Canadian oil and gas producer Husky Energy Inc (HSE.TO) reported a smaller loss on Friday, helped partly by higher oil prices and an increase in production.

Oil prices began to rise late last year after a two-year slump, now hovering around US$50 per barrel, as an OPEC-led production cut and rebounding demand slowly erode a global glut.

The company's second-quarter production rose to 320,000 barrels of oil equivalent per day (boed), from 316,000 boed, a year earlier.

Husky, which is controlled by the Hong Kong billionaire Li Ka-Shing, realized $41.48 per barrel of oil equivalent (boe) in the second quarter, up from $34.59 per boe a year earlier.

The Calgary, Alberta-based company reported a net loss of $93 million, or 10 Canadian cents per share, in the second quarter ended June 30, compared with a loss of $196 million, or 20 Canadian cents a share, a year earlier

In the year-ago quarter, Husky had incurred a $105 million after-tax loss related to dispositions, property impairment and asset write-downs.

Rival Encana Corp (ECA.TO) reported a second-quarter profit on Friday.