Husky Energy cut C$800 million ($549 million) from its 2016 budget and will scale back production guidance by around 15,000 boepd, the Canadian petroleum company said on Tuesday.

Husky Energy cuts 2016 budget

Canada

CALGARY, January 20, 2016 – Husky Energy cut C$800 million (USD 549 million) from its 2016 budget and will scale back production guidance by around 15,000 boepd, the Canadian petroleum company said on Tuesday.

Spending of C$2.1 billion-2.3 billion (USD 1.44 billion-1.58 billion) is expected in the next year, a figure lower than its previous estimate of C$2.9 billion-3.1 billion (USD 1.99 billion-2.13 billion), the company stated.

The company also suspended its Q4 dividend payment. In Q3, Husky had decided to pay out a dividend in stock instead of cash.

The multinational firm, run by Hong Kong billionaire Li Ka-Shing, said savings would be gained by delaying discretionary activity in Western Canada, although its Sunrise oil sands plant and three heavy oil thermal projects in the Lloydminster region on the Alberta border will not be affected.

Husky is also considering the partial sale of some pipelines and storage terminals in the Lloydminster region.

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