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Commercial handover of the MLK wind farm in Finland

TFinland's third largest wind farm completed – OX2 hands over Metsälamminkangas wind farm to Lundin Energy and Sval Energi

Commercial handover of the MLK wind farm in Finland

04 April 2022

Lundin Energy AB (”Lundin Energy” or “the Company”) is pleased to announce the completion and commercial handover of the Metsälamminkangas (”MLK”) wind farm, the third largest in Finland to Lundin Energy and Sval Energi AS (“Sval”). MLK is estimated to produce around 400 GWh per annum gross, from 24 turbines with a total capacity of 132 MW. Lundin Energy holds a 50 percent interest in MLK, with the remaining 50 percent held by Sval.

Lundin Energy and Sval have now taken over the ownership of the wind farm, which includes overall responsibility for the operations. OX2 AB has constructed the wind farm on budget under an engineering, procurement and construction contract and will remain responsible for the operations, maintenance and technical management of the wind farm. Commercial handover of the wind farm was originally planned for late Q4 2021, with final commissioning taking longer than anticipated. Lundin Energy is financially compensated for the delay through liquidated damages in the period up to commercial handover.

The newly constructed wind farm is equipped with the latest technology to ensure low cost and efficient operations. The 5.5 MW wind turbines have been purchased from, installed by and will be maintained by General Electric, with an availability warranty guaranteeing the availability and power production levels from the turbines through their operational life, giving the Company significant protection against downtime and outages. MLK will produce around 400 GWh per annum gross, which is equivalent to the annual electricity consumption of around 100,000 European households.

Daniel Fitzgerald, COO for Lundin Energy commented:
“We are very pleased that the MLK wind farm has now been completed and commissioned. This asset has been a key enabler in the Decarbonisation Plan for Lundin Energy and is now even more important as we become a renewables focused Company post completion of the proposed transaction with Aker BP. MLK is a state-of-the-art wind farm and is situated in a region with historically high spot electricity prices. It will be a key component of our future business and our mission of supplying sustainably produced energy while contributing to a lower carbon energy future.”

 

Lundin Energy presents its renewables business

Lundin Energy presents its renewables business

Lundin Energy presents its renewables business

07 March 2022

Lundin Energy AB (“Lundin Energy” or “the Company”) is pleased to announce the publication of a company description for the new, renewables-focussed business which includes the business overview, strategy, Board of Directors and management team. After completion of the proposed Combination of Lundin Energy’s E&P business with Aker BP, the renewables business will remain as a standalone Company with three high quality assets in the Nordics. The business will be debt free, focussed on cash generation and well positioned to build on its proven track record of creating shareholder value, while contributing to a sustainable energy future. A webcast presentation will be held today at 16.00 CET.

Renewables Company highlights:

  • Three high quality renewables assets in the Nordics, generating around 600 GWh per annum when fully operational
  • Fully funded with 130 MUSD of cash to build out the Karskruv project in southern Sweden
  • Generating free cash flow from late 2023 onwards, when all projects will be fully operational
  • Initially debt free, with the capacity to raise capital for growth and acquisitions
  • The Company will remain listed on Nasdaq Stockholm, and maintain its headquarters in Sweden

Lundin Energy’s renewable business will become the new renewables company within the Lundin Group of Companies, with full support from the Lundin family and building on its proven track record of value creation for shareholders. The current renewables portfolio consists of three high quality and newly constructed assets in the Nordics; a 50 percent interest in the 132 MW Metsälamminkangas wind farm in Finland, which is planned for commercial handover in March 2022, 100 percent ownership of the 86 MW Karskruv wind farm in Sweden, which is under development, and a 50 percent interest in the 77 MW Leikanger hydropower plant in Norway, which is fully operational. The business will be fully funded from the start, with a cash balance of 130 MUSD to build out the Karskruv project and is expected to generate free cash flow from late 2023, when all projects are fully operational. The Sudan legal case will remain with Lundin Energy; the Company refutes that there are any grounds for allegations of wrongdoing by any of its representatives and will continue to vigorously defend itself.

The European Union has unveiled ambitious plans to achieve a net zero emissions economy by 2050, which requires significant investment in renewable energy, as well as radical changes to the way energy is produced, consumed, stored and transported. The Company is in a strong position to take advantage of these opportunities with cash generative assets in some of the highest price regions in the Nordics, has the ability to raise capital for acquisitions and growth, and with a Board of Directors, management team and major shareholder fully aligned to grow the business. The business will be focussed on cash generation, fully exposed to spot market electricity prices and has already started to review acquisition and growth opportunities. Although initially focussed on the Nordics and renewable energy, the Company intends to screen further opportunities across Europe and in emerging and other technologies. The Company has retained SEB as strategic advisor to support in this growth phase.

The long-term vision is to grow the business into an industry-leading energy company, with scale and sufficient cash flow to be able to provide progressive shareholder returns, supporting the energy transition and contributing towards Europe’s goal for a sustainable energy future.

The Company will retain key members of the Lundin Energy Board of Directors and management team, with knowledge of the current asset base and a proven track record of building public companies which have delivered significant value for shareholders over many years. The intention is that the Board of Directors, post completion of the Combination with Aker BP at the end of the second quarter 2022, shall consist of Grace Reksten Skaugen (chair), Jakob Thomasen, Ashley Heppenstall, Aksel Azrac and Daniel Fitzgerald and that the senior management team shall consist of Daniel Fitzgerald as the CEO and Espen Hennie as CFO. More information including guidance for the renewables Company for 2022 will be published in the second quarter 2022.

Daniel Fitzgerald, intended CEO of the renewables Company commented:
“The energy transition is still in its infancy and with the EU’s ambitions to become carbon neutral, significant investments will be required across the whole energy system to meet these goals. Lundin Energy’s renewables business will start trading in a very strong position as a fully funded, cash generative, pure play Nordic renewables Company. Initially debt free and holding three high quality renewables assets in some of the highest priced regions in the Nordics, we have significant capacity to raise capital for acquisitions and growth. We see many opportunities across Europe, within both established and emerging technologies. With our track record in delivering shareholder value, we have all the building blocks needed to create an industry leading company which is well positioned to thrive through the energy transition.

“Lundin Energy has been a huge success story for shareholders over the last 20 years, culminating in the proposed Combination with Aker BP, allowing shareholders to remain invested in both the leading independent E&P Company in Europe and this new and exciting renewables Company. I believe that with the proposed Board and management team, the continued support of the Lundin family as a major shareholder and the Lundin entrepreneurial spirit, we will be able to grow this Company into an industry leading energy business.”

A webcast presentation will be held today (7 March 2022) at 16.00 CET, to present the renewables business including its strategy, Board of Directors and management team. Please click on the link below to view:

Renewables business webcast

A copy of the presentation will be published on Lundin Energy’s website ahead of the webcast going live.

The full company description outlining the details of the renewable business including its strategy, Board of Directors and management can be found on www.lundin-energy.com.

The proposed combination with Aker BP
According to a preliminary timetable, completion of the combination is planned to occur late in the second quarter 2022. Completion is conditional upon, among other things, the combination being approved at the Annual General Meetings of Lundin Energy and Aker BP, respectively, and receipt of necessary governmental clearances. The Annual General Meeting of Lundin Energy will be held on 31 March 2022. The notice of the Annual General Meeting, including the agenda and proposed resolutions, is available on the Company’s website, www.lundin-energy.com.

Press Release

Company Description

Lundin Energy’s Renewable Business outlook to be presented on 7 March 2022

Lundin Energy’s Renewable Business outlook to be presented on 7 March 2022

Lundin Energy’s Renewable Business outlook to be presented on 7 March 2022

24 February 2022

Lundin Energy AB (Lundin Energy) is pleased to announce that it will present the outlook for the Renewables Business, Board of Directors and management team, and future strategy, on 7 March 2022. The Renewables Business will be separated as a standalone business at the completion of the proposed combination of Lundin Energy’s E&P assets with Aker BP, as announced on 21 December 2021, which is expected to occur around the end of June 2022. A webcast presentation will be hosted on 7 March 2022 at 16.00 CET.

To attend the webcast presentation at 16.00 CET on 7 March 2022, please click on the below link to register: https://us06web.zoom.us/webinar/register/WN_XohxLNg5SkaHx2GYoyR7xA

A copy of the presentation will be published on Lundin Energy’s website ahead of the webcast going live.

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