Lundin Petroleum has posted a loss in its second quarter 2016 revenues caused by foreign exchange losses.
The Swedish independent said despite its production levels increasing, foreign exchange losses offset the gain made by the company.
The loss of $48.3million was compared to a profit of $59.9million the same time last year.
Production averaged 63,900 barrels of oil equivalent per day during the period, excedding its mid-point guidance by about 15%, compared to 28.9 barrels oil equivalent per day in 2015.
Chief executive Alex Schneiter said: “I am very pleased with our second quarter operational performance with production about 15 percent ahead of mid-point guidance and corresponding cash operating costs at USD 8.85 per barrel.
“These strong results are led by the Edvard Grieg field which continues to perform ahead of expectations with high uptime and good reservoir performance. Our producing assets at the Alvheim hub as well as our other areas of operations have also contributed positively to our operational performance.
“Whilst we continue to witness significant oil price volatility, we are beginning to see encouraging signs of a market rebalancing between supply and demand as a consequence of the significant scaling back of industry investments and project deferrals as well as oil demand continuing to grow at a healthy pace.
“This has led to a strengthening in oil prices from the lows in January of below USD 30 per barrel to current levels of close to USD 45 per barrel. Nevertheless, it is my view that we must
be prepared to live with oil prices remaining lower for longer and retain our focus on optimising our costs and improving our operational efficiency to maintain a strong balance sheet and deliver significant sustainable value growth.”
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