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June 1 (Reuters) - Husky Energy Inc HSE.TO , Canada's No. 3
integrated oil company, said it expected to generate free cash
flow and may reinstate a cash dividend as crude oil prices have
rallied in recent weeks.
The company said it could generate about C$800 million
($611.48 million) in free cash flow if oil rises to $50 from $40
per barrel on an annualized basis.
The oil producer said it was on track to complete eight
projects by the end of this year, which would contribute 90,000
barrels per day of new production once fully ramped up.
Husky, controlled by Hong Kong billionaire Li Ka-shing,
produces oil and natural gas in Canada and Southeast Asia, and
holds numerous exploration licenses offshore of Atlantic Canada.
The company had cut its budget and production outlook and
suspended quarterly dividend in January, a few months after
surprising investors by switching to a stock dividend from cash
payments.
Husky Energy, which has reached agreements for asset sales
worth about C$2.8 billion this year, said it expected to achieve
its target of about two-times net debt-to-cash flow from
operations.
($1 = 1.3083 Canadian dollars)