Vår Energi reports strong financial results in the third quarter 2024

Sandnes, Norway, 22 October 2024: Vår Energi ASA (OSE: VAR) Vår Energi reports resilient operational and financial results in line with guidance. The Company is poised for significant production growth over the next three quarters.

Operational performance in-line with expectations

• Production of 281 kboepd in the first nine months of 2024, in line with expectations
• Planned maintenance shutdowns successfully completed
• Continued strong operational performance on operated assets ahead of target

Strong financial performance

• Continued realised gas price above spot
• Strong cash flow from operations of USD 1 310 million in the quarter
• Full-year unit production cost guidance reduced to less than 13 USD/boe

Growth towards 2025 and unlocking future value

• Adding ~150 kboepd of valuable growth towards Q3 2025
• Johan Castberg anchored at location and on-track for Q4 start-up
• Balder X target Q2 2025 start-up
• Two exploration discoveries in the quarter, yielding 44% success rate year-to-date

Continued attractive and predictable dividends

• Dividend of USD 270 million (NOK 1.180 per share) for the third quarter will be distributed 5 November
• Dividend guidance of USD 270 million for the fourth quarter of 2024, with a dividend distribution of approximately 30% of CFFO after tax for the full year
• Solid balance sheet with reduced leverage ratio to 0.7x

“We are pleased to deliver resilient operational and financial results for the quarter, in line with guidance. Average production of 281 thousand barrels of oil equivalent per day (kboepd) in the first nine months of 2024 is in line with expectations for the period. Full year production guidance range is narrowed to 280-290 kboepd.

We’re showing strong cost discipline, lowering capital spend and production cost guidance for the year, as we enter a more volatile price environment.

As one of the world’s fastest growing E&Ps, the Company is poised for significant production increase over the next three quarters as we bring key development projects online. Johan Castberg is set for the fourth quarter this year, Halten East in the first quarter next year, followed by Balder X in the second quarter, adding around 150 kboepd of new production. Together this sets us on our path to around 400 kboepd by end 2025 and to reduced production costs to around 10 USD/barrel.

Our significant and diverse portfolio provides the foundations to sustain production volumes long term. We’re turning this into value with the recent sanction of the Balder Phase V project, securing 33 million barrels of gross reserves with an attractive breakeven price of 30 USD per barrel. Furthermore, our exploration strategy continues to deliver results, with four discoveries making us the most successful explorer in Norway so far this year.

This is the basis by which we deliver material and sustainable dividends.” says Nick Walker, the CEO of Vår Energi.

Webcast and conference call

The company will today hold a webcast and conference call followed by Q&A at 10:00 CET hosted by CEO Nick Walker and CFO Stefano Pujatti.

You can follow the webcast with supporting slides, available on:
https://events.webcast.no/vaar-energi/quarterly-reports/rcuKmpSizv0pTKIqywej

The report, presentation and webcast will be available at www.varenergi.no.  

About Vår Energi

Vår Energi is a leading independent upstream oil and gas company on the Norwegian continental shelf (NCS). We are committed to deliver a better future through responsible value driven growth based on over 50 years of NCS operations, a robust and diversified asset portfolio with ongoing development projects, and a strong exploration track record. Our ambition is to be the safest operator on the NCS, the partner of choice, an ESG leader with a tangible plan to reduce emissions from our operations by more than 50% within 2030. Vår Energi has around 1400 employees and equity stakes in 43 fields. We have our headquarters outside Stavanger, Norway, with offices in Oslo, Hammerfest and Florø. To learn more, please visit varenergi.no

Contact

Investor relations

Ida Marie Fjellheim, VP Investor Relations

+47 90509291

ida.fjellheim@varenergi.no

Media relations

Andreas Wulff, VP Public Relations

+47 92616759

andreas.wulff@varenergi.no

This announcement may include projections and other “forward-looking” statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of Vår Energi AS (“Var Energi”) about further events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections. Var Energi undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange release was published by Ida Fjellheim, Head of Investor Relations at Vår Energi ASA, on 22 October 2024 at 07:00 CET.