Skip to main content

Swedish oil firm Lundin Petroleum reported a smaller than expected drop in quarterly core earnings on Wednesday, and cut its capital spending guidance after reducing its stake in Norway’s giant Johan Sverdrup field.

Earnings before interest, tax, depreciation and amortization (EBITDA) fell to $412 million in the second quarter from $512 million a year earlier, beating the mean estimate of $399 million in a Refinitiv poll.

The company cut its 2019 capital expenditure to $785 million from $930 million after agreeing to sell a 2.6 per cent stake in Johan Sverdrup to operator Equinor for $910 million on July 7.

Story continues below advertisement

Lundin’s production for the second quarter stood at 77,500 barrels of oil equivalents per day (boepd), down from 81,200 boepd in the same quarter a year ago.

The company maintained its 2019 full year production guidance at between 75,000 to 95,000 barrels of oil equivalents per day (boepd) and repeated its outlook for output at over 150,000 boepd following the startup of Sverdrup production.

Lundin has increased its 2019 exploration budget to $325 million from $300 million previously, planning to drill seven exploration and appraisal wells in the second half of the year after drilling 12 wells during the last six months.

Lundin also said it now expects the Edvard Grieg field to produce at plateau levels until around the end of 2022, from a previous view of mid-2020 thanks to satellite field tie-backs.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter