Tuesday, April 14, 2009

Husky Energy

I am reviewing this stock (TSX-HSE) today as I have received its annual report for December 2008. I have a very small position in this company as it is into oil and gas. Since our TSX has a high number of energy companies, I like to keep tabs on what they are doing. This is a stock that is on Mike Higgs’ list at www.dividendgrowth.org/Report.htm.

I only bought this stock in 2008 and it has gone down ever since. The company has announced that the dividend is being reduced. This is not surprising as oil prices have fallen. When I last reviewed this stock in July 2008, I got an earnings estimate of $5.00 for 2008. The earnings for this stock came in at $4.42. Since my July review, the earnings estimates were lower at the end of March. Since that time, new estimates have come in even lower and this company is expected to earn less than $2.00 in 2009. The cash flow estimates are also quite low.

For this stock all the growth figures for Revenues, Cash Flow, dividend increases, earnings and Book Value are all quite good to December 2008 annual report. However, this company obviously had problems in the 4th quarter of 2008. They only made $.27 a share in this quarter compared with $1.26 a share in the same quarter the previous year. They were affected by commodity price declines. Because of this, they reduced their dividend by 40%. They also shelved some oil sands projects.

Tomorrow I will look at what the analyst say.

This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky works in Western Canada, in off-shore Eastern Canada and in off-shore China and Indonesia. Its web site is www.huskyenergy.ca. See my spreadsheet on this company at www.spbrunner.com/stocks/hse.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.

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