Lundin Petroleum reports booming profits

Swedish oil production and exploration firm Lundin Petroleum has reported a profit before tax of $79 million ($30.9 million) for the second quarter, meeting analyst expectations.

Lundin Petroleum reports booming profits

Including one off items the firm reported pre-tax figures of $436 million, including the hiving off of UK assets worth some $358 million.

The results include depreciation of oil and gas assets of $35.1 million ($29 million).

Revenues for the period amounted to $189 million (132), beating analyst expectations of $184 million. Operating results (Ebitda – Earnings before interest, taxes, depreciation and amortization) amounted to $139 million ($125 million).

The firm announced an investment budget of $285 million for the second quarter with $190 million to be spent on prospecting.

Lundin Petroleum stock jumped more than 4 percent when the Stockholm exchange opened on Wednesday morning.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


Sweden’s Lundin in new oil find near Norway

Swedish oil firm Lundin Petroleum said Monday it had made a potentially significant oil find off Norway, near another discovery that renewed explorers' interest in the North Sea.

“A gross oil column in excess of 40 metres has been proven” at the Luno II well, the company said in a statement, adding that the oil was of good quality.

The Swedish company said it would provide a range of reserve estimates within two or three weeks.

The discovery was made near Lundin’s Edvard Grieg field, as well as the Johan Sverdrup field that two years ago became one of the five largest discoveries on the Norwegian Continental Shelf, and the country’s largest find since the mid-eighties.

Johan Sverdrup holds between 1.7 and 3.3 billion barrels of oil equivalent (boe), according to estimates due to be updated in the near future.

“The pressure data indicates that the petroleum system in Luno II is different to that seen in the Edvard Grieg and Johan Sverdrup fields,” the company said.

Lundin has a 40 percent stake in the Luno II well, with Norway’s Statoil and Britain’s Premier Oil holding 30 percent each.

AFP/The Local/dl

Follow The Local on Twitter