Lundin Reports on Q3 Gains and Losses
Sweden’s Lundin Petroleum has said it will recognise a $757mn gain from a stake sale at Norway’s Johan Sverdrup project in its third-quarter earnings, but the impact will be partly offset by exploration write-offs and foreign exchange losses.
Lundin said in a filing on October 16 it would book the post-tax gain in connection with its sale of a 2.6% interest in Sverdrup to Equinor, closed in August. The transaction left Lundin with a 20% position at the North Sea field, which entered production earlier this month.
But Lundin warned it would also include in its report a $14mn pre-tax exploration cost, relating mainly to a dry well it sank this year at the Rumpetroll prospect off Norway. But this will be countered by a $11mn tax credit. It will also recognise a $272mn net foreign exchange loss, because of the weakening of the Norwegian krone and the euro against the US dollar. This loss is largely non-cash, it said, reflecting the revaluation of loan balances.
Lundin will publish its third-quarter results on October 31.