Stockholm, 2016-11-02 07:30 CET (GLOBE NEWSWIRE) --
Nine months ended 30 September 2016 (30 September 2015)
| · | Production of 68.9 Mboepd (30.3 Mboepd) |
| · | Revenue of MUSD 774.0 (MUSD 433.3) |
| · | EBITDA of MUSD 584.7 (MUSD 291.1) |
| · | Operating cash flow of MUSD 667.8 (MUSD 524.3) |
| · | Net result of MUSD 239.8 (MUSD -372.6) including a net foreign exchange gain of MUSD 230.9 (loss of MUSD 378.1) |
| · | Net debt of MUSD 4,307 (31 December 2015: MUSD 3,786) |
| · | 26 percent increase in production in the third quarter of 2016 compared to the second quarter following the Edvard Grieg production ramp-up and increased 15 percent equity in the field following the completion of the transaction with Statoil on 30 June 2016. |
| · | Full year production guidance revised to 70,000–75,000 boepd from 65,000–75,000 boepd and cost of operations per boe guidance lowered to USD 6.50 from USD 7.10. |
| · | Record low cost of operations per boe of USD 5.55 and cash operating costs per boe of USD 7.22 in the third quarter of 2016. |
| · | In August 2016, the operator provided a guidance update on the Johan Sverdrup project announcing reduced capital costs to NOK 99 billion gross for Phase 1 and NOK 140–170 billion gross for Phase 1 and Phase 2 and an increased Phase 1 and Phase 2 production capacity of 660,000 bopd gross. The resource range increased to 1.9–3.0 billion boe. |
| · | Secured new fully committed reserve-based lending facility of USD 5.0 billion. |
Third quarter ended 30 September 2016 (30 September 2015)
| · | Production of 80.4 Mboepd (36.0 Mboepd) |
| · | Revenue of MUSD 317.4 (MUSD 154.2) |
| · | EBITDA of MUSD 253.8 (MUSD 98.7) |
| · | Operating cash flow of MUSD 281.9 (MUSD 177.0) |
| · | Net result of MUSD 173.8 (MUSD -201.6) including a net foreign exchange gain of MUSD 135.8 (loss of MUSD 201.4). |
Comments from Alex Schneiter, President and CEO
Our third quarter operational performance has again delivered excellent results driven by a continued strong performance from the Edvard Grieg field and our other main producing assets delivering at or above expectation. We remain firmly on track to achieve our full year production guidance and given the strong performance we are revising our guidance to 70,000 to 75,000 boepd from 65,000 to 75,000 boepd.
With around USD 1 billion of liquidity headroom, our balance sheet is able to sustain long term oil prices as low as USD 40 per barrel and still fully fund the Johan Sverdrup Phase 1 development while continuing to invest in an exciting and aggressive organic growth strategy.
On the development side, Johan Sverdrup continues to progress according to plan with the Phase 1 project execution in excess of 26 percent completed. During the third quarter, we have also seen further crystallisation of Johan Sverdrup cost reductions, increased Phase 1 and Phase 2 production capacities and increased resources.
On the exploration and appraisal front, we are also very active with the successful completion of the Alta 3 appraisal well during the third quarter delivering very encouraging results and the ongoing Neiden exploration well. We are also pleased to announce that our 2017 exploration and appraisal campaign will be a very exciting one encompassing four exploration wells and four appraisal wells with drilling in southern and eastern Barents Sea, the Utsira High area and the Alvheim area.
For the third quarter in a row, it is mission accomplished and never before has the Company been so well positioned for its next growth phase which is forecast to see the Company producing in excess of 120,000 boepd by the time Johan Sverdrup Phase 1 will come onstream at the end of 2019.
Webcast presentation
Listen to President and CEO Alex Schneiter and CFO Mike Nicholson comment on the report at a live webcast on Wednesday 2 November 2016 at 09.00 CET.
The presentation slides will be available on www.lundin-petroleum.com prior to the commencement of the webcast. 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 CET on 2 November 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.
