Husky looks to sell re­fin­ery

The Prince George Citizen - - Local -

Husky En­ergy Inc. is launch­ing a strate­gic re­view that could re­sult in it sell­ing its Cana­dian re­tail and com­mer­cial fu­els busi­ness and its small Prince Ge­orge re­fin­ery.

The Cal­gary-based oil­sands pro­ducer says it prefers to fo­cus on its in­te­grated cor­ri­dor of up­stream and down­stream as­sets in Al­berta, Saskatchewan and the U.S. Mid­west as well as off­shore busi­nesses in At­lantic Canada and the Asia Pa­cific re­gion, adding the de­ci­sion is not re­lated to its of­fer that expires next week to buy oil­sands ri­val MEG En­ergy Corp.

Husky has more than 500 ser­vice sta­tions, travel cen­tres, card­lock op­er­a­tions and bulk dis­tri­bu­tion fa­cil­i­ties from Bri­tish Columbia to New Brunswick. Its myHusky Re­wards loy­alty pro­gram has about 1.6 mil­lion mem­bers.

The 12,000-bar­rel-per-day re­fin­ery in Prince Ge­orge pro­cesses light oil into gaso­line, diesel and other prod­ucts for nearby re­gions of B.C. It owns two re­finer­ies and is half-owner of a third in the United States.

CIBC an­a­lyst Jon Mor­ri­son said Tues­day that the ex­pected value of these as­sets is about $835 mil­lion.

“We be­lieve the re­tail net­work nat­u­rally has a cou­ple strate­gic buy­ers that should be in­ter­ested, while the re­fin­ery has a smaller list of po­ten­tial pur­chasers given the scale, size and lo­ca­tion of the fa­cil­ity,” he said in an email.

Spokesman Mel Duvall said Husky started sell­ing fuel to con­sumers in 1938 shortly af­ter the orig­i­nal owner built a small re­fin­ery in Cody, Wyo. The re­fin­ery was moved to Lloy­d­min­ster on the Al­berta-Saskatchewan bor­der in 1946.

CEO Rob Pe­abody said in a news re­lease the busi­nesses are “highly mar­ketable” and will at­tract strong in­ter­est and val­u­a­tions.

CIT­I­ZEN FILE PHOTO

Husky En­ergy Inc. is con­sid­er­ing sell­ing its Prince Ge­orge re­fin­ery.

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