Husky Energy has announced it is conducting a strategic review that could lead to it selling its Canadian retail and commercial fuels business, as well as its Prince George. B.C., refinery.
“Our retail network and the Prince George refinery are excellent assets, with exceptional employees, which have made solid contributions to Husky over the years,” said company CEO Rob Peabody in a news release. “However, as we further align our heavy oil and downstream businesses to form one integrated corridor, we’ve taken the decision to review and market these non-core properties.
“We expect the businesses will be highly marketable, attracting strong interest and valuations. Husky delivers value to its customers and we anticipate that high level of quality and service will continue whether or not the businesses are sold.”
The company said its retail and commercial network consists of more than 500 stations, travel centres, cardlock operations and bulk distribution facilities from British Columbia to New Brunswick. The myHusky Rewards loyalty program has about 1.6 million members.
“Husky’s decision to review and consider a sale of non-core downstream assets comes as it increasingly focuses on core assets in its integrated corridor and on its offshore business in Atlantic Canada and the Asia Pacific region. The potential disposition is being undertaken independent of the outcome of Husky’s proposed acquisition of MEG Energy,” it said.
“The 12,000 barrel-per day Prince George refinery is located in Prince George, B.C., and processes light oil into low-sulphur gasoline and ultra-low sulphur diesel, along with other products. It supplies refined products to retail outlets in the central and northern regions of B.C.”
Husky said TD Securities Inc. is acting as its financial adviser, with Torys LLP as legal advisor.