Vår Energi reports record financial results in the second quarter 2026 and announces a combination with BlueNord, building the largest independent producer of oil and gas in Europe.
On track to meet full year production guidance
- Strong performance on operated assets with 94% production efficiency year-to-date
- Higher production in second half 2026 with new projects and wells onstream
Record financial results
- Significant CFFO post tax of USD 2.1 billion in the quarter
- Reduced net debt to USD 3.4 billion and leverage ratio to 0.4x
- High available liquidity of USD 5.3 billion?
- Successful issuance of EUR 750 million hybrid bond
- Assigned Fitch rating BBB with stable outlook
Unlocking long-term value
- Vår Energi to combine with BlueNord, increasing production, cash generation and dividend capacity
- Two project sanctions developing around 110 mmboe in net 2P reserves
- Breidablikk field reserves increased by 50% since PDO(1)
- Active portfolio management to unlock value creation and extend field life
Delivering long term attractive returns
- Increased Q2 dividend and Q3 dividend guidance of USD 350 million(2)
- Long term dividend policy of 25-30% of CFFO after tax over the cycles
'We are pleased to report record financial results in the second quarter of 2026, supported by operational delivery as planned and high realized prices. We are on track to meet full-year production guidance, with higher production expected in the second half as new projects and wells come on stream.
With significant cash flow from operations of USD 2.1 billion post tax in the quarter, the Company continues to build resilience and flexibility, with reduced debt and high available liquidity.
We continue driving strong momentum across Vår Energi and are excited about the Company’s outlook. With the sanctioning of key projects in the Balder and Gjøa areas, creating significant value, we now have 16 projects in execution and a further 30 projects being matured towards development. We have also actively optimised our NCS portfolio through a series of transactions, unlocking value creation and extending field life.
Today we are excited to announce that Vår Energi and BlueNord have agreed a combination of its businesses, creating the largest independent producer of oil and gas in Europe, with a long-term production target of around 450 thousand barrels of oil equivalent per day and reinforcing our role as a reliable and secure supplier of energy to Europe.
Together, we are creating a stronger, more diversified company with increased scale, resilience and cash generation. The combination increases production, reserves and resources, underpinning our ability to deliver long-term value to our shareholders.
As a result of the expected value creation, the Company is increasing shareholder distributions to USD 350 million for the second quarter of 2026. Dividend guidance for the third quarter of 2026 is also USD 350 million, assuming completion of the transaction. We remain committed to our long term dividend policy of 25 to 30% of cash flow from operations after tax over the cycles, ' said Nick Walker, the CEO of Vår Energi.
- Plan for development and operation (PDO)
- Each subject to 31.05.26 audited interim balance sheet with sufficient free equity and general meeting approval of dividend. The Q2 2026 dividend will be paid exclusively to existing Vår Energi shareholders. Vår Energi also intends to distribute a dividend of USD 350 million for Q3 2026 to the shareholders of the combined company. Assuming completion of the transaction by the effective date for the Q3 dividend. Should the transaction complete after the record date for the Q3 dividend, the cash consideration payable to BlueNord shareholders will be adjusted to compensate for the value of the Q3 distribution and any potential further distribution prior to closing.
Source: Vår Energi
