Update on second quarter 2018 financial results
17 Julio 2018 - 1:30AM
Update on second quarter 2018 financial results
For the second quarter 2018, Lundin
Petroleum AB (Lundin Petroleum) will expense pre-tax exploration
costs of approximately MUSD 6, recognise a net foreign exchange
loss of approximately MUSD 153 and realise a gross profit from
marketing third party crude oil of MUSD 0.5.
The profitability for the second quarter 2018 will be impacted
by certain expensed exploration costs as well as a net foreign
currency exchange loss mainly related to the revaluation of loan
balances. These items are largely non-cash and will have no impact
on operating cash flow or EBITDA.
Exploration CostsFor the second quarter 2018,
Lundin Petroleum will incur pre-tax exploration costs of
approximately MUSD 6 which will be charged to the income statement
and offset by a tax credit of approximately MUSD 5.
Foreign Exchange LossLundin Petroleum will
recognise a net foreign exchange loss of approximately MUSD 153 for
the second quarter 2018. The Norwegian Krone and the Euro weakened
against the US Dollar by approximately 5 and 9 percent
respectively. The foreign exchange loss mainly relates to the
revaluation of loan balances at the prevailing exchange rates at
the balance sheet date.
Marketing of Third Party Crude OilIn addition
to marketing its own production, Lundin Petroleum at times markets
crude oil from third parties. For the second quarter 2018, revenue
from the sale of crude oil from third parties amounted to
MUSD 133.1 offset by the purchase of crude oil from third
parties of MUSD 132.6. This will result in a gross profit on third
party activities of MUSD 0.5 for the second quarter 2018.
Lundin Petroleum is one of Europe’s leading
independent oil and gas exploration and production companies with
operations focused on Norway and listed on NASDAQ Stockholm (ticker
"LUPE"). Read more about Lundin Petroleum’s business and operations
at www.lundin-petroleum.com
For further information, please contact:
Alex BuddenVP Communications
& Investor RelationsTel: +41 22 595 10
19alex.budden@lundin.ch |
|
Sofia AntunesInvestor
Relations OfficerTel: +41 795 23 60 75sofia.antunes@lundin.ch |
|
Robert ErikssonManager, Media
CommunicationsTel: +46 701 11 26
15robert.eriksson@lundin-petroleum.se |
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.
- Lundin Petroleum - Q2 2018 Financial update -
V5-20180717en