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.
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.