Update on second quarter 2021 financial results and audiocast details for 28 July 2021

Update on second quarter 2021 financial results and audiocast details for 28 July 2021

14 July 2021

Lundin Energy AB (Lundin Energy) will publish its financial report for the second quarter 2021 on Wednesday, 28 July 2021. For the second quarter 2021, Lundin Energy will expense pre-tax exploration and appraisal costs of approximately MUSD 119 and recognise a net foreign exchange gain of approximately MUSD 45.

Exploration and appraisal costs
It is the Company’s policy to capitalise costs associated with its exploration and appraisal activities and if it is determined that a commercial discovery has not been achieved, the associated costs are charged to the income statement. For the second quarter of 2021, Lundin Energy will incur a pre-tax charge to the income statement of approximately MUSD 119 relating to exploration and appraisal costs. These costs will be offset by a tax credit of approximately MUSD 93. The costs are mainly related to the Shenzhou well in PL722, the Iving wells in PL820S and relinquished licences.

Notes issuance and foreign exchange gain
Lundin Energy issued USD 2 billion of Senior Notes (the Notes) during the second quarter of 2021 with a fixed interest rate. The Company used the gross proceeds of the Notes issuance, in combination with cash on hand, to repay USD 2 billion of the corporate credit facility term loans with a floating interest rate. As a result, part of the outstanding interest rate hedge contracts are no longer considered effective under hedge effectiveness testing. The mark-to-market fair value of these ineffective contracts of approximately MUSD -38 (loss) will be recognised as a non-cash item in the income statement during the second quarter of 2021. As a result of the USD 2 billion repayment of the corporate credit facility term loans, part of the unamortized capitalised financing fees were expensed during the second quarter.

Lundin Energy will recognise a net foreign exchange gain of approximately MUSD 45 for the second quarter of 2021. The Norwegian Krone was stable against the US Dollar and the Euro strengthened against the US Dollar by approximately 1 percent during the second quarter of 2021. The foreign exchange gain is largely non-cash and mainly relates to the revaluation of loan balances at the prevailing exchange rates at the balance sheet date.

Change in under/overlift balances
Lundin Energy recognises income based on its sold volume (sales method). Consequently, changes in inventory and under/overlift balances are reported as an adjustment to cost, valued at production cost, including depletion. During the second quarter of 2021, Lundin Energy was underlifted by 10.1 Mboepd.

Revenue from crude oil sales from third parties
Lundin Energy markets its own crude oil production and at times markets crude oil from third parties. For the second quarter 2021, revenue from the sale of crude oil from third parties amounted to MUSD 171.8 offset by the purchase of crude oil from third parties of MUSD 170.4, resulting in a gross profit of MUSD 1.4 on third party activities for the second quarter 2021.

Release of report and audiocast on 28 July 2021
Lundin Energy’s financial report for the second quarter 2021 will be published on Wednesday 28 July at 07:30 CEST, followed by a live audiocast at 14:00 CEST where Nick Walker, President and CEO, and Teitur Poulsen, CFO, will be commenting on the report and the latest developments in Lundin Energy.

Follow the presentation live on www.lundin-energy.com or dial in using the following telephone numbers:

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


The second quarterly dividend instalment of USD 0.45 per share will amount to SEK 3.81 per share (June 2021)

The second quarterly dividend instalment of USD 0.45 per share will amount to SEK 3.81 per share

The second quarterly dividend instalment of USD 0.45 per share will amount to SEK 3.81 per share

28 June 2021

Lundin Energy AB (Lundin Energy) announces that the second quarterly dividend instalment of USD 0.45 per share will amount to SEK 3.81 per share, with a total amount of MSEK 1,083, corresponding to approximately MUSD 128.

Information about the first quarterly instalment of the proposed dividend:

Amount per share
(SEK)
Total dividend amount
(MSEK)
Ex-dividend dateRecord dateExpected payment date
3.811,0831 July 20212 July 20217 July 2021

The Annual General Meeting of Lundin Energy held on 30 March 2021 resolved on a dividend for 2020 of USD 1.80 per share, to be paid in quarterly instalments of USD 0.45 per share.

According to the dividend resolution, before payment, each quarterly dividend of USD 0.45 per share shall be converted into a SEK amount based on the USD to SEK exchange rate published by Sweden’s central bank (Riksbanken) four business days prior to each record date (rounded off to the nearest whole SEK 0.01 per share) and the exchange rate used for the conversion is 8.4708.

Information about the approved dividend is available on www.lundin-energy.com.

Lundin Energy AB’s Nomination Committee – June 2021

Lundin Energy AB’s Nomination Committee

Lundin Energy AB’s Nomination Committee

24 June 2021

Lundin Energy AB (Lundin Energy) is pleased to announce the composition of the Nomination Committee for the 2022 Annual General Meeting (AGM) to be held on 31 March 2022 in Stockholm.

The Nomination Committee has been formed with the following members:

  • Oskar Börjesson (Livförsäkringsbolaget Skandia, ömsesidigt)
  • Aksel Azrac (Nemesia S.à.r.l.)
  • Ian H. Lundin, Chairman of the Board of Directors of Lundin Energy

At the Nomination Committee’s first meeting, Aksel Azrac was elected as Chairman of the Nomination Committee.

The Nomination Committee shall make recommendations to the 2022 AGM regarding:

  • Election of the Chairman of the 2022 AGM
  • Election of members of the Board of Directors, including number of members
  • Election of the Chairman of the Board of Directors
  • Remuneration of the members of the Board of Directors, distinguishing between the Chairman and other members, and remuneration for Board Committee work
  • Election of the auditor and remuneration of the auditor
  • Nomination Committee Process for the 2023 AGM, if any amendments are proposed to the Process for the 2022 AGM

Shareholders who wish to present a motion to the Nomination Committee regarding the above-mentioned issues should contact the Chairman of the Nomination Committee, Aksel Azrac, at nomcom@lundin-energy.com not later than 22 December 2021.

Two licences awarded in the 25th licensing round

Two licences awarded in the 25th licensing round

Two licences awarded in the 25th licensing round

24 June 2021

Lundin Energy AB announces that its wholly owned subsidiary, Lundin Energy Norway AS (together Lundin Energy), has been awarded two exploration licence interests in the 25th licensing round, in Norway.

The award comprises two licences in the Southern Barents Sea, consolidating the Company’s position around the Wisting discovery (Lundin Energy 10 percent working interest). Both of the awarded licences will be operated by Equinor with Lundin Energy as partner.

The licence interests are detailed below.

LicenceBlocksWorking InterestArea
11337324/420%Barents Sea
11347323/2,3; 7324/1; 7423/12; 7424/10,11,12; 7425/1030%Barents Sea



25 Licence Round Award

Pricing of USD 2 billion senior notes offering

Pricing of USD 2 billion senior notes offering

Pricing of USD 2 billion senior notes offering

17 June 2021

Lundin Energy AB (the “Company”) is pleased to announce that it has priced its senior notes offering (the “Offering”) of USD 1 billion aggregate principal amount of 2.0 percent senior notes, due 2026 (the “2026 Notes”) at a price equal to 99.827 percent of the aggregate principal amount thereof and USD 1 billion aggregate principal amount of 3.1 percent senior notes, due 2031 at a price equal to 99.81 percent of the aggregate principal amount thereof, (the 2031 Notes and together with the 2026 Notes, the “Notes”). Interest will be payable semi-annually. The Offering is expected to close on or about 23 June 2021, subject to customary conditions precedent for similar transactions.

The Company intends to use the gross proceeds of the Offering to repay certain amounts outstanding under its corporate credit facility term loans, as well as to pay transaction fees and expenses.

In connection with the Offering, the initial purchasers may engage in stabilising transactions with a view to supporting the market price of the Notes at a level higher than that which might otherwise prevail. Any stabilization action must be conducted in accordance with all applicable laws and rules.

 

 

For further information, please contact:

Edward Westropp
VP Investor Relations
Tel: +41 22 595 10 14
edward.westropp@lundin-energy.com

Espen Hennie
Corporate Finance & Planning Director
Tel: +41 22 595 10 03
espen.hennie@lundin-energy.com

 

Cautionary Statements
This announcement is for information purposes only and is not intended for publication, release or distribution to, or use by, any person or entity in any jurisdiction or country where such publication, release, distribution or use would be contrary to law or regulation. In particular, this announcement does not constitute a prospectus or an offer or sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities in the United States (including its territories and possessions, any state of the United States and the District of Columbia) and this announcement may not be distributed except to (1) persons that are qualified institutional buyers (“QIBs”) as defined in Rule 144A under the U.S. Securities Act of 1933 (the “Securities Act”); or (2) to non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act (and, if investors are resident in (i) a member state of the European Economic Area (“EEA”), a qualified investor within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (the “Prospectus Regulation”) or (ii) the United Kingdom, a qualified investor within the meaning of the Prospectus Regulation as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the “EUWA”). Such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No public offering of securities will be made in the United States or in any other jurisdiction where such an offering is restricted or prohibited.

No securities are intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the EEA or the United Kingdom. For these purposes, a retail investor in (i) the EEA means a person who is one (or more) of: (a) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “MiFID II”); or (b) a customer within the meaning of Directive 2016/97/EU, where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (ii) the United Kingdom means a person who is one (or more) of: (a) a retail client as defined in point (8) of Article 2 of Regulation (EU) No. 2017/565 as it forms part of domestic law by virtue of the EUWA; or (b) a customer within the meaning of the Financial Services and Markets Act 2000, as amended to implement Directive (EU) 2016/97, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No. 600/2014 as it forms part of domestic law by virtue of the EUWA.

Manufacturer target market (MiFID II product governance / UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document has been prepared as not available to retail in the EEA. No United Kingdom PRIIPs key information document has been prepared as not available to retail in the United Kingdom.

This announcement may include projections and other “forward-looking” statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of Lundin Energy AB (“Lundin Energy”) about further events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections. Lundin Energy undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement.

Neither the content of Lundin Energy’s website nor any website accessible by hyperlinks on Lundin Energy’s website is incorporated in, or forms part of, this announcement.

The distribution of this announcement into certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

Lundin Energy launches offering of U.S. dollar-denominated senior notes

Lundin Energy launches offering of U.S. dollar-denominated senior notes

Lundin Energy launches offering of U.S. dollar-denominated senior notes

16 June 2021

Lundin Energy AB announces today that it has launched an offering of U.S. Dollar-denominated Rule 144A/Regulation S senior unsecured notes (the “Notes”). The interest rate, offering price and certain other terms will be determined at the time of pricing of the Notes, subject to market conditions

 

 

For further information, please contact:

Edward Westropp
VP Investor Relations
Tel: +41 22 595 10 14
edward.westropp@lundin-energy.com

Espen Hennie
Corporate Finance & Planning Director
Tel: +41 22 595 1003
espen.hennie@lundin-energy.com

 

Cautionary Statements
This announcement is for information purposes only and is not intended for publication, release or distribution to, or use by, any person or entity in any jurisdiction or country where such publication, release, distribution or use would be contrary to law or regulation. In particular, this announcement does not constitute a prospectus or an offer or sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities in the United States (including its territories and possessions, any state of the United States and the District of Columbia) and this announcement may not be distributed except to (1) persons that are qualified institutional buyers (“QIBs”) as defined in Rule 144A under the U.S. Securities Act of 1933 (the “Securities Act”); or (2) to non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act (and, if investors are resident in (i) a member state of the European Economic Area (“EEA”), a qualified investor within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (the “Prospectus Regulation”) or (ii) the United Kingdom, a qualified investor within the meaning of the Prospectus Regulation as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the “EUWA”). Such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No public offering of securities will be made in the United States or in any other jurisdiction where such an offering is restricted or prohibited.

No securities are intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the EEA or the United Kingdom. For these purposes, a retail investor in (i) the EEA means a person who is one (or more) of: (a) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “MiFID II”); or (b) a customer within the meaning of Directive 2016/97/EU, where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (ii) the United Kingdom means a person who is one (or more) of: (a) a retail client as defined in point (8) of Article 2 of Regulation (EU) No. 2017/565 as it forms part of domestic law by virtue of the EUWA; or (b) a customer within the meaning of the Financial Services and Markets Act 2000, as amended to implement Directive (EU) 2016/97, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No. 600/2014 as it forms part of domestic law by virtue of the EUWA.

Manufacturer target market (MiFID II product governance / UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document has been prepared as not available to retail in the EEA. No United Kingdom PRIIPs key information document has been prepared as not available to retail in the United Kingdom.

This announcement may include projections and other “forward-looking” statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of Lundin Energy AB (“Lundin Energy”) about further events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections. Lundin Energy undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement.

Neither the content of Lundin Energy’s website nor any website accessible by hyperlinks on Lundin Energy’s website is incorporated in, or forms part of, this announcement.

The distribution of this announcement into certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

Lundin Energy’s Johan Sverdrup barrels certified as carbon neutrally produced

Lundin Energy’s Johan Sverdrup barrels certified as carbon neutrally produced

Lundin Energy’s Johan Sverdrup barrels certified as carbon neutrally produced

16 June 2021

Lundin Energy AB (Lundin Energy) is pleased to announce that all future barrels of oil the Company sells from the Johan Sverdrup field will be certified as carbon neutrally produced under Intertek Group plc’s (Intertek) CarbonZeroTM standard. The field has been independently certified at 0.45 kg CO2e per boe1, approximately 40 times lower than the world average2. Lundin Energy has then taken the further step to neutralise net residual emissions using high quality, natural carbon capture projects.

Highlights

  • All future net production from Johan Sverdrup will be certified as carbon neutrally produced by Intertek under its CarbonZeroTM standard
  • Johan Sverdrup full life of field emissions are certified as one of the lowest in the world at 0.45 kg CO2e per boe by Intertek under its CarbonClearTM standard
  • Residual emissions from net production at Johan Sverdrup have been neutralised using high quality, natural carbon capture projects, certified by the Verified Carbon Standard (VCS)
  • The first carbon neutrally produced cargo from Johan Sverdrup has been sold to GS Caltex, Korea
  • From 2025, all barrels produced by Lundin Energy will be carbon neutral in their production

The Johan Sverdrup field is the second in Norway to have its emissions independently certified by Intertek, under its CarbonClearTM standard. The field is certified as one of the world’s lowest carbon emitting offshore oil and gas fields at 0.45 kg CO2e per barrel of oil equivalent (boe) for full life of field emissions1, approximately 40 times lower than the world average2. In order to supply a fully carbon neutrally produced barrel, the residual emissions have been neutralised through high quality, natural carbon capture projects, certified by the Verified Carbon Standard (VCS). As a result, there will be no net emissions released during the future production of Lundin Energy’s Johan Sverdrup net barrels, which amounts to approximately 100 thousand barrels of oil per day (Mbopd) today and increasing to approximately 150 Mbopd when Phase 2 of the field comes on stream in the fourth quarter of 2022.

The first trade of certified carbon neutrally produced oil from Johan Sverdrup has already been completed with GS Caltex in Korea. The two million barrel cargo will load in July 2021 to be delivered to Korea and was sold as carbon neutrally produced at market price.

Nick Walker, President and CEO of Lundin Energy, commented:
“Since we sold our first cargo of certified, carbon neutrally produced oil from Edvard Grieg earlier this year, we have seen significant interest in the market for this clearly differentiated product. With the certification of our Johan Sverdrup barrels as CarbonZeroTM, we now have a significant volume of crude being traded as carbon neutrally produced, which I believe will drive significant value for Lundin Energy. As the energy transition continues to accelerate, providing certified, zero emission produced barrels to our customers ensures that they can continue the decarbonisation pathway, delivering a differentiated product to their end users. From 2025, every barrel delivered by Lundin Energy, will be carbon neutrally produced.”

Saehong Hur, President and CEO of GS Caltex Corporation, commented:
“We are very proud to purchase the first Johan Sverdrup cargo certified as carbon neutrally produced. At GS Caltex, we are striving to reduce our carbon footprint as part of our commitment to good environmental, social and governance practices. In line with our efforts to expand environmentally-friendly activities, the purchase of Lundin Energy’s certified carbon neutrally produced crude oil is another meaningful step on our path toward a more sustainable and green economy. GS Caltex would like to work together with Lundin Energy further in the future.”

1) Includes emissions from exploration, development and scope 1, 2 and scope 3 supply chain emissions from production.
2) According to the latest data available from the International Association of Oil and Gas Producers.

 

 

Increased production capacity for Johan Sverdrup full field

Increased production capacity for Johan Sverdrup full field

Increased production capacity for Johan Sverdrup full field

15 June 2021

Lundin Energy AB is pleased to note that the operator of Johan Sverdrup, Equinor ASA, now anticipates full field gross production capacity of 755 thousand barrels of oil per day (Mbopd) once Phase 2 is on stream and also announced an improvement in full field economics.

Johan Sverdrup continues to exceed expectations:

  • Full field production capacity is increased to 755 Mbopd from 720 Mbopd, once Phase 2 of the project is on stream.
  • Further good progress has been made on the execution of the Phase 2 project with the jacket installed offshore and the second processing platform fully assembled in Norway, with completion activities ongoing ahead of offshore installation in second quarter 2022.
  • Phase 2 remains on schedule for first oil in the fourth quarter 2022 and costs are unchanged from the PDO estimate of 41 Bn NOK gross.
  • The full field breakeven oil price for Johan Sverdrup has been reduced to USD 15 per boe from less than USD 20 per boe.

 

 

Lundin Energy announces that a series of investment grade fixed income investor calls will be arranged.

Lundin Energy announces that a series of investment grade fixed income investor calls will be arranged.

Lundin Energy announces that a series of investment grade fixed income investor calls will be arranged

14 June 2021

Lundin Energy AB announces today that a series of investment grade fixed income investor calls will be arranged. A benchmark U.S. Dollar denominated Rule 144A/Regulation S senior unsecured notes offering may follow, subject to market conditions.

 

 

For further information, please contact:

Edward Westropp
VP Investor Relations
Tel: +41 22 595 10 14
edward.westropp@lundin-energy.com

Espen Hennie
Corporate Finance & Planning Director
Tel: +41 22 595 1003
espen.hennie@lundin-energy.com

 

Cautionary Statements
This announcement is for information purposes only and is not intended for publication, release or distribution to, or use by, any person or entity in any jurisdiction or country where such publication, release, distribution or use would be contrary to law or regulation. In particular, this announcement does not constitute a prospectus or an offer or sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities in the United States (including its territories and possessions, any state of the United States and the District of Columbia) and this announcement may not be distributed except to (1) persons that are qualified institutional buyers (“QIBs”) as defined in Rule 144A under the U.S. Securities Act of 1933 (the “Securities Act”); or (2) to non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act (and, if investors are resident in (i) a member state of the European Economic Area (“EEA”), a qualified investor within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (the “Prospectus Regulation”) or (ii) the United Kingdom, a qualified investor within the meaning of the Prospectus Regulation as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the “EUWA”). Such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No public offering of securities will be made in the United States or in any other jurisdiction where such an offering is restricted or prohibited.

No securities are intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the EEA or the United Kingdom. For these purposes, a retail investor in (i) the EEA means a person who is one (or more) of: (a) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “MiFID II”); or (b) a customer within the meaning of Directive 2016/97/EU, where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (ii) the United Kingdom means a person who is one (or more) of: (a) a retail client as defined in point (8) of Article 2 of Regulation (EU) No. 2017/565 as it forms part of domestic law by virtue of the EUWA; or (b) a customer within the meaning of the Financial Services and Markets Act 2000, as amended to implement Directive (EU) 2016/97, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No. 600/2014 as it forms part of domestic law by virtue of the EUWA.

Manufacturer target market (MiFID II product governance /UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document has been prepared as not available to retail in the EEA. No United Kingdom PRIIPs key information document has been prepared as not available to retail in the United Kingdom.

This announcement may include projections and other “forward-looking” statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of Lundin Energy AB (“Lundin Energy”) about further events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections. Lundin Energy undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement.

Neither the content of Lundin Energy’s website nor any website accessible by hyperlinks on Lundin Energy’s website is incorporated in, or forms part of, this announcement.

The distribution of this announcement into certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.