- Record quarterly revenue of
USD 1.3 billion with a realised oil price ofUSD 68 per barrel for the second quarter - Record free cash flow generation of MUSD 949 for the six month period, operating costs below guidance at
USD 2.8 per boe and net debt reduced to belowUSD 3.2 billion - Completed
USD 2 billion inaugural investment grade bond issuance - Record quarterly production above guidance at 190 Mboepd and full year production guidance increased to between 180 to 195 Mboepd
- Johan Sverdrup Phase 2 planned offshore installations completed on schedule and full field production capacity increased to 755 Mbopd gross when Phase 2 comes on line in the fourth quarter of 2022
- Key projects on track to deliver growth to over 200 Mboepd by 2023 and
Kobra East /Gekko project sanctioned - Decarbonisation plans on track to achieve carbon neutrality from 2025, with around 60% of production already independently certified as carbon neutrally produced
6 months | 3 months | 6 months | 3 months | 12 months | |
Production in Mboepd | 186.4 | 189.8 | 157.7 | 162.9 | 164.5 |
Revenue and other income in MUSD | 2,384.7 | 1,272.8 | 1,097.7 | 402.5 | 2,564.4 |
CFFO in MUSD | 1,487.9 | 737.7 | 898.1 | 259.8 | 1,528.0 |
Per share in USD | 5.23 | 2.59 | 3.16 | 0.91 | 5.38 |
EBITDAX in MUSD | 2,078.0 | 1,059.6 | 916.2 | 335.1 | 2,140.2 |
Per share in USD | 7,31 | 3.73 | 3.23 | 1.18 | 7.53 |
Free cash flow in MUSD | 949.1 | 422.9 | 381.5 | -25.2 | 448.2 |
Per share in USD | 3.34 | 1.49 | 1.34 | -0.09 | 1.58 |
Net result in MUSD | 234.6 | 165.7 | -131.8 | 178.8 | 384.2 |
Per share in USD | 0.82 | 0.58 | -0.46 | 0.63 | 1.35 |
Adjusted net result in MUSD | 308.4 | 158.6 | 117.3 | 51.3 | 280.0 |
Per share in USD | 1.08 | 0.56 | 0.41 | 0.18 | 0.99 |
Net debt in MUSD | 3,189.4 | 3,189.4 | 3,796.1 | 3,796.1 | 3,911.5 |
Comment from
“I’m pleased to report record production and financial results in the second quarter, backed by strong operating performance and the further strengthening of oil prices. Whilst certain challenges of the COVID-19 crisis will remain for the foreseeable future, we’ve normalised the management of these and continue to deliver on our main business priorities.
“Our world class producing assets continue to outperform with excellent production efficiency, along with industry leading low operating costs, delivering production in the quarter above the mid-point of the guidance range, leading us to increase our full year production guidance.
“Johan Sverdrup keeps on delivering above expectations. Phase 1 production ramped up to 535 Mbopd gross ahead of schedule and the full field production guidance has been lifted to 755 Mbopd. Phase 2 of the project is making good progress, with key offshore installations completed on schedule, and the project remains firmly on track for first oil in the fourth quarter of 2022.
“At the Greater
“Our key projects remain on track to deliver growth to over 200 Mboepd by 2023. We’ve a strong track record of growing resources and I’m confident that we can continue to sustain the business at these production levels. We have a pipeline of potential new projects, the first of which has just been sanctioned, and an exciting exploration programme, targeting material resources.
“The business delivered record financial results, with free cash flow of MUSD 949 for the first six months and net debt reduced to below
“We continue to make good progress on our decarbonisation plans, with around 60% of our production today carbon neutrally produced, and we’re on target for the business as a whole to be carbon neutral from 2025. We’ve already made several certified carbon neutrally produced crude sales, which I believe will become a key value differentiator for
“We’ve delivered record results in the first half of the year, our key business priorities are on track and looking forward I’m confident the business will continue to deliver resilient sustainable growth.”
Audiocast presentation
Listen to
Sweden +46 8 56642651
UK +44 3333000804
United States +1 6319131422
Norway +47 23500243
Access Pin : 44982316
Link: https://edge.media-server.com/mmc/p/42amzuhx/ftagmax/aud
For further information, please contact:
VP Investor Relations
Tel: +41 22 595 10 14
edward.westropp@lundin-energy.com
Head of
Tel: +46 701 11 26 15
robert.eriksson@lundin-energy.com
This information is information that
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 Q2 2021 Release V3 20210728en
© OMX, source