Lundin Energy to Lift Dividend by 25% as 3Q Profit Nearly Triples

October 29, 2021

Johan Sverdrup field - Credit: Lundin Energy
Johan Sverdrup field - Credit: Lundin Energy

Swedish independent oil firm Lundin Energy will raise its dividend for 2021 by 25% after its third-quarter operating profit almost tripled from a year ago, the company said on Friday.

Lundin's earnings before interest and tax (EBIT) for July-September rose to $1.07 billion from $362.3 million a year ago, helped by record quarterly output and rising oil and gas prices.

The company said it would propose to increase the dividend for 2021 to $2.25 per share, an equivalent of $640 million, from $1.8 per share paid for 2020.

"Our world-class producing assets keep on outperforming, with excellent production efficiency and industry-leading low operating costs, delivering record production in the third quarter," Lundin's Chief Executive Nick Walker said.

Lundin, which has 20% stake in Norway's giant Johan Sverdrup oilfield, said it expected full-year output towards the upper end of its guidance of 180,000-195,000 boepd, after its output rose to a record 194,000 boepd in the third quarter.

The company announced on Thursday buying a further 25% stake in the Wisting oil development in the Barents Sea from OMV for $320 million.

The deal takes Lundin's stake to 35% in the 500 million barrel oil development operated by Equinor, with expected production start in 2028. 

(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)



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