Page 12 - EurOil Week 05 2021

EurOil PERFORMANCE EurOil

Lundin raises output forecast

after strong Q4

SWEDEN SWEDISH independent Lundin Energy has Lundin was able to bring its net debt down
raised its projection for 2021 production and has to $3.91bn by the end of December, from
Lundin is now targeting reported stronger than anticipated fourth-quar- $4.01bn a year before. The company also
carbon neutrality in ter earnings, thanks to growth at Norway’s Johan announced on January 27 it would pay out $1.8
2025, instead of 2030. Sverdrup field. The North Sea producer has also per share in dividends for 2020, or $512mn in
brought forward by five years its target for reach- total. This is up from $1 for 2019 and reverts
ing carbon neutrality, to 2025. back to Lundin’s payout level prior to the
Company EBIT climbed to $488.1mn in COVID-19 crisis.
Q4 from $382.5mn, while revenues grew to Shares in Lundin were up 3.5% after its latest
$779.7mn from $749.7mn. This was despite a results were released, at SEK234 ($27.9).
slide in its average realised oil price to $44.7 from
$60.75 per barrel. Carbon neutrality
Lundin’s output soared to 185,100 barrels Lundin said it was now targeting carbon neu-
of oil equivalent per day in the October-to-De- trality in 2025, instead of 2030, in light of good
cember quarter, up from 135,100 boepd a year progress on the electrification of its assets, invest-
earlier, on the back of rising output at Sverdrup. ment in renewables and plans to support natural
Lundin has a 20% interest in the Equinor-oper- carbon-capture projects, such as forestation.
ated field, which is on track to supply 535,000 The goal covers emissions from its own oper-
boepd by mid-year. ations and energy use, known as Scope 1 and 2
Lundin aims to produce 170,000-190,000 emissions, but only some of those from the use
boepd this year and ramp that up to over 200,000 of its products, known as Scope 3. This latter cat-
boepd from 2023, up from 164,500 boepd in egory is by the far the hardest to achieve for oil
2020 and higher than a previous goal of 170,000- and gas producers.
180,000 boepd from 2021. Lundin expects over 95% of its oil and gas
“Our operations and key projects remain production to be powered from the shore by
on track, despite the impact of [coronavirus] 2023, and has agreed with Land Life Company
COVID-19 and unprecedented oil price volatil- on the planting on some 8mn trees. This part-
ity, demonstrating the resilience of our industry nership will see $35mn in investment between
leading, low-cost business,” Lundin CEO Nick 2021 and 2025, leading to the capture of 2.6mn
Walker said. tonnes of CO2.
Lundin aims to spend $260mn on explora- The company continues to invest in the
tion in 2021, versus $153mn last year, targeting Leikanger hydropower project (HPP) in Nor-
some 300mn boe from eight exploration wells, way this year, which is on track for completion
it said. in the next few months. It is also developing the
“I am confident that we can continue to grow Metsalamminkangas wind farm in Finland, due
resources,” Walker said. to come online in 2022.
It also said it would expand development Lundin made its 2030 carbon neutrality
expenditure to $850mn this year from $640mn pledge in January last year. It was formerly
in 2020, while reducing renewable and car- known as Lundin Petroleum but changed its
bon-offsetting investment to $70mn from name to Lundin Energy “to better reflect the
$96mn. Its abandonment spending is expected business today and the clear actions and targets
to amount to $20mn, versus $53mn in 2020. towards a lower-carbon future.” ™

P12 www. NEWSBASE .com Week 05 04•February•2021