OSLO: Swedish oil and gas producer Lundin Petroleum AB (LUPE.SK), part-owned by Norway’s Statoil ASA STO, +1.12% said Wednesday that it swung to a second-quarter net loss on the year, as record-high production was offset by foreign exchange losses.
The second-quarter net loss was $47.1 million, compared with a net profit of $61.1 million a year earlier, mainly due to foreign exchange losses of $63.5 million and higher interest payments due to higher debt. Revenue surged 68% on the year to $265.3 million amid record output. Second-quarter production more than doubled on the year to 63,900 barrels of oil equivalent a day, the highest level since the company was established in 2001, mainly due to the contribution from the Edvard Grieg field which started producing in late 2015.
Norway’s dominant oil producer Statoil in May increased its holding in Lundin Petroleum to 20.1%–following the acquisition of an 11.93% stake in January–in exchange for Statoil’s 15% interest in the Edvard Grieg field and stakes in several oil and gas pipelines.
Lundin said it was paid an average $44.26 a barrel for its crude oil sales in the quarter, a significant drop from the $65.41 a barrel it got in the same period a year earlier.
