OREANDA-NEWS. Husky Energy Announces Financial and Operational Highlights.

Upstream production in the second quarter averaged 337,000 boe/day compared to 334,000 boe/day in the second quarter of 2014. This takes into account steady results from the Company's suite of heavy oil thermal projects, strong performance at the Liwan Gas Project and the ongoing ramp up of production at the Sunrise Energy Project.

Production was impacted by scheduled turnarounds at the Tucker heavy oil thermal project and the Ansell resource play, as well as planned maintenance at several heavy oil thermal projects and on the partner-operated Terra Nova FPSO (floating production, storage and offloading) vessel. In addition, Husky's working interest at Liwan reverted to 49 percent in late May following the recovery of exploration costs.

Cash flow from operations was USD 1.2 billion, compared to USD 1.5 billion in the second quarter of 2014. Results were impacted by lower realized crude oil pricing, partially offset by stronger U.S. refining and marketing margins. In addition, a portion of the Company's cash flow is not directly exposed to current oil price challenges. This includes Liwan gas, which is based on fixed-price sales contracts at set volumes, and the margin-based Downstream business.

Net earnings were USD 120 million, compared to USD 628 million a year ago. This reflected several one-time items, including:
* A USD 157 million impact from a corporate tax increase in Alberta from 10 percent to 12 percent. This was recognized in the second quarter as the legislation was enacted in June 2015.
* A USD 79 million recovery from tax provision releases in Canada and the U.S.
* A USD 29 million (after tax) impact from the write off of the isocracker unit at the Lima Refinery. This was mitigated by USD 58 million (after tax) from insurance recoveries, which largely offset the earnings impact from the business interruption to the end of June.

The Company realized a USD 78 million FIFO gain from increased crude pricing throughout the quarter.

Average throughputs at the Downstream refineries and Lloydminster Upgrader were 313,000 bbls/day compared to 304,000 bbls/day in the second quarter of 2014, which takes into account reduced capacity at the Lima Refinery and unscheduled maintenance at the Upgrader that commenced in late June.