- Quarterly revenue of
USD 1.5 billion with a realised oil price ofUSD 72 per barrel for the third quarter - Record free cash flow generation of
USD 1.6 billion for the first nine months, operating costs below guidance atUSD 2.9 per boe and net debt reduced toUSD 2.6 billion - Board of Directors anticipates to propose to the Annual General Meeting 2022, a 2021 dividend of
USD 2.25 per share, corresponding to MUSD 640, an increase of 25 percent from 2020 dividend - Record production of 194 Mboepd for third quarter and full year production anticipated towards the upper end of the guidance range of 180 to 195 Mboepd
- Key projects on track and first oil achieved at the Rolvsnes and Solveig projects, on schedule and below budget
- Strategic acquisition of 25 percent working interest from OMV in the high quality Wisting oil development, taking the Company’s interest to 35 percent and adding 130 MMboe fully appraised net contingent resources for
USD 2.5 per boe - Further acceleration of decarbonisation plans to achieve carbon neutrality by 2023 from operational emissions
Financial summary
9 months | 3 months | 9 months | 3 months | 12 months | |
Production in Mboepd | 188.8 | 193.6 | 157.6 | 157.5 | 164.5 |
Revenue and other income in MUSD | 3,862.9 | 1,478.2 | 1,784.7 | 687.0 | 2,564.4 |
CFFO in MUSD | 2,499.9 | 1,012.0 | 1,251.3 | 353.2 | 1,528.0 |
Per share in USD | 8.79 | 3.56 | 4.40 | 1.24 | 5.38 |
EBITDAX in MUSD | 3,360.6 | 1,282.6 | 1,431.8 | 515.6 | 2,140.2 |
Per share in USD | 11.82 | 4.51 | 5.04 | 1.81 | 7.53 |
Free cash flow in MUSD | 1,622.9 | 673.8 | 545.7 | 164.2 | 448.2 |
Per share in USD | 5.71 | 2.37 | 1.92 | 0.58 | 1.58 |
Net result in MUSD | 372.1 | 137.5 | 80.5 | 212.3 | 384.2 |
Per share in USD | 1.31 | 0.48 | 0.28 | 0.74 | 1.35 |
Adjusted net result in MUSD | 542.4 | 234.0 | 193.1 | 75.8 | 280.0 |
Per share in USD | 1.91 | 0.83 | 0.68 | 0.27 | 0.99 |
Net debt in MUSD | 2,646.9 | 2,646.9 | 3,706.8 | 3,706.8 | 3,911.5 |
Comment from
“I’m pleased to report another set of record production and financial results in the third quarter, underpinned by continued strong operational performance and further strengthening of oil and gas prices. Whilst certain challenges of the COVID-19 crisis remain, we’ve normalised the management of these and continue to deliver on our key business priorities.
“Our world class producing assets keep on outperforming, with excellent production efficiency and industry leading low operating costs, delivering record production in the third quarter. Full year production is anticipated to be towards the upper end of our guidance range.
“Johan Sverdrup continues to consistently perform at a high level and Phase 2 of the project, which will boost gross production to 755 Mbopd, is making great progress and remains firmly on track for first oil in the fourth quarter of 2022.
“At the Greater
“I’m pleased to announce the purchase of a further 25 percent interest in the Wisting oil development, which adds resources of almost two times our 2021 production volumes. The deal takes the Company’s interest to 35 percent in this high quality, 500 MMbo development, which has strong economics and will be powered from shore. This strategic deal, done at a purchase price of
“We delivered free cash flow of
“We continue to be firmly positioned as an industry leader on carbon emissions and during the third quarter we further accelerated our decarbonisation plans to become carbon neutral by 2023 from operational emissions. With around 60 percent of our production today produced as carbon neutral and with a clear deliverable pathway to carbon neutrality, I see this as a key value differentiator for
“The Company has again delivered excellent results, all our key business priorities are on track and we’ve made a strategic value accretive acquisition, which together positions us to keep delivering resilient sustainable growth.”
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edward.westropp@lundin-energy.com
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robert.eriksson@lundin-energy.com
Forward-looking statements
Certain statements made and information contained herein constitute “forward-looking information” (within the meaning of applicable securities legislation). Such statements and information (together, “forward-looking statements”) relate to future events, including Lundin Energy’s future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will prove to be correct and such forward-looking statements should not be relied upon. These statements speak only as on the date of the information and
Attachment
Lundin Energy - Q3 report 2021 - V5 - 29102021en
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