Posted by OilVoice Press - OilVoice
For the second quarter 2018, Lundin Petroleum AB (Lundin Petroleum) will expense pre-tax exploration costs of approximately MUSD 6, recognise a net foreign exchange loss of approximately MUSD 153 and realise a gross profit from marketing third party crude oil of MUSD 0.5.
The profitability for the second quarter 2018 will be impacted by certain expensed exploration costs as well as a net foreign currency exchange loss mainly related to the revaluation of loan balances. These items are largely non-cash and will have no impact on operating cash flow or EBITDA.
For the second quarter 2018, Lundin Petroleum will incur pre-tax exploration costs of approximately MUSD 6 which will be charged to the income statement and offset by a tax credit of approximately MUSD 5.
Foreign Exchange Loss
Lundin Petroleum will recognise a net foreign exchange loss of approximately MUSD 153 for the second quarter 2018. The Norwegian Krone and the Euro weakened against the US Dollar by approximately 5 and 9 percent respectively. The foreign exchange loss mainly relates to the revaluation of loan balances at the prevailing exchange rates at the balance sheet date.
Marketing of Third Party Crude Oil
In addition to marketing its own production, Lundin Petroleum at times markets crude oil from third parties. For the second quarter 2018, revenue from the sale of crude oil from third parties amounted to MUSD 133.1 offset by the purchase of crude oil from third parties of MUSD 132.6. This will result in a gross profit on third party activities of MUSD 0.5 for the second quarter 2018.
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