Lundin Petroleum Sinks to a Loss

Published at 11:00AM - 03/08/16

Lundin Petroleum posted a loss in its second quarter 2016 revenues, mainly caused by foreign exchange losses.

According to the Swedish independent’s Q2 report, production levels went up but foreign exchange losses offset the potential gain.

“These strong results are led by the Edvard Grieg field which continues to perform ahead of expectations with high uptime and good reservoir performance, Lundin Petroleum President and CEO, Alex Schneiter, said.

Lundin Petroleum Sinks to a Loss 

The oil company posted a loss of US$48.3 million (£36.3 million), compared to a profit of US$59.9 million (£45 million) in the second quarter of 2015.

The company’s revenues increased for the quarter, reaching a total of US$265.3 million (£199.4 million), compared to US$157.8 million (£118.6 million) in the second quarter of 2015.

Production averaged 63,900 barrels of oil equivalent per day (boepd) during the period, exceeding its mid-point guidance by about 15%, compared to 28.9 mboepd in the same period last year.

Lundin said it remains on track to achieve full year production guidance of between 65,000 and 75,000 boepd.

Lundin Posts Operational Success Despite Revenue Downturn

Lundin successfully completed the acquisition of an additional 15% interest in the Edvard Grieg field from Statoil, raising its stake to 65% in the field.

The Southern Barents Sea will continue to be a key growth area for the company, especially following the results of the 23rd licensing round, there Lundin gained five new licenses in the area.

“In parallel, we have resumed our exploration and appraisal drilling activities on the Loppa High in the southern Barents Sea, with the drilling of three back to back wells,” the CEO added.

Johan Sverdrup is also developing according to plan, he stated further.

“I continue to firmly believe that we will see further costs savings as we progress with the project and as we finalise the definition of the Phase 2 concept selection,” Schneiter explained further.