Proposed 2020 dividend of USD 1.80 per share representing an 80 percent increase on 2019 dividend

Proposed 2020 dividend of USD 1.80 per share representing an 80 percent increase on 2019 dividend

Proposed 2020 dividend of USD 1.80 per share representing an 80 percent increase on 2019 dividend

27 January 2021

The Board of Directors of Lundin Energy AB (Lundin Energy) proposes a 2020 dividend of USD 1.80 per share, corresponding to MUSD 512.

The Board of Directors will propose to the 2021 Annual General Meeting, in accordance with the dividend policy as announced on 30 January 2019, a 2020 dividend of USD 1.80 per share, corresponding to MUSD 512 (rounded off), noting the reduced 2019 dividend of USD 1.00 per share, that was approved, to maintain financial prudence and further liquidity flexibility in light of the then prevailing market conditions. The proposed 2020 dividend is to be paid in quarterly instalments of USD 0.45 per share, corresponding to MUSD 128 (rounded off). Before payment, each quarterly dividend of USD 0.45 per share shall be converted into a SEK amount, and paid out in SEK, 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). 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.

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 plan is to maintain or increase 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.

Information about the proposed dividend to be paid out as follows:

Expected ex-dividend dateExpected record dateExpected payment date
31 March 20211 April 20218 April 2021
1 July 20212 July 20217 July 2021
1 October 20214 October 20217 October 2021
4 January 20225 January 202211 January 2022

In order to comply with Swedish company law, a maximum total SEK amount shall be pre-determined to ensure that the dividend distributed does not exceed the available distributable reserves of the Company and such maximum amount for the dividend has been set to a cap of MSEK 7,636 (i.e. MSEK 1,909 per quarter). If the total dividend would exceed the cap of MSEK 7,636, the dividend will be automatically adjusted downwards so that the total dividend corresponds to the cap of MSEK 7,636.