Stockholm, 2016-08-03 08:00 CEST (GLOBE NEWSWIRE) --
Six months ended 30 June 2016 (30 June 2015)
| · | Production of 63.1 Mboepd (27.4 Mboepd) |
| · | Revenue of MUSD 456.6 (MUSD 279.1) |
| · | EBITDA of MUSD 330.9 (MUSD 192.4) |
| · | Operating cash flow of MUSD 386.0 (MUSD 347.3) |
| · | Net result of MUSD 66.0 (MUSD -171.0) including a net foreign exchange gain of MUSD 95.1 (loss of MUSD 176.7) |
| · | Net debt of MUSD 4,224 (31 December 2015: MUSD 3,786) |
| · | Record production level achieved following the Edvard Grieg field start-up in late 2015. |
| · | Transaction to acquire 15 percent interest in the Edvard Grieg field and interests in associated pipeline assets from Statoil ASA completed on 30 June 2016. Lundin Petroleum AB issued 27.6 million new shares to Statoil ASA in consideration for the assets. In addition, the Company also issued 1.7 million new shares and transferred 2 million shares to Statoil ASA for a cash consideration of MUSD 64.1. |
| · | New reserve-base lending facility of USD 5.0 billion entered into with an initial firm commitment of USD 4.3 billion subsequently increased by USD 0.7 billion to USD 5.0 billion. |
Second quarter ended 30 June 2016 (30 June 2015)
| · | Production of 63.9 Mboepd (28.9 Mboepd) |
| · | Revenue of MUSD 265.3 (MUSD 157.8) |
| · | EBITDA of MUSD 206.1 (MUSD 106.5) |
| · | Operating cash flow of MUSD 223.4 (MUSD 191.6) |
| · | Net result of MUSD -48.3 (MUSD 59.9) including a net foreign exchange loss of MUSD 63.5 (gain of MUSD 27.3). |
Comments from Alex Schneiter, President and CEO
I am very pleased with our second quarter operational performance with production about 15 percent ahead of mid-point guidance and corresponding cash operating costs at USD 8.85 per barrel. Towards the end of the second quarter we successfully completed the acquisition of an additional 15 percent interest in the Edvard Grieg field from Statoil ASA, raising Lundin Petroleum's stake to 65 percent working interest in the field. This transaction has further consolidated our balance sheet and will materially improve our operating cash flow during the years ahead of the Johan Sverdrup start-up.
On the operational side we continue to deliver a strong performance with the second quarter average production for the Company of 63,900 boepd exceeding our mid-point guidance by about 15 percent. Performance on the Edvard Grieg field continues to exceed expectations and we are also very pleased to have successfully completed our first water injector well which is now fully operational. We firmly remain on track to achieve our full year production guidance of between 65,000 and 75,000 boepd.
On the financial side, another major milestone was achieved during the second quarter by bringing the total firm commitment from existing and new banks under the current reserve-based lending facility to USD 5.0 billion from the previously reported commitment of USD 4.5 billion.
Our organic growth strategy continues and I was very pleased with the results of the 23rd licensing round which saw Lundin Norway as one of the leading companies in terms of licence awards received. Five new licences in the southern Barents Sea have been awarded to the Company in what is likely to become one of the most exciting growth areas in Norway in the years to come.
At this point, suffice to say, it is mission accomplished in terms of major Company developments during the first half of 2016.
Audio cast presentation
Listen to President and CEO Alex Schneiter and CFO Mike Nicholson comment on the report at a live audio cast on Wednesday 3 August 2016 at 09.00 CEST.
The presentation slides will be available on www.lundin-petroleum.com prior to the commencement of the audio cast. Please dial in to listen to the presentation on the following telephone numbers: Sweden: +46 8 519 993 55, International: +44 203 194 05 50, International Toll Free Number: +1 855 269 26 05.
Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of worldclass assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker "LUPE"). Lundin Petroleum has proven and probable reserves of 716.2 million barrels of oil equivalents (MMboe) as at 1 January 2016.
For further information, please contact:
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Maria Hamilton Head of Corporate Communications E-mail: maria.hamilton@lundin.ch Tel: +41 22 595 10 00 Tel: +46 8 440 54 50 |
Teitur Poulsen VP Corporate Planning & Investor Relations Tel: + 41 22 595 10 00 |
This information is information that Lundin Petroleum AB is required to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07.00 CEST on 3 August 2016.
Forward-Looking Statements
Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable securities legislation). Such statements and information (together, "forward-looking statements") relate to future events, including the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will prove to be correct and such forward-looking statements should not be relied upon. These statements speak only as on the date of the information and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, operational risks (including exploration and development risks), productions costs, availability of drilling equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. These risks and uncertainties are described in more detail under the heading "Risks and Risk Management" and elsewhere in the Company's annual report. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement.
