Lundin Energy provides guidance for its renewable energy business

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Lundin Energy AB

lundin Energy AB (Lundin energy or “the enterprise”) is glad currently instructions for the second half of 2022where the company is renamed OrrOn Energy and includes only Lundin Energy’s renewable energy. A webcast presentation with a question and answer meeting will be held today at 5:00 p.m. CEST to present the guidelines and conduct a company discussion overview to the Orron energy.

corporate strategy and market oroutlook
Orrön Energy will be a pure-play renewable company with high-quality, low-cost renewable energy assets in Scandinavia. Orrön Energy will have a strong portfolio of liquid assets, no debt and up to MUSD 180 in financial capacity to fund further growth and mergers and acquisitions. Demand for renewable energy in Europe is expected to grow significantly in the coming years, while electricity prices are expected to remain strong. Not only does power generation and transmission require significant investment and growth, but the technology to decarbonize energy systems is still in its infancy. Orrön Energy intends to capitalize on these opportunities; with the aim of creating value through the energy transition, with an acquisition and organic growth strategy.

Orrön Energy will start trading on Nasdaq Stockholm on June 23, 2022, initially under the ticker “LUNE” from Lundin Energy pending the registration of the approved name change to Orrön Energy (ticker: ORRON), which is expected to occur on July 1, 2022 .

Forecast for the second half of 2022

GInstructions 2H 20221

net power generation2

150 GWh

operating ceast

MUSD 2

G&A costs3

MUSD 7

investments

MUSD 20

1All figures given in this guide are approximate
2Assuming average meteorological conditions
3Excluding benefits in kind, including MUSD 4 for legal expenses in Sudan

Fully funded with up to MUSD 180 financially capacity for acquisitions
Orrön Energy will have MUSD 130 in cash and no debt to commence on July 1, 2022, which will more than cover the expected future capital cost of around MUSD 100 for the Karskruv project. The Company intends to set up credit facilities that could add MUSD 100-150 in additional capacity, providing up to MUSD 180 in liquidity for acquisitions.

power generation and Ooperation ceast
Net electricity generation for the second half of 2022, assuming average meteorological conditions, is estimated at approximately 150 gigawatt hours (“GWh”), increasing to approximately 600 GWh per year from 2024 when all committed projects are expected to be fully operational. Operating costs are budgeted at around USD 2 million for the second half of 2022 and long-term operating costs from 2024 onwards are expected to remain around EUR 10 per megawatt hour.

capital city eexpenditure
The investment forecast for the second half of 2022 is around MUSD 20 and mainly relates to the Karskruv wind farm project in Sweden. Karskruv is expected to be operational by the end of 2023 and will contribute 290 GWh to Orrön Energy’s annual net electricity generation. As the property is in the SE4 price region in southern Sweden, it makes an important contribution to the company’s growth plans.

G&A and legal expenses in Sudan
General and administrative expenses are expected to be around 3MUSD for the second half of 2022, excluding non-cash items. The management team has been largely acquired from Lundin Energy and is positioned to steer future growth and pursue M&A opportunities from the outset.

The Sudanese legal case remains with Orron Energy and the company denies any allegations of wrongdoing by any of its representatives and will continue to vigorously defend itself. Legal costs related to defending the Company and its representatives are expected to be approximately MUSD 4 in the second half of 2022.

Webcast Presentation
Today at 17:00 CEST, a webcast presentation will take place where incoming CEO Daniel Fitzgerald and incoming CFO Espen Hennie will provide guidance and a corporate overview for Orrön Energy, followed by a question and answer session. Registration for the webcast presentation is possible under the following link:
https://us06web.zoom.us/webinar/register/WN_v-UIlEy_RTKP-wDA9RezHw

For more information please contact:

Edward Westrop
VP Investor Relations and Communications
Phone: +41 22 595 10 14
[email protected]

Robert Ericson
Director of Media and Corporate Affairs
Phone: +46 701 11 26 15
[email protected]

Lundin Energy is an experienced Nordic oil and gas company that explores, develops and produces resources economically, efficiently and responsibly. We are focused on creating value for our shareholders and other stakeholders through three strategic pillars: resilience, sustainability and growth. Our high quality, low cost assets make us resilient to oil price volatility and our organic growth strategy combined with our sustainable approach and commitment to decarbonization solidifies our leadership in a lower carbon energy future. (Nasdaq Stockholm: LUNE). For more information please visit us at www.lundin-energy.com or download our app www.myirapp.com/lundin

Forward-Looking Statements

Certain statements and information made herein constitute “forward-looking information” (within the meaning of applicable securities laws). Such statements and information (collectively, “forward-looking statements”) address future events, including Lundin Energy’s future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements regarding estimates of reserves and/or resources, future production levels, future capital expenditures and their association with exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources is based on projections of future results, estimates of amounts not yet determined and assumptions made by management.

All statements other than statements of historical fact may be forward-looking statements. Statements regarding proven and probable reserves and resource estimates may also be considered forward-looking statements and reflect conclusions based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions regarding any prediction, expectation, belief, plan, projection, objective, assumption or future event or performance (often, but not always, using words or phrases such as “aim”, “anticipate” , “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “forecast”, “predict”, “potential”, “target”, “intend”, “could”, ” “Could”, “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 could cause actual results or events to differ materially from those anticipated in such forward-looking statements. There can be no assurance 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 of the date of the information and Lundin Energy does not intend and assumes no obligation to update these forward-looking statements, except as required by applicable law. These forward-looking statements involve risks and uncertainties related to, among other things, operational risks (including exploration and development risks), production costs, availability of drilling equipment, dependency on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risks 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 above list of risk factors should not be considered exhaustive. Actual results could 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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