THESE MATERIALS DO NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE OR A SOLICITATION OF AN OFFER TO PURCHASE THE SECURITIES DESCRIBED IN SUCH MATERIALS IN
- Combination of Lundin Energy’s E&P business with Aker BP, to create the leading European independent E&P company, approved by shareholders from both companies, with completion of the transaction anticipated on
30 June 2022 - Johan Sverdrup Phase 2 processing platform successfully installed, with first oil firmly on track for the fourth quarter of 2022
- Record quarterly revenue of BUSD 1.98 with an achieved oil price of
USD 104 per barrel - Strong free cash flow of MUSD 822, operating costs in line with guidance at
USD 3.7 per boe and net debt reduced to BUSD 2.1 - Quarterly dividend increased by 25 percent to
USD 0.5625 per share, payable until completion of the Aker BP transaction, approved by the 2022 AGM - Strong production performance of 191 Mboepd, towards the top of the guidance range for the quarter
- Five new projects, including the large Wisting development, heading towards sanction by the end of 2022
- Delivering on Lundin Energy’s Decarbonisation Plan with the recent completion of the Company’s first wind farm and electrification of
Edvard Grieg on track for end 2022 - Launch of Lundin Energy Renewables business, which is positioned for growth, with
Daniel Fitzgerald as the proposed CEO
Financial summary1
3 months | 3 months | 12 months | |
Production in Mboepd | 191.4 | 182.9 | 190.3 |
Revenue and other income in MUSD | 1,976.9 | 1,111.9 | 5,484.7 |
CFFO in MUSD | 1,009.6 | 750.2 | 3,058.0 |
Per share in USD | 3.55 | 2.64 | 10.75 |
EBITDAX in MUSD | 1,888.5 | 1,018.4 | 4,822.8 |
Per share in USD | 6.64 | 3.58 | 16.96 |
Free cash flow in MUSD | 822.3 | 526.2 | 1,645.5 |
Per share in USD | 2.89 | 1.85 | 5.79 |
Net result in MUSD | 468.5 | 68.9 | 493.8 |
Per share in USD | 1.65 | 0.24 | 1.74 |
Adjusted net result in MUSD | 395.4 | 149.8 | 795.7 |
Per share in USD | 1.39 | 0.53 | 2.80 |
Net debt in MUSD | 2,062.2 | 3,464.0 | 2,747.9 |
1 All numbers in this table relate to continuing and discontinued operations combined. For a further breakdown between continuing and discontinued operations, reference is made to pages 29-30
Comment from
“I’m pleased to report that the combination of Lundin Energy’s E&P business with Aker BP, to create the leading European Independent E&P company, has now received approval from the shareholders of both companies. The combination is a tremendous deal, drawing on the best of both companies; creating a
“For the
“In the meantime, our business continues to deliver on all fronts, with strong production and financial performance in the first quarter of 2022. Our world class assets continue to outperform, with production during the quarter towards the top of the guidance range and with industry leading low costs and low carbon emissions.
“Johan Sverdrup continues to exceed expectations. The Phase 2 processing platform was successfully installed on schedule and the project is on target to achieve first oil in the fourth quarter of 2022, which will boost production to 755 Mbopd gross.
“At the Greater
“Our Decarbonisation Plan is making great progress, with the recent completion of our first wind farm in
“Financially we had a very strong quarter, with record revenue of BUSD 1.98, delivering significant free cash flow of MUSD 822, allowing us to further reduce net debt to BUSD 2.1, despite a significant build of working capital. This really shows the quality of our business, allowing us to provide an increased quarterly dividend, that will continue until completion of the Aker BP transaction.
“Our mission, in everything we do, is long-term value creation for shareholders and we’ve had a great start to the year. We continue to deliver very strong results and the transformation of our business with the combination with Aker BP and the establishment of an exciting new renewables energy business means we can look forward to many more years of value creation.”
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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 2022 - 27042022en
Source:
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