STOCKHOLM, Sweden, Feb. 3 (UPI) -- Swedish energy company Lundin Petroleum reported its worst quarterly results ever, though its president said the market may be approaching bottom.
Lundin reported revenue for the fourth quarter at $135.2 million, against $136 million year-on-year. Full-year 2015 revenue of $569.3 million was lower than the previous year by roughly 27 percent.
"We continue to witness extreme volatility in oil prices with falls to levels not seen in over a decade and it is clear to me that the battle for market share is approaching its final conclusion," Lundin President and CEO Alex Schneiter said in a statement.
Members of the Organization of Petroleum Exporting Countries are defending a robust production policy by stating the 13-member group needs to keep output higher to protect its market share, largely in Asia, on the expectations that demand will return. The policy comes as the United States rivals Saudi Arabia in terms of crude oil production, leading to an oversupplied market and lower crude oil prices.
Crude oil prices are off about 10 percent for the year and down roughly 70 percent from mid-2014 levels above $100 per barrel. Lundin left 2014 with $758.2 million in revenue, 33 percent less than the previous year
Schneiter said cost of operations for Lundin will fall below $10 per barrel, which he said positions his company for a strong rebound once energy sector recovery is realized.
Last month, the company announced spending for exploration and appraisal activity in 2016 would be 64 percent less than last year at $145 million.
Production from two fields off the coast of Norway -- Edvard Grieg and Johan Sverdrup -- should stimulate Lundin's reserve portfolio further. Output for the fourth quarter of 38.3 million barrels of oil equivalent per day was up more than 75 percent from the previous year.
"Our company is in strong health with reserves of close to 700 million boe and a production base that will grow significantly," Schneiter said.