Page 6 - Sphere No.10 (Dec 2003)

SPHERE
4
H U T C H I S O N U P D A T E S
Newsbites
Husky Energy has acquired all of the
issued and outstanding shares of Marathon
Canada Ltd. and the Western Canadian
assets of Marathon International
Petroleum Canada for a total purchase
price of US$588 million. Production from
Marathon Canada is approximately 27,000
gross barrels of oil equivalent per day
(boe/d).The effective date of the transaction
was Oct. 1, 2003.
In a separate transaction, Husky agreed
to sell certain of the Marathon Canada oil
and gas properties with gross production
of approximately 7,500 boe/d to a third
party for US$320 million.The acquisition
will add approximately 19,500 boe/d to
Husky’s production.
Husky Reports 40%YOY Earnings Rise
Acquisition Lifts Capacity
Husky Energy has signed a petroleum
contract with China National Offshore Oil
Corp. (CNOOC) for the 04/35 exploration
block in the East China Sea.
The block is located 350km east of Shanghai.
This is the first exploration contract signed by
Husky with CNOOC in the region and is
Husky’s sixth offshore contract with
CNOOC. Husky currently holds four
exploration blocks comprising more than
15,000 sq. km in the South
China Sea and has a
40% interest, in
partnership with
CNOOC, in the
Wenchang 13-1/2
offshore oil fields.
The Sea Rose, Husky Energy’s Floating
Production Storage and Offloading (FPSO)
facility, was launched in Korea in July.
Preparations continue for its deployment at
theWhite Rose oil field in St. John's,
Newfoundland and Labrador, scheduled to
begin production in 2005/06.The vessel
will sail from Korea to Newfoundland in
January 2004 where the topside production
facilities will be installed before deployment
to the field.
FPSO is Ready to Set Sail China Sea Exploration
Husky Energy Inc. reported third quarter
net earnings of C$243 million (approximately
US$144 million) and C$1.1 billion for the
first nine months of 2003.
Net earnings rose 40% year on year or C$0.54
per share (diluted) in Q3 compared with
C$173 million or C$0.38 per share (diluted)
in Q3 2002.
Cash flow from operations in Q3 was C$604
million or C$1.42 per share (diluted), up from
C$590 million or C$1.39 per share (diluted)
in the comparable period the year before.
Production averaged 300,200 barrels of oil
equivalent (boe) per day, compared with
305,100 boe per day in Q3 2002, a decrease
of 2%, mainly due to divestitures, turnarounds
at producing facilities and natural reservoir
declines.
Husky’s net earnings for the first nine months
of 2003 were C$1.1 billion or C$2.60 per
share (diluted) compared with C$562 million
or C$1.31 per share (diluted) in the first nine
months of 2002, an increase of 91%. Husky’s
debt meanwhile decreased by C$834 million.
As at Sept. 30,
2003, net debt stood at
C$1.2 billion, down 40% from
C$2.1 billion on Dec. 31, 2002.
Hands Free
Hutchison is
introducing an accessory
to the UK market that
allows mobile-phone
users to make and receive mobile calls without
the need to hold their handsets and without
troublesome wire attachments.The Bluetooth
Clip Headset, manufactured by i.Tech
Dynamic, a division of Hutchison Harbour
Ring (HHR), deploys Bluetooth wireless
technology that enables electronic devices
to communicate with each other.Thus, when
the phone rings it can be conveniently left in
a pocket or handbag while providing a perfect
signal to a light and compact “earphone”.
The launch leverages on upcoming legislation
on the use of mobile phones when driving.
The product will also be introduced in
other markets.
The “Watsons Water
Tree” (right) turned
heads at the Lifestyle
Asia Design Fair 2003
held in December.
The exhibit, created
from 800 Watsons
Water bottles, marked
the completion of the
company’s centennial
campaign – “Year of
Hong Kong Creativity.”
applause
Two ASW store managers have won the
Hong Kong Retail Management
Association “2003 Service & Courtesy
Award.” They are Clement Yip Ming-
chi of Fanling PARKnSHOP and
Jennifer Tse of Hing Wai Building
Watson’s Wine Cellar. Other winners
included Watsons Health and Fitness
Advisor Wing Tsui in the category
“Supermarkets / Convenience Stores
Frontline Level,” and Assistant Store
Manager Susan Wan of Nuance-
Watson in the “Department Store
Supervisory Level” category.
E N E R G Y & I N F R A S T R U C T U R E
Tree-mendous
R E T A I L & M A N U F A C T U R I N G