Vår Energi is on track for growth and value creation and delivers strong financial results in a quarter with good operational performance and high realised prices.
Nick Walker, CEO of Vår Energi says:
'As one of the fastest growing E&P companies in the world, we are on track to nearly double production to around 400 thousand barrels of oil equivalent per day by end 2025. We are pleased to see that the quarter delivered solid operational performance within guidance. Strong realised prices and financial results underpin our commitment to provide stable and predictable dividends to our shareholders, and our growth trajectory will give increased capacity to sustain this. Vår Energi’s outstanding growth outlook is backed by nine high-quality development projects and the acquisition of Neptune Energy Norge which was completed on 31 January 2024. The deal marks a key milestone to deliver strong value accretive growth.'
Strong financial results
- Total income in the quarter was USD 1 699 million, an increase of 5% from the third quarter
- Achieved realised price of USD 84 per boe in the quarter with gas price realisation USD 13 per boe above spot market
- Continued strong financial position with USD 3.7 billion in available liquidity and a leverage ratio of 0.5x
- Cash flow from operations (CFFO) was USD 857 million
Attractive and predictable shareholder distribution
- Dividend of USD 270 million (NOK 1.136 per share) for the fourth quarter will be distributed on 27 February
- Dividend guidance of USD 270 million for the first quarter of 2024, aiming for a dividend distribution of approximately 30% of CFFO after taxfor the full year
Good operational performance
- Production of 225 kboepd in the quarter, up 7% from the third quarter
- Full year production of 213 kboepd and December exit rate of 233 kboepd within guidance
- Unit production cost below guidance with USD 14.1 per boe for the full year and USD 13.9 per boe in the quarter
On track for growth and value creation
- Neptune Energy Norge acquisition closed 31 January 2024
- With Neptune assets total combined reserves plus resources of approximately 2 billion boe1
- Breidablikk and Tommeliten Alpha started up ahead of schedule and on budget in October 2023
- Balder X project making solid progress towards completion with targeted first oil moved to Q4 2024
- Johan Castberg project is on track for targeted first oil in Q4 2024
Safety and ESG
- Continued safe operations with no serious incidentsfor the full year
- Vår Energi included in “Sustainalytics’ 2024 ESG top-rated companies list”
(1) As per Annual Statement of Reserves 2023, Proved plus Probable (2P) Reserves and 2C Contingent Resources
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Source: Vår Energi
