Vår Energi, a leading independent upstream oil and gas company on the Norwegian continental shelf (NCS), reports strong results in line with expectations and is on track to deliver transformative growth in 2025 while maintaining resilience and flexibility in a volatile market.
Operational performance in-line with expectations
- Production of 272 kboepd in the first quarter of 2025, in line with expectations
- Successful start-ups of Halten East and Johan Castberg
- Continued strong performance on operated assets ahead of target
Strong financial performance
- Strong cash flow from operations post tax of USD 1.3 billion in the quarter
- Unit production cost of USD 11.6 per boe, within guidance
- Locked in ~20% of gas volumes at USD 90 per boe in the second and third quarters
- Reduced net debt, with leverage ratio of 0.8x
- Successful issuance of EUR 1 billion senior notes, 4x times oversubscribed
- Resilience with low free cashflow breakeven and capital flexibility with around 70% of future capex uncommitted
Delivering on growth towards end-2025 and unlocking future value
- Adding approximately 180 kboepd at peak from nine project start-ups towards the fourth quarter 2025
- Balder Jotun FPSO moored at field location and Balder X on track for end second quarter 2025 start-up
- Unlocking significant potential in the Goliat area with Zagato discovery, targeting more than 200 mmboe in discovered and prospective gross resources
Continued attractive and predictable dividends
- Dividend of USD 300 million (NOK 1.245 per share) for the first quarter will be distributed 8 May
- Dividend guidance of USD 300 million for the second quarter of 2025, with a dividend distribution of 25-30% of CFFO after tax for the full year
'We are pleased to deliver strong results in line with expectations for the quarter. The Halten East and Johan Castberg projects came on stream and the Jotun FPSO is expected to start production by end of the second quarter. The Company is set for transformational growth in 2025, adding around 180 thousand barrels of oil equivalent (kboepd) from new projects and is on track deliver over 400 kboepd by the fourth quarter.
'Our exploration success continues, highlighted by the recent Zagato discovery, the third in a row near the Goliat FPSO, increasing the total discovered and prospective gross recoverable resources on the Goliat ridge to over 200 million barrels (mmboe).
'In the current uncertain market environment our business remains resilient, with low free cash flow break-even and a highly flexible investment program of which 70% is uncommitted. Our investment grade balance sheet provides significant available liquidity, underscored by the recent issuance of EUR 1 billion of senior notes, four times oversubscribed.
'On the back of strong operational and financial results, we confirm an attractive dividend distribution of USD 300 million for the first quarter, while maintaining our distribution policy of 25-30% of CFFO after tax for the full year.
'We are confident that the long term fundamental role of oil and gas remains unchanged and Vår Energi has the flexibility and resilience to navigate through the cycles,' says Nick Walker the CEO of Vår Energi.
Source: Vår Energi
