Update on fourth quarter 2021 financial results and webcast details for the presentation on 1 February 2022 - Seite 2

Net debt and foreign exchange loss
The net debt position of Lundin Energy at 31 December 2021, amounted to USD 2.7 billion, resulting in available liquidity of USD 2.0 billion within its existing credit facility and cash balances held.

Lundin Energy will recognise a net foreign exchange loss of approximately MUSD 84 for the fourth quarter of 2021. The Norwegian Krone was stable against the US Dollar and the Euro weakened by approximately two percent against the US Dollar during the fourth quarter of 2021. The foreign exchange loss is largely non-cash and mainly relates to the revaluation of loan balances at the prevailing exchange rates at the balance sheet date.

Hedging effectiveness
As a result of the AkerBP transaction, part of the outstanding foreign currency contracts and interest rate swap contracts are no longer considered as effective hedges under hedge effectiveness testing. The mark-to-market fair value of these ineffective contracts will be recognized as a non-cash item in the income statement for discontinued operations during the fourth quarter of 2021.

Change in inventory and under/overlift balances
Lundin Energy recognises income based on its sold volume (sales method). Consequently, changes in inventory and under/overlift balances are reported as an adjustment to cost valued at production cost, including depletion. During the fourth quarter of 2021, Lundin Energy was overlifted by 4.5 Mboepd.

Revenue from the crude oil sales from third parties
Lundin Energy markets its own crude oil production and at times markets crude oil from third parties. For the fourth quarter 2021, revenue from the sale of crude oil from third parties amounted to MUSD 72.8 offset by the purchase of crude oil from third parties of MUSD 72.5, resulting in a gross profit of MUSD 0.3 on third party activities for the fourth quarter 2021. The third party crude oil sales and purchase will be reported under discontinued operations.

2021 year end results and 2022 business update
Lundin Energy’s financial report for the fourth quarter 2021, will be published on Tuesday, 1 February 2022 at 07:30 CET.

As a result of the announcement on 21 December 2021, in relation to the proposed transaction with Aker BP, Lundin Energy will no longer be hosting a 2022 Capital Markets presentation, instead the management team will present the financial results for the full year 2021 and a 2022 business update via a webcast at 14.00 CET on the 1 February 2022. Please follow the event live at www.lundin-energy.com or dial in using the following telephone numbers with the pin code shown below: