Lundin Energy’s objective is to create attractive shareholder returns by investing through the business cycle with capital investments allocated to exploration, development and production assets. The Company’s expectation is to create shareholder returns both through share price appreciation and by distributing a sustainable yearly dividend – paid in quarterly instalments and denominated in USD – with the plan of maintaining or increasing the dividend over time in line with the Company’s financial performance and being sustainable below an oil price of USD 50 per barrel. The dividend shall be sustainable in the context of allowing the Company to continue to pursue its organic growth strategy and to develop its contingent resources whilst maintaining a conservative gearing ratio and retaining an appropriate liquidity position within its available credit lines.
The 2020 Annual General Meeting of Lundin Energy held on 31 March 2020, resolved to pay a cash dividend in the amount of USD 1.00 per share, corresponding to USD 284 million (rounded off), to be paid in quarterly instalments of USD 0.25 per share, corresponding to USD 71 million (rounded off). 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/share). The final USD equivalent amount received by the shareholders may therefore slightly differ depending on what the USD to SEK exchange rate is on the date of the dividend payment. The SEK amount per share to be distributed each quarter will be announced in a press release four business days prior to each record date.
Relevant dates for the proposed dividend:
|Ex-dividend date||Record date||Expected payment date|
|1 April 2020||2 April 2020||7 April 2020|
|2 July 2020||3 July 2020||8 July 2020|
|1 October 2020||2 October 2020||7 October 2020|
|30 December 2020||4 January 2021||8 January 2021|
In order to comply with Swedish company law, a maximum total SEK amount shall be pre-determined to ensure that the annual dividend distributed does not exceed the available distributable reserves of the Company and such maximum amount for the proposed dividend has been set to a cap of SEK 5.188 billion (i.e., SEK 1.297 billion per quarter). If the total dividend would exceed the cap of SEK 5.188 billion, the dividend will be automatically adjusted downwards so that the total dividend corresponds to the cap of SEK 5.188 billion.
If Riksbanken does not publish the USD to SEK exchange rate on the fourth business day prior to the relevant record date, the conversion into SEK will be based on the USD to SEK exchange rate published by Riksbanken immediately before such business day.
Key dividend indicators
|Dividend paid out (USD/share)||1.11||0.45||1.21|
|Dividend paid out (MUSD)||355.6||153.1||410|
|Dividend paid out (USD/share)||0.37||0.25||0.25||–|
|Dividend paid out (MUSD)||105.1||71||71||–|