Lundin Petroleum AB Announces Production Results for the Fourth Quarter and Full Year of 2016; Provides Impairment Guidance for the Fourth Quarter of 2016; Provides Earnings Guidance for the Fourth Quarter of 2016
Average production rate for the full year was 72,600 boepd.
The net debt position of the company as at December 31, 2016 amounted to USD 4.1 billion resulting in available liquidity of USD 0.9 billion within its USD 5.0 billion reserve-based lending facility. The pre-tax exploration costs was USD 46 million for the fourth quarter of 2016.
The company expects to incur a non-cash impairment charge in the fourth quarter of 2016 of USD 632 million with a corresponding tax credit of USD 83 million resulting in a negative impact on the fourth quarter net results of USD 549 million.
The company will recognize a net foreign exchange loss of approximately USD 216 million in its income statement for the fourth quarter of 2016. The profitability for the fourth quarter of 2016 will be negatively impacted by certain expensed exploration costs and impairment charges, as well as a foreign currency exchange loss mainly related to the revaluation of loan balances. These items are largely non-cash charges and will have no impact on operating cash flow or EBITDA.