Vår Energi will publish its financial report for the first quarter 2025 on Wednesday 23 April. Today, the Company provides an update on production, sales volumes and other relevant items.
Vår Energi’s net production of oil, liquids and natural gas averaged 272 kboepd in the first quarter of 2025, a decrease of 2% from the fourth quarter and a decrease of 9% compared to the first quarter of 2024. Vår Energi expects to reach the mid-point of the production guidance of 330-360 kboepd for the full-year 2025, dependent on start-up timing and ramp-up profile of new fields of which two have started up in the first quarter. The Company is also on track to meet the target of producing above 400 kboepd in the fourth quarter.
The production split in the first quarter was 65% oil and NGLs (liquids) and 35% gas. Total volumes produced were 24.5 mmboe, whereas volumes sold in the quarter amounted to 23.8 mmboe. Vår Energi obtained a strong average realised price (volume-weighted) of USD 79 per boe in the quarter. The realised crude price was USD 76 per barrel. The realised gas price of USD 87 per boe is close to the average spot market reference price. For the second quarter, fixed price gas contracts represent 24% of volumes at approximately USD 89 per boe and for third quarter fixed price gas contracts represent 20% of volumes at approximately USD 84 per boe.
| Production (kboepd)1 | Q1 2025 | Q4 2024 | Q1 2024 | YTD 2025 | YTD 2024 | |
| Crude oil | 160 | 159 | 169 | 160 | 169 | |
| Gas | 96 | 101 | 111 | 96 | 111 | |
| NGL | 16 | 18 | 19 | 16 | 19 | |
| Total | 272 | 278 | 299 | 272 | 299 | |
| Realised prices (USD/boe) | ||||||
| Crude oil price | 76 | 73 | 84 | 76 | 84 | |
| Gas price | 87 | 78 | 67 | 87 | 67 | |
| NGL price | 54 | 48 | 51 | 54 | 51 | |
| Average (volume weighted) | 79 | 73 | 75 | 79 | 75 | |
| Sales volumes (mmboe) | ||||||
| Crude oil | 15.0 | 12.4 | 14.5 | 15.0 | 14.5 | |
| Gas | 8.0 | 8.6 | 9.2 | 8.0 | 9.2 | |
| NGL | 0.7 | 1.7 | 2.2 | 0.7 | 2.2 | |
| Total | 23.7 | 22.7 | 25.9 | 23.8 | 25.9 | |
| Total production (mmboe) | 24.5 | 25.6 | 27.2 | 24.5 | 27.2 | |
¹ Produced figures are including fuel gas not for sale
Other items
Vår Energi’s functional currency is NOK, whilst interest bearing loans are in USD and EUR. The strengthening of the NOK in the first quarter of 2025 led to a net unrealised (non-cash) exchange rate gain of approximately USD 340 million.
As a result of the Company history of mergers and acquisitions, Vår Energi has several assets valued at fair value in the balance sheet. Changes in assumptions, cost and production profiles can result in impairments and reversals.
A non-cash impairment on the Njord Area in the first quarter is estimated to be around USD 23 million (around USD 23 million post tax) due to impairment of technical goodwill.
As previously communicated, the following items impacted the free cash flow in the first quarter: one cash tax payment totaling approximately NOK 2.4 billion (USD 212 million) and a dividend payment for the fourth quarter of 2024 of USD 270 million, paid in February.
The information above is based on a preliminary assessment of the Company's first quarter 2025 financial results and may be subject to change until the financial statements have been finally approved and published by the Company.
Source: Vår Energi
