Husky Energy profits drop 74%

Calgary-based Husky Energy reported third quarter earnings of $325 million, or 38 cents a share, on Wednesday, kicking off what's expected to be an ugly reporting season from Canada's oil and gas industry.

The profit was on par with what analysts had expected.

Earnings were down 74% from the $1.50 a share Husky made in the same period in 2008.

The company reported revenue of $3.9 billion, half the $7.72 billion Husky brought in during the same period a year earlier.

As a producer focused on oil, Husky will likely have done better than the many natural gas-weighted companies in the sector. Gas prices have lagged behind a recent rebound in oil prices, mainly because of a glut of supplies in storage.

Still, oil companies have been hit by over-capacity in the refining end of the business and by a higher Canadian dollar, which makes exports less competitive.