Alex Schneiter Bloomberg TV interview

Alex Schneiter Bloomberg TV interview

Alex Schneiter Bloomberg TV interview

29 July 2020

Listen to Bloomberg TV interview with Alex Schneiter, President and CEO, delivering the second quarterly results and sharing his thoughts on Lundin Energy’s future developments.

Lundin Energy audiocast – Q2 report 2020 presentation

Lundin Petroleum audiocast - Q2 report 2020 presentation

Lundin Energy audiocast – Q2 report 2020 presentation

29 July 2020

Listen to Alex Schneiter, President and CEO, and Teitur Poulsen, CFO, commenting on the report at a live audiocast, to be held at 09:00 CEST this morning (29 July 2020).

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

UK/International: +44 207 192 8338
Sweden: +46 8 566 184 67
Norway: +47 21 56 30 15
USA: +1 646 741 3167
Access code/pin : 4291718

Link : https://edge.media-server.com/mmc/p/pa874z3y

 

Report for the six months ended 30 June 2020

Report for the six months ended 30 June 2020

Report for the six months ended 30 June 2020

29 July 2020

·Despite very low oil prices, free cash flow was positive from the oil and gas operations in second quarter and over MUSD 380 free cash flow for the six months period
·Record quarterly production of 162.9 Mboepd in the second quarter
·Accelerated ramp up and increased phase 1 plateau production at Johan Sverdrup; phase 1 capacity of 470 Mbopd to be tested for further upside, during second half of this year
·Significant increase in liquidity during the period from cost reductions and phasing, tax incentives and additional debt facilities
·Continued out performance at Edvard Grieg; increase in reserves and extension of plateau production anticipated
·Eight potential projects to be accelerated due to recent Norwegian tax incentives, targeting over 120 MMboe of net resources
·Awarded credit rating of ‘BBB-‘ with stable outlook by S&P Global, confirming strength of liquidity and credit position

 

Financial summary1 Jan 2020-
30 Jun 2020
6 months
1 Apr 2020-
30 Jun 2020
3 months
1 Jan 2019-
30 Jun 2019
6 months
1 Apr 2019-
30 Jun 2019
3 months
1 Jan 2019-
31 Dec 2019
12 months
Production in Mboepd157.7162.977.576.193.3
Revenue and other income in MUSD1,097.7402.5984.0499.92,948.7
CFFO in MUSD
Per share in USD
898.1
3.16
259.8
0.91
754.5
2.23
408.7
1.21
1,378.2
4.36
EBITDA in MUSD1
Per share in USD1
916.2
3.23
335.1
1.18
811.6
2.40
411.9
1.22
1,918.4
6.07
Free cash flow in MUSD2
Per share in USD2
381.5
1.34
-25.2
-0.09
167.4
0.49
71.6
0.21
1,271.7
4.03
Net result in MUSD
Per share in USD
-131.8
-0.46
178.8
0.63
149.7
0.44
96.2
0.28
824.9
2.61
Adjusted Net result in MUSD
Per share in USD
117.3
0.41
51.3
0.18
128.4
0.38
69.5
0.21
252.7
0.80
Net debt in MUSD3,796.13,796.1 3,359.33,359.34,006.7

1Excludes the reported after tax accounting gain of MUSD 756.7 in 2019 on the divestment of a 2.6 percent working interest in the Johan Sverdrup project.
2Includes renewable energy business. Free cash flow for second quarter 2020 excluding renewable energy business was MUSD 19.5 positive.


Comments from Alex Schneiter, President and CEO of Lundin Energy:

“The resilience Lundin Energy has shown in the face of the sharpest downturn in the history of the oil industry is a testament to the quality of the asset base, flexibility of our financial resources and operational excellence of the business and our people; this has been further demonstrated by the award of a ‘BBB-‘ credit rating. We generated over MUSD 380 of free cash flow in the period and delivered a positive free cash flow result from the oil and gas operations for the second quarter. This all in a period where we encountered some of the lowest realised pricing we have witnessed, both when taking into account the historic negative dated Brent differential and physical discount; a situation which has now normalised and in fact we are witnessing premiums for our barrels in the market again.

“The risk posed by coronavirus presented a unique challenge to the offshore industry and following swift and effective action, any potential threat was mitigated and all of our staff have come through the period safely and we saw no disruptions to production. As we enter the second half of the year, all offshore facilities have returned to normal manning levels and the projects are progressing on plan.

“Although faced with an uncertain market backdrop, operationally Lundin Energy performed exceptionally well. Johan Sverdrup reached its increased plateau rate of 470 Mbopd in April 2020 and since then a further new production well has been completed. The capacity of the facilities will be tested for further upside in the second half of the year. At Edvard Grieg, reservoir performance continues to exceed expectations. The reservoir model is currently being updated along with the recently completed 4D seismic survey and we already see clear potential for a further increase in reserves and an extension of the plateau production.

“The Norwegian government also played an active role during the period; establishing a tax incentive package which as well as improving near term liquidity also significantly improves future project economics assuming plan of development(s) are submitted prior to end of 2022. The Company has identified up to eight potential new projects targeting over 120 MMboe of net resources, which could benefit from these tax incentives. We will be aiming to accelerate appraisal activities and field development studies for all of these potential projects, with the objective of maturing them to sanction prior to the deadline at the end of 2022.

“As well as maintaining a very low operating cost base during the period of USD 2.78 per boe, we were also able to deliver a carbon emission per barrel produced of 2.8 Kg CO2, which is 50 percent lower than in 2019 and significantly below our emission target in 2020 of 4 kg CO2 per barrel produced. Our carbon footprint will be further reduced by the end of 2022 when the Edvard Grieg field will be fully electrified using mostly onshore renewable electricity. By then we will be targeting less than 2 Kg CO2 per barrel produced and be close to our objective of reaching carbon neutrality from our operations.

“The second half of the year will see us resuming exploration activities in the fourth quarter, as well as continuing to focus on maintaining strict capital discipline and opportunistically looking to take advantage of this low point in the cycle to complement our portfolio. It is times like these which show the true mettle of a business and I would like to take this opportunity to thank all staff for their hard work and determination, as we not only successfully traded through this difficult period but are indeed in a stronger and fitter position. As the founder of the Lundin Group, Adolf Lundin, used to tell me, “when the going gets tough, the tough get going!”

Audiocast Presentation
Listen to Alex Schneiter, President and CEO, and Teitur Poulsen, CFO, commenting on the report at a live audiocast, to be held at 09:00 CEST this morning (29 July 2020). Follow the presentation live on www.lundin-energy.com or dial in using the following telephone numbers:

UK/International: ….+44 207 192 8338
Sweden: ………………..+46 8 566 184 67
Norway: ………………..+47 21 56 30 15
USA: ……………………..+1 646 741 3167
Access code/pin : 4291718

Link : https://edge.media-server.com/mmc/p/pa874z3y

 

Update on second quarter 2020 financial results and audiocast details for presentation on 29 July 2020

Update on second quarter 2020 financial results and audiocast details for presentation on 29 July 2020

Update on second quarter 2020 financial results and audiocast details for presentation on 29 July 2020

15 July 2020

Lundin Energy AB (Lundin Energy) will publish its financial report for the second quarter 2020 on Wednesday, 29 July 2020. For the second quarter 2020, Lundin Energy will expense pre-tax exploration costs of approximately MUSD 19 and recognise a net foreign exchange gain of approximately MUSD 131.

Exploration costs
It is the Company’s policy to capitalize costs associated with its exploration activities and when it is determined that a commercial discovery has not been achieved, the associated exploration costs are charged to the income statement. For the second quarter of 2020, Lundin Energy will incur a pre-tax charge to the income statement of MUSD 19 relating to exploration costs. These exploration costs will be offset by a tax credit of approximately MUSD 15. The costs are mainly related to relinquished licenses, including the part relinquishment of Area 5 of PL338 containing the Apollo discovery.

Foreign exchange
Lundin Energy will recognise a net foreign exchange gain of approximately MUSD 131 for the second quarter of 2020. The Norwegian Krone strengthened against the US Dollar by approximately 7 percent and the Euro strengthened against the US Dollar by approximately 2 percent during the second quarter of 2020. 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 2020, Lundin Energy was overlifted by 9.4 Mboepd.

Revenue from the 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 2020, revenue from the sale of crude oil from third parties amounted to MUSD 8 offset by the purchase of crude oil from third parties of MUSD 8.

Release of report and audiocast on 29 July 2020
Lundin Energy’s financial report for the second quarter 2020 will be published on Wednesday 29 July 2020 at 07:30 CEST, followed by a live audiocast at 09:00 CEST where Alex Schneiter, 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:

UK/International:    +44 207 192 8338
Sweden:     +46 8 566 184 67
Norway:     +47 21 56 30 15
USA:     +1 646 741 3167
Access code/pin :  4291718

Link : https://edge.media-server.com/mmc/p/pa874z3y

 

The second quarterly instalment of the dividend of USD 0.25 per share will amount to SEK 2.33 per share

The second quarterly instalment of the dividend of USD 0.25 per share will amount to SEK 2.33 per share

The second quarterly instalment of the dividend of USD 0.25 per share will amount to SEK 2.33 per share

29 June 2020

Lundin Energy AB (Lundin Energy) announces that the second quarterly instalment of the dividend of USD 0.25 per share will amount to SEK 2.33 per share, with a total amount of MSEK 662, corresponding to approximately MUSD 71.

Information about the second quarterly instalment of the dividend:

Amount per share
(SEK)
Total dividend amount
(MSEK)
Ex-dividend dateRecord dateExpected payment date
2.336622 July 20203 July 20208 July 2020

The Annual General Meeting of Lundin Energy held on 31 March 2020 resolved on a dividend for 2019 of USD 1.00 per share, to be paid in quarterly instalments of USD 0.25 per share.

According to the dividend resolution, before payment, each quarterly dividend of USD 0.25 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 9.3104.

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

Lundin Energy AB’s Nomination Committee

Lundin Energy AB's Nomination Committee

Lundin Energy AB’s Nomination Committee

16 June 2020

Lundin Energy AB (Lundin Energy) is pleased to announce the composition of the Nomination Committee for the 2021 Annual General Meeting (AGM) to be held on 30 March 2021 in Stockholm.

The Nomination Committee has been formed with the following members:

• Filippa Gerstädt (Nordea Funds)
• 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 2021 AGM regarding:

• Election of the Chairman of the 2021 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 2022 AGM, if any amendments are proposed to the Process for the 2021 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 21 December 2020.

Updated 2020 production guidance to reflect the Norwegian Government production restrictions and increased long-term production guidance

Updated 2020 production guidance to reflect the Norwegian Government production restrictions and increased long-term production guidance

Updated 2020 production guidance to reflect the Norwegian Government production restrictions and increased long-term production guidance

18 May 2020

Lundin Energy AB (Lundin Energy or the Company) announces that following the decision made by the Norwegian Government to implement production restriction measures on the Norwegian Continental shelf, the Company’s updated production guidance for the full year 2020, will be targeting 157 thousand barrels of oil equivalent per day (Mboepd). This is at the top end of the original guidance range for 2020 of 145 – 165 Mboepd, which was subsequently upgraded, to 160 – 170 Mboepd, prior to the production cuts announced by the Norwegian Government.

Updated guidance:

 

UpdatedPrevious
2020 ProductionTargeting 157 Mboepd160 – 170 Mboepd
2020 Operating CostUSD 2.80 per boeUSD 2.80 per boe
Long term Production170 – 180 Mboepd160 – 170 Mboepd

The production restriction measures being introduced will impact production output from the Company’s assets from June through December 2020, with unrestricted production levels resuming at the beginning of 2021. In addition, to take advantage of excess production capacity, the planned maintenance shutdown on Edvard Grieg, that was previously deferred from 2020 to 2021, will now be expedited to take place in the third quarter of 2020.

Due to the recently announced increased production capacity at Johan Sverdrup, the Company is increasing its long term production guidance to 170 – 180 Mboepd from 2021, from the previous guidance of 160 – 170 Mboepd.

Operating cost guidance for 2020 remains unchanged at USD 2.80 per boe, which highlights the high operating efficiency of the portfolio.

Lundin Energy donation to help people in need during the outbreak of Covid-19

Lundin Energy donation to help people in need during the outbreak of Covid-19

Lundin Energy donation to help people in need during the outbreak
of Covid-19

8 May 2020

Lundin Energy was keen to contribute to local efforts in Geneva to support those suffering during the coronavirus outbreak. The Company has therefore donated CHF 150,000 each to both The Red Cross Geneva and Serve the City Geneva.

Alex Schneiter, President and CEO comments:

“We are all facing unprecedented challenges at the moment due to the outbreak of the coronavirus. Whilst the impact is significant on all of us, both as individuals and companies, there is no doubt that those who are suffering the most are the vulnerable and elderly. I am therefore very proud, on behalf of Lundin Energy, to be able to donate a total of CHF 300,000 to two local charities who are doing amazing work. The ‘Red Cross Geneva’ and ‘Serve the City Geneva’ are at the forefront of efforts to help our most vulnerable residents and we all praise their commitment to this cause and thank them for their efforts.”

Lundin Energy salutes those working on the frontline to help those at most risk during this difficult time and we would encourage all those who can to support these or similar organisations to any extent you can.

Geneva Red Cross

https://www.croix-rouge-ge.ch/

Benjamin Lachat, Geneva Red Cross, comments:
“Thanks to the support received from various donors, the Geneva Red Cross is able to continue its support of  vulnerable people in Geneva in these most extraordinary times. As you know, many people at-risk found themselves suddenly isolated, unable to carry on normal daily activities, such as grocery shopping. Others completely lost all their social connections. With the aim to alleviate the suffering of isolated people and support them in their daily life, the Geneva Red Cross quickly mobilized its large network of volunteers and professionals. Since mid-March, every person who contacted the Red Cross has received the needed support, be it regular phone calls, delivery of grocery or medicines, disposal of domestic wastes, help in taking care of the bills, etc. We are proud of our contribution in this humanitarian effort and invite you to discover the words (in French) of the volunteers and beneficiaries of the Geneva Red Cross action on their website:”

https://www.croix-rouge-ge.ch/des-nouvelles-de-nos-beneficiaires-et-benevoles

Serve the City Geneva

https://www.servethecitygeneva.ch/

Gary Vannatter, Serve the City Geneva, comments:
“Serve the City Geneva is now in its 11th year of helping the marginalised people of the community. For the past couple of months, we have been greatly affected by the current need for maintaining what is called  “social distancing”, but we would prefer to maintain a physical distance, for everyone’s safety, but keep up a social relationship with those we serve. We have had to rethink our methods of support to the organisations and people that we serve. We have teams making hundreds of sandwiches each week, delivering them to soup kitchens who set up take-away meals for hundreds of those in need. And others looking after caregivers. We are certainly trying to be part of increasing the KQ of the community. What is KQ? It is the Kindness Quotient in our city! Serve the City is now encouraging our volunteers to develop ways of offering acts of kindness to family, friends, neighbours and the needy of the community, within the constraints of safety and health regulations. We will continue to also mobilise volunteers to show kindness in practical ways”

Lundin Energy audiocast – Q1 report 2020 presentation

Lundin Petroleum audiocast - Q3 report 2019 presentation

Lundin Energy audiocast – Q1 report 2020 presentation

30 April 2020

Listen to Alex Schneiter, President and CEO, and Teitur Poulsen, CFO, commenting on the report at a live audiocast, held on Thursday 30 April at 09:00 CEST.

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 : 58812582

 

Link : https://lundinenergy.videosync.fi/2020-04-30-q1

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3 month report 2020
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