THESE MATERIALS DO NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE OR A SOLICITATION OF AN OFFER TO PURCHASE THE SECURITIES DESCRIBED IN SUCH MATERIALS IN
- Board of Directors of
Lundin Energy and Aker BP agreed on a combination to create the leading European independent E&P company, with completion of the transaction anticipated around mid 2022 - Record financial performance in 2021, with free cash flow generation of
USD 1.6 billion and net debt reduced toUSD 2.7 billion - Board of Directors propose to increase 2021 quarterly dividend by 25 percent to
USD 0.5625 per share until completion of the Aker BP transaction - Record quarterly production for the fourth quarter of 195 Mboepd and 2022 production guidance set between 180 and 200 Mboepd
- Key projects progressing on schedule, with Johan Sverdrup Phase 2 set for first oil in the fourth quarter of 2022 and five new projects heading towards sanction within the temporary tax incentives
- Delivering growth with resource additions of 200 percent of production in 2021
- On track with Decarbonisation Plan to achieve carbon neutrality by 2023 from operational emissions
Financial summary1
12 months | 1 3 months | 12 months | 3 months | |
Production in Mboepd | 190.3 | 194.8 | 164.5 | 185.1 |
Revenue and other income in MUSD | 5,484.7 | 1,621.8 | 2,564.4 | 779.7 |
CFFO in MUSD | 3,058.0 | 558.1 | 1,528.0 | 276.7 |
Per share in USD | 10.75 | 1.96 | 5.38 | 0.97 |
EBITDAX in MUSD | 4,822.8 | 1,462.2 | 2,140.2 | 708.4 |
Per share in USD | 16.96 | 5.14 | 7.53 | 2.49 |
Free cash flow in MUSD | 1,645.5 | 22.6 | 448.2 | -97.5 |
Per share in USD | 5.79 | 0.08 | 1.58 | -0.34 |
Net result in MUSD | 493.8 | 121.7 | 384.2 | 303.7 |
Per share in USD | 1.74 | 0.43 | 1.35 | 1.07 |
Adjusted net result in MUSD | 795.7 | 253.3 | 280.0 | 86.9 |
Per share in USD | 2.80 | 0.89 | 0.99 | 0.31 |
Net debt in MUSD | 2,747.9 | 2,747.9 | 3,911.5 | 3,911.5 |
1 All numbers in this table relate to continuing and discontinued operations combined. For a further breakdown between continuing and discontinued operations, reference is made to pages 32-33
“We were very pleased to announce at the end of 2021, that the Board of Directors of
“I am convinced that the combination proposal with Aker BP is a win-win outcome for both sets of shareholders, as it creates a business that is positioned to prosper through the energy transition and deliver increased and sustainable dividends. For
“I’m pleased to report that in 2021
“Our world class assets continue to outperform, with industry leading production efficiency and low operating costs. We exited the year with production at just under 200 Mboepd and full year production came in above the top of our original guidance range.
“Johan Sverdrup keeps on delivering above expectations. Phase 2 of the project, which will lift production to 755 Mbopd gross, is making excellent progress and is firmly on track for first oil in the fourth quarter of 2022.
“At the Greater
“We completed the acquisition of a further interest in the major Wisting oil development project, taking our share to 35 percent, which will help sustain the production profile of the business long term with a significant addition of low carbon emissions barrels. The Wisting development concept has been decided upon and the project is heading towards sanction at the end of 2022.
“Our growth strategy continues to deliver results with total resource additions in 2021 of 200 percent of produced volumes, supported by further reserves growth in the Greater
“At the same time, we are making great progress on our industry leading Decarbonisation Plan and are set to become carbon neutral by 2023 from operational emissions, with around 60 percent of our production already being carbon neutral. I see this as a key value differentiator for
“Financially we had a very strong year, delivering free cash flow of
I would like to thank all our stakeholders for their continued support over the last year, and our employees for their tremendous efforts in delivering these record results.”
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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 Lundin Energy’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
Attachment
Lundin Energy - Year end report 2021 - V1 - 01022022en
Source:
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