Page 10 - EurOil Week 06 2022

EurOil PERFORMANCE EurOil

Lundin profits soar on

high oil, gas prices

SWEDEN PROFITS at Swedish upstream firm Lundin Lundin said its 2022 guidance took into
Energy surged in the fourth quarter on the back account “normal operational efficiencies” and
Lundin agreed to of higher oil and gas prices and a steep growth planned outages, adding that it also reflected the
merge with Aker BP for in its production rate, the company reported last start-up of the second stage of Equinor’s Johan
$13.9bn in December. week. Sverdrup oilfield in the fourth quarter. Sverdrup
Earnings before interest and tax (EBIT) for alone will account for 55% of Lundin’s produc-
the three-month period amount to $1.27bn, up tion this year, the company said, while Edvard
from only $492mn a year earlier. Its net result Grieg will provide 40% and the Alvheim area will
came to $121.7mn, though, which was down make up the rest.
from $304mn in the final quarter of 2020. Production is slated to exceed 200,000 boepd
Lundin agreed in December to sell its Norwe- by 2023, once Sverdrup is producing at its full
gian assets to Aker BP for $13.9bn in a de facto capacity of 755,000 boepd. Aker BP is also a
merger between the two rivals. shareholder in the field, and the enlarged com-
“Value creation is at the heart of our business pany created by the merger will have a 31.6%
and this deal is a unique opportunity to create stake in the field.
a world-class company, with significant scale, While Lundin’s core oil and gas business
production growth and strong free cash flow drove the growth in profits last year, its renew-
generation into the next decade,” Lundin CEO ables business suffered a $3.6mn loss. Once the
Nick Walker said in a statement. “Coupled with merger with Aker BP is complete, the renewa-
that is a business with industry-leading low costs bles business will have a cash balance of $130mn,
and low carbon emissions.” which Lundin has said is enough to cover all its
Walker said the deal was on track to be com- capital needs until late 2023.
pleted around the midpoint of the year. Another highlight was a reduction in Lun-
Production at Lundin averaged 194,800 bar- din’s net debt by around $1.2bn over the course
rels of oil equivalent per day in the fourth quarter, of last year. It achieved this with the help of
bringing the full-year average at 190,300 boepd, record high cash flow of $1.6bn.
which was near the upper end of its 180,000- “Lundin Energy delivered record production
195,000 boepd guidance. Output was up from and financial results, underpinned by continued
164,500 boepd in 2020 and is expected to reach excellent operational performance and strong oil
180,000-200,000 boepd in 2022, Lundin said. and gas prices,” Walker said. ™

P10 www. NEWSBASE .com Week 06 10•February•2022