TSX:HSE.PR.B - Post by User
Comment by
jwallingfon Apr 28, 2019 1:35am
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Post# 29680188
RE:Some good stuff but a few concerns
RE:Some good stuff but a few concernsoilandgasmick: The increase in net debt, as another poster has pointed out, was due to the US$750 million dollar note offering this March. Husky has to roll over about C$1.8 billion in expiring notes this year. They could pay off these notes with cash on hand of C$2.8 billion but I guess they have a better use for it.
There were so many good things in the latest results but investors just yawned.
- Earnings up by 32% vs Q1 2018
- Funds flow from operations increased by 7% to C$959 million
- Cash flow up 3% to C$545 million
- All this in spite of a drop in production
Free cash flow did decline which was largely from an increase in capex.
I think they remain cautious about the industry outlook which explains why no dividend increase. It seems to me this was an outstanding quarter given the drop in production of 15k boe/d.