Husky Energy job cuts reach 1,400 as company ponders asset sale

Husky Energy announced its job cuts this year now total 1,400 as the company posted a third-quarter loss and revealed potential plans to sell assets in response to the crash in oil prices.

Energy giant posts $101M adjusted loss in Q3, net loss of $4.1B including impairments and write downs

A Husky employee at the company's Ram River Gas Plant in Ram River, Alta. (Husky Energy/Handout)

Husky Energy announced its job cuts this year now total 1,400 as the company posted a third-quarter loss and revealed potential plans to sell assets in response to the crash in oil prices.

About 1,120 of those jobs were contractors while the other 280 were full-time employees, and the cuts aren't done, yet.

"Additional workforce adjustments will be undertaken as required in line with the business plan," Husky said in a statement, adding the company-wide salary freeze will also be extended.

In addition, Husky is "considering a disposition of select oil and natural gas properties in its Western Canada business unit," the company revealed.

"Such a disposition would not include heavy oil or oil sands assets," the third-quarter release stated.

"This would allow for a more focused capital program with a much larger proportion of capital deployed to higher return assets in a low oil price environment."

Quarterly losses

Husky recorded an adjusted net loss of $101 million in the third quarter, which doesn't include charges for impairments and write downs.

The net loss was $4.1 billion when factoring in an after-tax impairment of $3.8 billion and a write down of $167 million related to legacy oil and natural gas assets in Western Canada,

These are non-cash charges "stemming from a downward revision in Husky's longer term oil and natural gas price outlook," the company stated.

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