Update on Q4 2019 financial results and webcast details for 31 January 2020

Q4 financial update

Update on fourth quarter 2019 financial results and
webcast details for 31 January 2020

15 January 2020

Lundin Petroleum AB (Lundin Petroleum) will publish its financial report for the fourth quarter 2019, on Friday 31 January 2020. For the fourth quarter 2019, Lundin Petroleum will expense pre-tax exploration costs of approximately MUSD 41, expense pre-tax decommissioning costs of approximately MUSD 19 and recognise a largely non-cash net foreign exchange gain of approximately MUSD 106.

Exploration costs
For the fourth quarter of 2019, Lundin Petroleum will incur pre-tax exploration costs of approximately MUSD 41 which will be charged to the income statement and offset by a tax credit of approximately MUSD 32. The exploration costs are mainly related to the dry or non-commercial wells on the Toutatis prospect (PL896), the Gladsheim prospect (PL921) and the Enniberg prospect (PL917).

Decommissioning costs
For the fourth quarter of 2019, Lundin Petroleum will incur pre-tax decommissioning costs of approximately MUSD 19, which will be charged to the income statement and offset by a tax credit of approximately MUSD 15. The decommissioning costs are related to expected increases in site restoration costs for the Brynhild and Gaupe fields.

Net debt and foreign exchange gain
The net debt position of Lundin Petroleum at 31 December 2019 amounted to USD 4.0 billion resulting in available liquidity of USD 1.0 billion within its USD 5.0 billion reserve-based lending facility.

Lundin Petroleum will recognise a net foreign exchange gain of approximately MUSD 106 for the fourth quarter of 2019. Both the Norwegian Krone and Euro strengthened against the US Dollar by approximately 3 percent during the fourth quarter of 2019. The foreign exchange gain is largely non-cash and mainly relates to the revaluation of loan balances at the prevailing exchange rates at the balance sheet date.

Change in under/overlift balances
Lundin Petroleum recognises income based on its sold volume (sales method). Consequently, changes in inventory and under/overlift balances are reported as an adjustment to cost valued at production cost, including depletion. During the fourth quarter of 2019, Lundin Petroleum was overlifted by 0.1 Mboepd offset by an increase in inventory balances, related to the filling of the Johan Sverdrup pipeline, of 2.7 Mboepd.

Fourth Quarter 2019 results and Capital Markets Day 2020
Lundin Petroleum’s financial report for the fourth quarter 2019, will be published on Friday 31 January at 07:30 CET.

Lundin Petroleum management team will present its financial results for the fourth quarter 2019 and capital markets day presentation by webcast at 11:00 CET (10:00 GMT) on the 31 January. Please follow the event live at www.lundin-petroleum.com or dial in using the following telephone numbers with the pin code shown below:

Sweden +46 8 56642651
UK +44 3333000804
United States +1 6319131422
Norway +47 23500243

Access Pin : 58812582

Link : https://lundinpetroleum.videosync.fi/2020-01-31-q4_cmd