* EBITDA $171.5 mln vs $182 mln forecast
* Brynhild start up seen in Q4
* Maintains production guidance
OSLO, Aug 6 Swedish oil producer Lundin
Petroleum reported second-quarter earnings below
expectations on Wednesday and warned that a major project in
Norway was at risk of a further delay.
Lundin, which produces oil and gas in Norway and south east
Asia, said its earnings before interest, taxes, depreciation and
amortisation (EBITDA) fell 29 percent to $171.5 million, short
of expectations for $182 million, as its fields in the North Sea
continue to mature and production declines.
The firm also warned that the start up of its Brynhild
project in Norway, already several times delayed, could slip
back further because of likely delays at a Shell
project, which Lundin will to tie the field into.
Start-up is now seen in the fourth quarter instead of
September, around a year behind the original schedule, Lundin
The company said it remains on track to produce between
24,000 and 29,000 barrels of oil equivalents per day (boepd) in
2014 and around 50,000 boepd in 2015 as new fields come
Lundin also said that work on the $20 billion Johan Sverdrup
field, Europe's biggest oil discovery in decades, was
progressing on schedule and Statoil, the operator,
plans to submit a development plan in early 2015.
Sverdrup, which will produce between 550,000 and 650,000
boepd after starting up in late 2019, has been Lundin's most
lucrative find, which has pushed the valuation on its stock
Lundin is one of the most highly-valued shares among
European oil firms, trading at 4.5 times its book value, more
than twice the average of its peers, reflecting the potential of
But the stock has underperformed its peers recently, falling
3.1 percent since the start of the year against a 5.5 percent
rise in the European oil and gas index, reflecting
disappointing exploration wells and the Brynhild delay.
In the second quarter, the firm produced 27,500 barrels of
oil equivalents per day (boepd) in line with expectations for
27,462 boepd in a Reuters poll of analysts
(Reporting by Balazs Koranyi, editing by Terje Solsvik. Editing
by Jane Merriman)