Vår Energi reports strong third quarter results with transformational growth delivered ahead of schedule and a pipeline of new projects being progressed for long-term value creation.
Production milestones met ahead of schedule
- Average fourth quarter production expected ~430 kboepd
- Jotun FPSO reached peak production in September
- Adding ~180 kboepd at peak from new projects in 2025, 7 out of 9 projects on stream
- Derisked outlook with key projects delivered
Solid financial performance
- Significant cash flow from operations of USD 1.2 billion
- Reduced net debt and USD 3.6 billion of available liquidity
- Unit production cost expected around USD 10 per boe in the fourth quarter of 2025
- 18% of third quarter gas volumes sold at USD 90 per boe
Unlocking long-term future value creation
- Expected to sanction ten projects in 2025
- Increasing ownership in Ekofisk Previously Produced Fields project adding high value barrels
Delivering predictable and attractive dividends
- Third quarter dividend of USD 300 million (NOK 1.211 per share) will be distributed 25 November(1)
- Full year dividend guidance for 2025 and 2026 of USD 1.2 billion
'We are pleased to see strong results for the quarter. Seven of the nine growth projects planned for start-up in 2025 are on stream, including Johan Castberg and the Jotun FPSO at the Balder field, with both producing at plateau. Our company is de-risked and has never been in a stronger position to continue to deliver high value and attractive shareholder returns.
'With the strong ramp up of our new projects we expect to produce an average of approximately 430 thousand barrels of oil per day (kboepd) in the fourth quarter and we're on track to meet around the mid-point of the full year guidance range of 330 to 360 kboepd.
'We are on target to sustain production at 350 to 400 kboepd towards 2030 and beyond. This will be delivered through our portfolio of around 30 early phase projects, backed by already discovered resources that are being moved towards development sanction at pace. We expect to sanction 10 projects in 2025, of which 4 are already moving forward, with average break evens below 35 USD/boe. Furthermore, the recent acquisition of TotalEnergies' interest in the Ekofisk Previously Produced Fields project adds high value barrels to our portfolio at an attractive price.
'The Company demonstrates strong resilience, driven by solid financial results, reduced net debt and efficient operating cost of 10.6 USD/boe in the quarter.
'On the back of this strong performance Vår Energi continues to provide attractive shareholder distributions. We confirm a dividend of USD 300 million for the third quarter and maintain our total dividend distribution guidance of USD 1.2 billion for the full year 2025 and 2026' says Nick Walker the CEO of Vår Energi.
(1) The dividend is subject to EGM approval 11 November Webcast and conference call
Original announcement link
Source: Vår Energi
