Report for the three months ended 31 March 2022

Report for the three months ended 31 March 2022

Report for the three months ended 31 March 2022

27 April 2022

·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 summary11 Jan 2022-
31 Mar 2022
3 months
1 Jan 2021-
31 Mar 2021
3 months
1 Jan 2021-
31 Dec 2021
12 months
Production in Mboepd191.4182.9190.3
Revenue and other income in MUSD1,976.91,111.95,484.7
CFFO in MUSD
Per share in USD
1,009.6
3.55
750.2
2.64
3,058.0
10.75
EBITDAX in MUSD
Per share in USD
1,888.5
6.64
1,018.4
3.58
4,822.8
16.96
Free cash flow in MUSD
Per share in USD
822.3
2.89
526.2
1.85
1,645.5
5.79
Net result in MUSD
Per share in USD
468.5
1.65
68.9
0.24
493.8
1.74
Adjusted Net result in MUSD
Per share in USD
395.4
1.39
149.8
0.53
795.7
2.80
Net debt in MUSD2,062.23,464.02,747.9
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


Comments from Nick Walker, President and CEO of Lundin Energy:

“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 Norway pure play E&P company of scale, with production growth, a complementary portfolio of industry leading low cost and low carbon emissions assets, delivering sustainable and growing dividends into the next decade.

“For the Lundin Energy shareholders, the transaction delivers a significant up-front cash consideration, the opportunity to be a shareholder in the leading European E&P company and a retained interest in an exciting new renewables business that is positioned for growth, which will be led by a tremendous team with the Lundin entrepreneurial spirit. We anticipate that the transaction will be completed on 30 June 2022.

“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 Edvard Grieg Area, we see excellent reservoir performance from the recently completed projects and we’re progressing a series of new projects towards sanction in this prolific area, which will further extend the production plateau.

“Our Decarbonisation Plan is making great progress, with the recent completion of our first wind farm in Finland and with everything now on track for the electrification of Edvard Grieg by the end of 2022.

“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.”

Audiocast presentation
Listen to Nick Walker, President and CEO and Teitur Poulsen, CFO, commenting on the report at a live audiocast held today, at 14:00 CEST. Follow the presentation on www.lundin-energy.com or dial in using the following telephone numbers:

UK/International: +44 3333000804
Sweden: +46 856642651
Norway:+47 23500243
USA:+1 6319131422
Access Pin :62505911
Webcast link:https://edge.media-server.com/mmc/p/y8c5e7kc

 


 

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