ORRÖN ENERGY AB - Record quarterly revenue of
USD 1.1 billion with an achieved oil price ofUSD 61 per barrel - Strong free cash flow generation of MUSD 526, operating cost below guidance at
USD 2.85 per boe and net debt reduced to belowUSD 3.5 billion - Dividend of
USD 1.80 per share corresponding to MUSD 512 for the financial year 2020, approved by the 2021 AGM - Strong production performance of 183 Mboepd, above mid-point of guidance for the quarter
- Johan Sverdrup Phase 1 production set to increase to 535 Mbopd ahead of schedule in
May 2021 - Key projects on track to deliver growth to over 200 Mboepd by 2023 and pipeline of new projects being matured to sustain production
- Decarbonisation Strategy on track to achieve carbon neutrality from 2025 from operational emissions
- World’s first certified carbon neutrally produced crude oil sale
Financial summary
3 months | 3 months | 12 months | |
| Production in Mboepd | 182.9 | 152.4 | 164.5 |
| Revenue and other income in MUSD | 1,111.9 | 695.2 | 2,564.4 |
| CFFO in MUSD | 750.2 | 638.3 | 1,528.0 |
| Per share in USD | 2.64 | 2.25 | 5.38 |
| EBITDAX in MUSD | 1,018.4 | 581.1 | 2,140.2 |
| Per share in USD | 3.58 | 2.05 | 7.53 |
| Free cash flow in MUSD | 526.2 | 406.7 | 448.2 |
| Per share in USD | 1.85 | 1.43 | 1.58 |
| Net result in MUSD | 68.9 | -310.6 | 384.2 |
| Per share in USD | 0.24 | -1.09 | 1.35 |
| Adjusted net result in MUSD | 149.8 | 66.0 | 280.0 |
| Per share in USD | 0.53 | 0.23 | 0.99 |
| Net debt in MUSD | 3,464.0 | 3,694.2 | 3,911.5 |
Comment from
“I am pleased to note that performance in the first quarter of 2021 has been about delivery on all fronts, which combined with the oil price recovery, yielded record financial results. And whilst the challenges of COVID-19 are still with us, we’ve continued to keep our main business activities on track.
“Our world class producing assets continue to outperform with excellent production efficiency, along with a strong HSE track record, driving our production for the quarter above the mid-point of the guidance range, whilst also maintaining our industry leading low operating costs.
“Johan Sverdrup continues to exceed expectations. Phase 1 production capacity is about to step-up to 535 Mbopd gross, and I expect, when the impact on the full field capacity has been assessed, we will see an increase above the current guidance of 720 Mbopd. Phase 2 of the project is progressing well with the offshore installation programme set to commence this quarter and remains on track for first oil in the fourth quarter of 2022.
“At the Greater
“With the projects we have underway we remain on target to deliver growth to over 200 Mboepd by 2023. I’m confident we can sustain at these levels with a pipeline of new projects that are being matured and an exciting exploration programme, targeting material resources.
“Financially we had a record quarter, with revenue of
“We continue to make good progress decarbonising our operations, with everything in place to achieve carbon neutrality from 2025. Our recent commitment to the Karskruv wind farm in
“We’ve had a strong start to the year, making good progress on our key business priorities and looking forward, I remain confident that we can continue to deliver resilient, sustainable, growth into the future.”
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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 - Q1 Report 2021-V2 - 20210429en
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