A Husky gas station in Abbotsford, B.C. (Google Street View image)

Husky Energy confirms 370 job cuts as it trims spending by $500 million

Calgary-based company is cutting 2020-21 capital spending

About 370 jobs have been cut at Husky Energy Inc. this year with most of the reductions coming in a major round of layoffs in October, CEO Rob Peabody revealed on a conference call Monday to discuss guidance for 2020 and 2021.

The Calgary-based company had refused previously to say how many workers were affected by job cuts designed to better align its workforce with lower capital spending plans going forward.

“What we’re seeing is that (the reductions) will generate forward savings of about $70 million,” said Peabody, adding the company will take a charge against earnings of $70 million in the fourth quarter to account for the job cuts.

“We’re going to continue those efforts to capitalize on the fact we’ve created a more focused and a simpler company.”

In a regulatory filing earlier this year, Husky indicated it had 5,157 permanent employees at the end of 2018, little changed from the numbers at the end of 2016 and 2017.

Capital spending for 2020 and 2021 is being cut by $500 million compared with guidance released last spring due to what Husky called changing market conditions.

The budget for 2020 is to fall by about $100 million to between $3.2 billion and $3.4 billion while the following year it will drop by about $400 million.

Husky says average upstream production is expected to be in the range of 295,000 to 310,000 barrels of oil equivalent per day for 2020, up about four per cent, despite about 5,000 barrels of oil per day in the first half of the year expected to be interrupted by an oil curtailment program in Alberta and planned maintenance.

Production is expected to rise about about 10 per cent in 2021 as new projects come on stream.

The company says its capital spending for 2020 will focus on its Lloydminster, Sask., thermal project portfolio, its Liuhua 29-1 offshore natural gas project in China, and construction of the West White Rose Project in the Atlantic region.

The guidance does not include $450 million to $525 million related to the ongoing rebuild of the Superior Refinery, which is expected to be covered by insurance.

Husky based its plan on an oil price assumption of US$55 per barrel of West Texas Intermediate for 2020 and US$60 in 2021.

Dan Healing, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Courtenay-Alberni NDP MP Gord Johns says Scheer’s resignation not surprising

Pressure is on NDP leader Jagmeet Singh, as the lone major party leader remaining in the opposition

Mount Washington receives more than 30cm of snow

Last week, the resort announced they were pushing back opening day due to lack of snow.

Comox Valley Connector making streets safer during holiday season

The Comox Valley Connector is back for the festive season. Ambassador Transportation… Continue reading

Nutcracker coming to Courtenay’s Sid Williams Theatre

What signs let you know that the holiday season has truly started?… Continue reading

Cumberland campground had a busy season

Visits were up by 13 per cent in 2019 over the previous year

‘Not a decision I came to lightly:’ Scheer to resign as Conservative leader

Decision comes after weeks of Conservative infighting following the October election

BC Hydro offers tips as collisions with power poles increase

Region with the largest spike in collisions was the Lower Mainland at 16 per cent

Canadian airline passengers to be eligible for $1,000 in compensation for delayed flights

Passengers can also receive compensation for overbooking, lost luggage and other inconveniences

RCMP must bury three sex mannequins found in Manning Park

Police tasked with ensuring the mannequins were completely disposed of

B.C. seniors need better vaccine protection, advocate says

Home support down, day programs up in annual rating

RCMP rescue wounded raven on Vancouver Island highway

Bird expected to make full recovery

Be aware of ticks when chopping down Christmas trees

Potential for ticks to transfer to clothing

More rowers come forward with complaints about UVic coach

Barney Williams is accused of verbal abuse and harassment

Raptors fans show Kawhi the love in his return to Toronto

Leonard receives championship ring, leads new club to win

Most Read