Lundin sees profit drop despite spike in revenues

Swedish oil company Lundin Petroleum saw its profit drop in the third quarter of 2018 despite higher revenues. 

Lundin on Wednesday posted revenues of $636.4 million for the third quarter 2018 compared to $517.2 million revenues in the corresponding period of 2017.

The company’s net profit for this year’s third quarter was $62.6 million, a significant decrease from a profit of $227 million in the year-ago period.

Lundin’s production during the quarter decreased to 78.2 thousand barrels of oil equivalent per day (Mboepd) from 89.2 Mboepd in the same period last year.

Alex Schneiter, President and CEO of Lundin Petroleum, said: “The third quarter has been another good period of operational and financial delivery, which has benefitted from continued high performance from our quality asset base and higher commodity prices. For the second quarter in a row, we have generated an EBITDA in excess of USD 500 million and also a record high quarterly free cash flow of approximately USD 230 million.”

Looking ahead, Schneiter said: “The fourth quarter will again be a busy period for us, as we progress our key projects towards commercialisation, including the Luno II field development where PDO will be submitted in early 2019 and the Rolvsnes extended well test. We will also be drilling three high impact exploration wells in the Froan Basin, Mandal High and southeastern Barents Sea core areas, as well as two important follow on exploration wells in the Alvheim area, significantly de-risked by the successful Frosk discovery earlier in the year.

Lundin’s updated appraisal and exploration expenditure guidance for 2018 is being maintained at $300 million.

Offshore Energy Today Staff