), compared to CAD 1.3 billion, or CAD 1.30 per share (diluted) in the first quarter of 2013.
* Net earnings were CAD 662 million, or CAD 0.66 per share (diluted), compared to v535 million, or CAD 0.54 per share (diluted) in the first quarter of 2013.
* Total Upstream production averaged 326,000 boe/day, compared to 321,000 boe/day in the first quarter of 2013. Oil and liquids production was 74 percent, compared to 72 percent a year ago.
* Achieved first gas at the Liwan Gas Project.
* Initiated production at the 3,500 bbls/day Sandall heavy oil thermal project. Current heavy oil thermal production is now more than 45,000 bbls/day, in line with a target of 55,000 bbls/day by 2016.
* Sanctioned a new 3,500 bbls/day heavy oil thermal project at Edam West, with startup scheduled in 2016.
* Increased production at the Ansell liquids-rich gas resource play to approximately 17,000 boe/day.
* The Sunrise Energy Project is about 87 percent complete and progressing towards startup in the second half of 2014.
* Commenced gas injection at the South White Rose extension in the Atlantic Region, with first oil planned around the end of the year.