July 25 (Reuters) - Husky Energy Inc HSE.TO reported a better-than-expected quarterly profit on Thursday, as higher Canadian crude prices following Alberta government's mandatory output cuts more than offset the company's lower production and weak refining margins.
The Calgary-based company said average realized prices rose 7.3% to $53.35 per barrel of oil equivalent after the mandatory curtailment on oil production during the quarter to ease export pipeline congestion.
Husky's average quarterly production fell 9.2% to 268,400 barrels of oil equivalents a day in the reported quarter as the company complied with the curtailments.
The government's move has been a shot in the arm for some producers, but been detrimental to some integrated companies such as Husky Energy and Imperial Oil IMO.TO , which benefit from low-cost oil to run through their refineries.
Average realized U.S. refining and marketing margin fell to $14.16 per barrel of oil in the quarter from $16.66 a year earlier.
Husky's throughput, the amount of crude processed at its refineries, also fell 4.2% to 340,000 barrels per day due to planned turnarounds at two of its refineries and as operations remained suspended at another refinery.
Net earnings fell to C$370 million, or 36 Canadian cents a share, in the second quarter ended June 30, from C$448 million, or 44 Canadian cents a share, a year earlier. earnings included a one-time tax gain of C$233 million and a negative adjustment of C$77 million.
Excluding items, the company earned 32 Canadian cents per share, well above the 26 Canadian cents expected by analysts, according to IBES data from Refinitiv.