Swedish energy company Lundin Petroleum said there is no doubt the industry is under pressure, but stressed its assets offshore Norway should spur recovery.
"There is no question in my mind that this last quarter has been a challenging and at the same time a remarkable one, in which we have laid solid foundations to deliver significant sustainable value growth as we also move towards a more favorable oil market environment," Lundin President and CEO Alex Schneiter said in a statement.
Full-year 2015 revenue of $569.3 million was lower than the previous year by roughly 27 percent. For the first quarter of 2016, earnings before interest and taxes were up 45 percent and the company recorded a net profit of $114 million, against a year-on-year loss of $231 million.
In January, Norwegian counterpart Statoil spent $538 million to acquire an 11.9 percent stake in Lundin, which later in March received a short-term revolving credit facility of $300 million, with additional options, from Nordic financiers. In early May, Statoil released its entire holdings, a 15 percent stake, in the Edvard Grieg field off the coast of Norway in exchange for the ownership of 68.4 million shares in Lundin.
Lundin said it was the successful companies that took advantage of the opportunities in challenging times, as it did by teaming up with Statoil in Norwegian waters. After some initial setbacks, Lundin said the Edvard Grieg field was now in full swing.
At Johan Sverdrup, one of the largest fields ever discovered off the coast of Norway, Lundin said it was able to raise its production guidance by more than 15 percent. Commercial production is expected at the end of 2019.
"Looking back, whilst in our last six months we have had disappointing exploration results, I remain confident in our ability to continue to find new resources within our core exploration areas," Schneiter said.
