Financial Statement Analysis Report: Husky Energy Inc. 2017

This report presents an analysis of Husky Energy Inc.'s 2017 annual financial statements, as per the provided assignment brief. It examines key financial metrics including net income before income tax, total depreciation expenses, the net book value of property, plant, and equipment, diluted earnings per share, current assets, the date of the MD&A, retained earnings, the auditor, the chair of the board, and the change in total net revenue from the preceding year. The report extracts and presents the relevant data points from the annual report, providing insights into Husky Energy's financial performance during the specified period. The assignment follows the guidelines outlined in the "Introduction to Financial Accounting in the 21st Century" ebook and aims to enhance understanding of financial statement analysis.

Running Head: UNDERSTANDING FINANCIAL STATEMENTS
Understanding Financial Statements
Name of the Student
Name of the University
Author’s Note

1UNDERSTANDING FINANCIAL STATEMENTS
Table of Contents
STEP 2: Cover of the Report.....................................................................................................2
STEP 3: Report..........................................................................................................................3
References..................................................................................................................................5

2UNDERSTANDING FINANCIAL STATEMENTS
STEP 2: Cover of the Report
Full and Legal Name of the Company: HUSKY ENERGY INC.
Website Address of the Company: https://huskyenergy.com/
Description of Business: HUSKY ENERGY INC. has two types of business activities or
operations; they are Integrated Corridor and Offshore. The business operation of integrated
corridor involves in the production of natural gas, thermal bitumen and other relevant liquids.
These business operations take place in Western Canada, the Lloydminster upgrading and
refining complex that is a 35 per cent working interest along with operation of Husky
Mindstream Limited; and the U.S. Midwest’s refineries of the Lima, Superior and Toledo.
After that, the business operations of Offshore consists of operations as well as
explorations in the region of Asia Pacific; primary offshore Indonesia and China and in the
region of Atlantic offshore Newfoundland and Labrador. These are the two major business
operations of the company.
Period of Audited Annual Report: 1st January 2017 to 31st December 2017
Website Address of All the Documents Consulted in SEDAR:
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00014974
Name:
Student Number:
Course:
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Term:

3UNDERSTANDING FINANCIAL STATEMENTS
STEP 3: Report
1) Net Income before Income Tax (do not consider comprehensive income)
It can be seen from the 2017 Annual report of HUSKY ENERGY INC. that the company has
reported CAD424 million and CAD950 million for the years 2017 and 2016 respectively as
the net income before income tax. This information can be found in page no. 83 of audited
2017 Annual Report (huskyenergy.com, 2019).
2) Total of Depreciation Expenses (or Amortization)
It can be seen from the 2017 Annual Report of HUSKY ENERGY INC. that the reported
depletion, depreciation, amortization and impairment expenses of the company for the year
2017 and 2016 is CAD2882 million and CAD2462 million respectively. This information can
be found in page no. 83 of audited 2017 Annual Report.
3) Property, Plant and Equipment (net book value)
As per the 2017 Annual Report of HUSKY ENERGY INC., the net book value of the
property, plant and equipment in the years 2017 and 2016 are CAD24,078 million and
CAD24,593 million respectively. This information can be found in page no. 82 of audited
2017 Annual Report (huskyenergy.com, 2019).
4) Diluted Earnings per Share
It can be observed from the 2017 Annual Report of HUSKY ENERGY INC. that the diluted
Earnings per Share of the company for the years 2017 and 2016 are 0.75 and 0.88. This
information can be found in page no. 83 of audited 2017 Annual Report.
5) Current Assets

4UNDERSTANDING FINANCIAL STATEMENTS
According to the 2017 Annual Report of HUSKY ENERGY INC., the current assets of the
company are cash and cash equivalent, accounts receivable, income taxes receivable,
inventories, prepaid expenses and retracted cash. This information can be found in page no.
82 of audited 2017 Annual Report (huskyenergy.com, 2019).
6) When was the MD&A dated?
The date of the MD&A of HUSKY ENERGY INC. is 28th February 2018. This information
can be found in page no. 17 of audited 2017 Annual Report.
7) Retained Earnings
As per the 2017 Annual Report of HUSKY ENERGY INC., the amount of retained earnings
of the company in 2017 and 2016 are CAD9,207 million and CAD8,457 million respectively.
This information can be found in page no. 82 of audited 2017 Annual Report
8) Who was the Auditor?
According to the 2017 Annual Report, the auditor of HUSKY ENERGY INC. was KPMG
LLP (huskyenergy.com, 2019).
9) Who was the Chair of the Board at the time the annual report was issued?
It can be seen from the 2017 Annual Report of HUSKY ENERGY INC. that the Chair of the
Board of Directors of the company at the time of the issue of the annual report were Victor
T.K. Li and Canning K.N. Fok. This information can be found in page no. 03 of audited 2017
Annual Report
10) What was the change in total Net Revenue during the year from the preceding year?
It can be seen from the 2017 Annual Report of HUSKY ENERGY INC. that the net revenue
of the company for the years 2017 and 2016 are CAD18,583 million and CAD12,919 million

5UNDERSTANDING FINANCIAL STATEMENTS
respectively. Hence, 2017 witnessed CAD5,664 million increase in net revenue from 2017;
and the increased percentage is 43.84 (huskyenergy.com, 2019).
References
Energy, H. (2019). Overview - Husky Energy. Huskyenergy.com. Retrieved 31 January 2019,
from https://huskyenergy.com/about/overview.asp
Huskyenergy.com. (2019). Annual Report 2017. Retrieved 31 January 2019, from
https://huskyenergy.com/downloads/abouthusky/publications/annualreports/
HSE_Annual2017.pdf