Posts

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

 

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.

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

Icon

3 month report 2020
30.04.2020, 0.00 KB

CEO Letter to Shareholders

CEO letter to shareholders

CEO Letter to Shareholders

23 March 2020

Alex Schneiter, President and CEO of Lundin Petroleum AB (Lundin Petroleum) has written an open letter to shareholders in regard to current market conditions, measures taken to mitigate any impact from the current Covid-19 pandemic on operations and the resilience of the Company’s strategy and business model to low commodity prices.

A full copy of the letter can be accessed through this link to the Company’s website:
https://www.lundin-energy.com/investors/letter-to-shareholders/

Key excerpts:

The Company remains resilient against low oil prices:

  • Average breakeven oil price to achieve free cash flow neutrality before debt repayment and dividends for the next seven years is c. USD 17 per barrel of oil equivalent¹ (boe). This is a result of our world class producing fields having one of the lowest Operating Costs in our industry (long term guidance of USD 3.2 to 4.2 per boe). Our remaining capital spend to produce out our proven plus probable reserves is less than USD 3 per boe.

Swift action taken to mitigate any potential impact from the Covid-19 pandemic to production operations:

  • We are part of a coordinated industry response, that focusses on minimising the risk of coronavirus infected personnel travelling offshore, and, in the case of a suspected infection offshore, to isolate and transport to shore as soon as possible. The Norwegian authorities have introduced certain exceptional measures to help deal with the situation.
  • To minimise risk to our production operations, we are down-manning offshore personnel in order to maintain a minimum level of activity allowing us to produce, maintain and plan the anticipated and most important activities on the platforms.
  • Edvard Grieg personnel will be kept at the minimum level required, whilst preserving the infill drilling programme. Installation of the Solveig/Rolvsnes subsea equipment has commenced and currently the first oil date in 2021 is being maintained. Should we see slippage in the Edvard Grieg Area projects it will not impact 2021 production guidance as we have excess well capacity on the Edvard Grieg field. Similar actions are being taken at Alvheim and Johan Sverdrup, preserving key activities and reorganising the phasing of the activities.

Clear opportunities identified to support near term cash flow and liquidity position:

  • Cost reductions of approximately MUSD 170 (including G&A) are already being implemented for 2020. Other measures to further strengthen our liquidity position are being identified such as deferring further non-committed projects.
  • Low cash operating costs means our production generates free cash flow at low oil prices and together with our existing BUSD 5.0 reserves based lending facility (RBL), provides the Company with good liquidity to fund our committed projects. The RBL is currently drawn at approximately BUSD 3.8
  • The Board of Directors announced on 23 March 2020 the decision to amend its dividend proposal from USD 1.80 to USD 1.0 per share, in order to maintain financial prudence and provide us with further liquidity flexibility in this challenging market. This will further strengthen our balance sheet and give us more flexibility in how we deploy our capital.

Alex Schneiter, President and Chief Executive Officer of Lundin Petroleum, said:

“Whilst we remain vigilant and prepared for many different eventualities, today our strategy remains broadly unchanged and our firm intention is to deliver on our 2020 work programme as presented at our Capital Market Day in January 2020 whilst deferring non-committed projects. We will, along the way, continue to apply a very strict capital discipline on the business, to preserve our liquidity position and further reduce and re-phase our capital spend without disrupting our business plans. Although the dividend proposal has been amended, our ability to distribute cash to our shareholders in a sustainable way will continue to be based upon our Free Cash Flow generation, debt gearing levels and the medium to long-term macroeconmic outlook. Overall, I am very pleased with how our organisation has responded to these challenging times and our team is focused on swiftly adapting to this changing environment.”

¹ Based on 2P profile

 

Amendment to proposed 2019 dividend and further update on AGM planning

Amendment to proposed 2019 dividend and further update on AGM planning

Amendment to proposed 2019 dividend and further update on AGM planning

23 March 2020

The Board of Directors of Lundin Petroleum AB (Lundin Petroleum or the Company) announces that in order to maintain financial prudence and further liquidity flexibility in the light of current market conditions, it is amending its dividend proposal to the 2020 Annual General Meeting (AGM) down to USD 1.0 per share (corresponding to MUSD 284) from USD 1.80 per share, as set out in the notice of the AGM published on 27 February 2020. The Company would also like to make shareholders aware that due to the deteriorating situation in regards to the Covid-19 viral pandemic, no member of the Board of Directors and no member of group management will be attending the AGM in person, but members of the Board of Directors and group management will instead attend via live video link.

Amended 2019 dividend proposal
Lundin Petroleum operates with one of the lowest cost bases in the offshore industry and has a free cash flow breakeven on average over the next seven years of around USD 17 per barrel of oil equivalent (boe), which gives the Company certain resilience to commodity price cycles. However, in the light of the recent fall in the oil price, compounded by a significant deterioration of the macro economic environment, the Board of Directors has taken the prudent measure, in order to provide further liquidity flexibility, of amending its dividend proposal to USD 1.0 per share (corresponding to MUSD 284), from USD 1.80 per share (corresponding to MUSD 511), which is to be voted on by shareholders at the AGM on 31 March 2020. The full revised dividend proposal together with a statement from the Board of Directors is available on the Lundin Petroleum website www.lundin-petroleum.com.

Details in regards to the updated proposed 2019 dividend to be paid in four equal instalments in 2020 and 2021
The Board of Directors will propose to the 2020 Annual General Meeting a dividend for 2019 of USD 1.0 per share, corresponding to MUSD 284 (rounded off), to be paid in quarterly instalments of USD 0.25 per share, corresponding to MUSD 71 (rounded off). Before payment, each quarterly dividend of USD 0.25 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.

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

Expected Ex-dividend dateExpected Record dateExpected payment date
1 April 20202 April 20207 April 2020
2 July 20203 July 20208 July 2020
1 October 20202 October 20207 October 2020
30 December 20204 January 20218 January 2021

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 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.

Update on precautionary measures at the AGM
The AGM will take place on 31 March 2020 in “Vinterträdgården” at Grand Hôtel, Södra Blasieholmshamnen 8, in Stockholm, commencing at 13.00.

Given the deteriorating situation in regards to the Covid-19 viral pandemic and restrictions in relation to it, the Company has decided to take the precautionary measure of restricting attendance in person to a minimum and instead, members of the Board of Directors and group management will be present via live video link. All other precautionary measures as announced on 13 March 2020 will remain in place, namely:

  •  The AGM agenda will be addressed by the Chairman of the AGM without any specific presentations, and it is proposed that there be no speech by the Chief Executive Officer
  • To enable shareholders to vote whilst not being physically present at the AGM, the registrar Computershare is offering a service to any shareholder registered to attend the AGM and holding no more than 100,000 shares to appoint Computershare to vote on their behalf, the proxy is available on request by contacting Computershare at telephone +46-8-518 01 554 or by e-mail info@computershare.se – the Company encourages shareholders to exercise their voting rights accordingly
  • Any shareholders displaying symptoms of illness or being part of a risk group are specifically requested not to attend the AGM and to exercise their voting power through proxy There will be no ancillary showcases or informal engagement with representatives of Lundin Petroleum
  • There will be no food or beverages served before, during or after the AGM
  • The meeting will be held entirely in Swedish and no translation services will be provided
  • Attendees, who nonetheless wish to attend in person, may be subject to health screening at the entrance and will be asked to spread out in the room and avoid close contact with other attendees
  • Under all circumstances, only registered shareholders (including proxies and advisers) that have given notice of attendance to the Company in due order will be allowed to enter the meeting, meaning that the AGM will resolve that no external guests, including media and other stakeholders will be allowed to attend

Lundin Petroleum publishes the Annual Report and the Sustainability Report for 2019

Annual Report 2019

Lundin Petroleum publishes the Annual Report and the Sustainability Report for 2019

4 March 2020

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce the publication of the Annual Report and the Sustainability Report for 2019.

The reports are available to read and to download on Lundin Petroleum’s website, www.lundin-petroleum.com, and on the Lundin Petroleum IR App. Shareholders who wish to receive a printed copy of the Annual Report 2019 or the Sustainability Report 2019 can request one on Lundin Petroleum’s website or by telephone on +46 8 440 54 50.

 

Icon

Annual report 2019
04.03.2020, 3.37 MB

Icon

Sustainability report 2019
16.06.2020, 6.05 MB

Capital Markets Day 2020

CMD-2020

Capital Markets Day 2020

31 January 2020

2020 Capital Markets Day information
Lundin Petroleum will be hosting its 2020 Capital Markets Day on 31 January 2020 at 11.00 CET (10.00 GMT) at the London Stock Exchange. The Capital Markets Day will include presentations by the Company’s management team on its fourth quarter 2019 financial results, the business strategy, the 2020 budgeted development campaign and its exploration and appraisal programme.

 

Details for the live webcast:
Sweden +46 8 56642651
UK +44 3333000804
United States +1 6319131422
Norway +47 23500243

Access Pin : 58812582

Webcast link : https://lundinpetroleum.videosync.fi/2020-01-31-q4_cmd

Icon

2020 Capital Markets Day
31.01.2020, 24.96 MB

Downloads

Latest corporate presentation

Operations and financial update – Q2 2020

S&P credit rating report

6 month report 2020

Lundin Energy concession summary

Lundin Energy AB’s Nomination Committee