Husky first-quarter profit falls on lower gas prices, margins

Husky Energy Inc. (HSE-T) on Wednesday posted a 6-percent decline in first-quarter profit as a result of lower natural gas prices and tighter refining margins.

Canada's third-largest oil producer and refiner reported net income of $591 million or 60 cents per share for January-March, down from $626 million or 70 cents per share a year earlier.

Husky -- controlled by Hong Kong billionaire Li Ka-shing, chairman of Hutchison Whampoa Ltd and Cheung Kong (Holdings) Ltd -- produces oil and gas in Canada and Southeast Asia and operates refineries in British Columbia and Ohio.

Husky said cash flow, a key indicator of its ability to fund new projects and drilling, was $1.17 billion or $1.20 per share for the period, compared with $1.16 billion or $1.30 per share last year.

Total production before royalties averaged 320,000 barrels of oil equivalent per day (boe/d), compared with 310,000 boe/d a year earlier.