Report for the three months ended 31 March 2021

• Record quarterly revenue of USD 1.1 billion with an achieved oil price of USD 61 per barrel
  
  
• Strong free cash flow generation of MUSD 526, operating cost below guidance at USD 2.85 per boe and net debt reduced to below USD 3.5 billion
• Dividend of USD 1.80 per share corresponding to MUSD 512 for the financial year 2020, approved by the 2021 AGM
• Strong production performance of 183 Mboepd, above mid-point of guidance for the quarter
• Johan Sverdrup Phase 1 production set to increase to 535 Mbopd ahead of schedule in May 2021
• Key projects on track to deliver growth to over 200 Mboepd by 2023 and pipeline of new projects being matured to sustain production
• Decarbonisation Strategy on track to achieve carbon neutrality from 2025 from operational emissions
• World’s first certified carbon neutrally produced crude oil sale

Financial summary

Comment from Nick Walker, President and CEO of Lundin Energy:

“I am pleased to note that performance in the first quarter of 2021 has been about delivery on all fronts, which combined with the oil price recovery, yielded record financial results. And whilst the challenges of COVID-19 are still with us, we’ve continued to keep our main business activities on track.

“Our world class producing assets continue to outperform with excellent production efficiency, along with a strong HSE track record, driving our production for the quarter above the mid-point of the guidance range, whilst also maintaining our industry leading low operating costs.

“Johan Sverdrup continues to exceed expectations. Phase 1 production capacity is about to step-up to 535 Mbopd gross, and I expect, when the impact on the full field capacity has been assessed, we will see an increase above the current guidance of 720 Mbopd. Phase 2 of the project is progressing well with the offshore installation programme set to commence this quarter and remains on track for first oil in the fourth quarter of 2022.

“At the Greater Edvard Grieg Area, the projects that support the long-term plateau extension are on schedule, with the Edvard Grieg infill well programme underway and the Solveig and Rolvsnes projects set for first oil in the third quarter. I also see lot’s more to come, with the new opportunities we are progressing in the area.

“With the projects we have underway we remain on target to deliver growth to over 200 Mboepd by 2023. I’m confident we can sustain at these levels with a pipeline of new projects that are being matured and an exciting exploration programme, targeting material resources.

“Financially we had a record quarter, with revenue of USD 1.1 billion, which delivered significant free cash flow of MUSD 526. This really shows the quality and resilience of our business, allowing us to fund growth, cover dividends and deleverage; reducing net debt to below USD 3.5 billion.

“We continue to make good progress decarbonising our operations, with everything in place to achieve carbon neutrality from 2025. Our recent commitment to the Karskruv wind farm in Sweden ensures that by end 2023, over 95 percent of our oil production will be powered by our own generated renewable energy. Leveraging our industry leading low emissions position, we recently announced the world’s first certified, carbon neutrally produced crude oil sale, which I believe will be the first of many, and will become a key value differentiator for Lundin Energy.

“We’ve had a strong start to the year, making good progress on our key business priorities and looking forward, I remain confident that we can continue to deliver resilient, sustainable, growth into the future.”

Audiocast Presentation

Listen to Nick Walker, President and CEO, and Teitur Poulsen, CFO, commenting on the report and the latest developments in Lundin Energy at a live audiocast, held today, 29 April 2021 at 13:00 CEST. Follow the presentation live on -energy.com or dial in using the following telephone numbers:

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Access Pin:  98774705

Link: -server.com/mmc/p/spnx35xe

Lundin Energy is an experienced Nordic oil and gas company that explores for, develops and produces resources economically, efficiently and responsibly. We focus on value creation for our shareholders and wider stakeholders through three strategic pillars: Resilience, Sustainability and Growth. Our high quality, low cost assets mean we are resilient to oil price volatility, and our organic growth strategy, combined with our sustainable approach and commitment to decarbonisation, firmly establishes our leadership role in a lower carbon energy future. (Nasdaq Stockholm: LUNE). For more information, please visit us at -energy.com or download our App /lundin

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Forward-looking statements

Certain statements made and information contained herein constitute “forward-looking information” (within the meaning of applicable securities legislation). Such statements and information (together, “forward-looking statements”) relate to future events, including Lundin Energy’s future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will prove to be correct and such forward-looking statements should not be relied upon. These statements speak only as on the date of the information and Lundin Energy does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, operational risks (including exploration and development risks), productions costs, availability of drilling equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. These risks and uncertainties are described in more detail under the heading “Risk management” and elsewhere in Lundin Energy’s Annual Report. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement.

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