Swedish exploration and production firm Lundin Petroleum has announced it will start paying dividends after reporting record cash flows in 2017 due to a recovery in the price of oil.
The company, which operates heavily in Norway, proposes to pay 4 Swedish crowns per share for the 2017 fiscal year, totalling around $175million.
It hopes the payout for next year will reach $350million.
The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) were $429.8million, compared to $276.7million the previous year.
Lundin’s capital sending is set to decrease after investments last year in the Johan Sverdrup field in Norway – which it has a 22.6% stake in.
Alex Schneiter, President and CEO of Lundin Petroleum, said: “The future looks promising for Lundin Petroleum and we have some very exciting years ahead of us, increasing our production significantly by the time Johan Sverdrup comes onstream.
“By maintaining very low cash operating costs we will be able to deliver increased free cash flows, be very active on the organic growth front and deliver sustainable dividends, thereby continuing to create long-term value for our shareholders.”