Tycoon Li Ka-shing bailed out Husky Energy Inc., a major Canadian firm he controls, by injecting C$1.7 billion (US$1.3 billion) into it from stablemates in his flagship conglomerate, CK Hutchison Holdings Ltd. (00001.HK).
Power Assets Holdings Ltd. (00006.HK) and Cheung Kong Infrastructure Holdings Ltd. (01038.HK) together paid that amount Monday for 65 percent of the midstream operations of Husky, which posted a record loss last year amid the worst oil market downturn in decades, Bloomberg reported.
Husky will keep operating those assets, which include about 1,900 kilometers of pipelines and tanks able to store 4.1 million barrels of oil.
“For a large part, it’s just them moving money around, but it helps Husky’s balance sheet,” Michael Dunn, an analyst at FirstEnergy Capital Corp. in Calgary, told Bloomberg.
Energy companies are selling assets, reducing spending and cutting workers as US crude prices, almost two years into a slump, hover above US$40 a barrel.
Husky’s sale of the midstream assets is part of a plan for divestitures laid out last year that also includes oil and natural-gas-producing properties across western Canada and a royalty interest on some of its output.
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