Sandnes, Norway, 22 July 2025: Vår Energi ASA (OSE: VAR) reports strong results with key growth projects delivered as expected and a pipeline of quality new projects being moved forward to sustain long term resilience.
Production on-track for the mid-point of full year guidance
- Jotun FPSO successfully on stream, peak production expected during September
- Johan Castberg producing at plateau
- Current production above 350 kboepd
- Major turnarounds completed by end July
Strengthened financial position
- Unit production cost on track to meet approximately USD 10 per boe by the fourth quarter
- 25% of gas volumes locked in at USD 92 per boe
- Successful issuance of USD 1.5 billion senior notes
- Increased liquidity through refinancing of credit facilities
- Utilising flexibility to reduce spend by around USD 500 million in 2025/26
Demonstrating growth and unlocking future value
- Adding approximately 180 kboepd at peak from new fields in 2025
- Progressing project portfolio with four project sanctions year to date
- Exploration successes adding high value barrels
Delivering predictable and attractive dividends
- Second quarter dividend of USD 300 million (NOK 1.222 per share) will be distributed 26 August1
- Full year dividend guidance for 2025 and 2026 of USD 1.2 billion
“We are pleased to report strong results for the quarter. Our key growth projects have been delivered as expected, with four of the nine projects to come on stream this year already online. Johan Castberg is producing at full capacity, the Jotun FPSO at the Balder field and Halten East are ramping up and Ormen Lange Phase III has started ahead of plan. With current production above 350 thousand barrels of oil equivalent per day (kboepd), we expect to reach about 430 kboepd in the fourth quarter, delivering on our plans for transformative growth in 2025.
The Company is on track to sustain production at 350-400 kboepd towards 2030, which will be achieved by developing our portfolio of around 30 early phase projects. Over 10 of these projects are set to be sanctioned this year, with four already sanctioned in the first half, including the Balder Phase VI and Fram Sør subsea tie-backs. These projects are being moved forward at speed to deliver high value barrels with strong economics and average breakeven below USD 35 per barrel.
Our exploration program continues to deliver successful results, with three commercial discoveries so far this year, continuing the Company’s leading exploration track record on the Norwegian Continental Shelf.
During the first half of 2025, the Company’s financial position has been strengthened through the successful refinancing of credit facilities and issuance of senior notes, totalling USD 5.2 billion, reducing cost of debt and providing significant available liquidity.
To further improve the resilience and competitiveness of our business in a volatile market, measures are taken to reduce spend by USD 500 million for 2025 and 2026, while maintaining the long-term production outlook.
On the back of this strong performance, the Company continues to provide attractive and predictable shareholder distributions. We confirm a dividend of USD 300 million for the second quarter and guide a total dividend distribution of USD 1.2 billon for the full year 2025 and USD 1.2 billion for the full year 2026” says Nick Walker the CEO of Vår Energi.
1..The dividend is subject to EGM approval 12 August
Webcast and conference call
The company will today hold a webcast and conference call followed by Q&A at 10:00 CET hosted by CEO Nick Walker and CFO Carlo Santopadre. You can follow the webcast with supporting slides, available on:
https://events.webcast.no/vaar-energi/quarterly-reports/18mFAGS5mbXH1ta6dCzD
The report, presentation and webcast will be available at www.varenergi.no.
About Vår Energi
Vår Energi is a leading independent upstream oil and gas company on the Norwegian continental shelf (NCS). We are committed to deliver a better future through responsible value driven growth based on over 50 years of NCS operations, a robust and diversified asset portfolio with ongoing development projects, and a strong exploration track record.
Safe and responsible operations are at the core of our strategy. Our ambition is to be the safest operator on the NCS, and to become carbon neutral in our net equity operational emissions by 2030.
Vår Energi has around 1400 employees and equity stakes in 42 producing fields. We have our headquarters outside Stavanger, Norway, with offices in Oslo, Hammerfest and Florø. To learn more, please visit varenergi.no.
Contact
Investor relations
Ida Marie Fjellheim, VP Investor Relations
+47 905 09 291
ida.fjellheim@varenergi.no
Media relations
Andreas Wulff, VP Public Affairs
+47 926 16 759
andreas.wulff@varenergi.no
This announcement may include projections and other “forward-looking” statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of Vår Energi AS (“Var Energi”) about further events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections. Var Energi undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement.
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange release was published by Ida Fjellheim, Head of Investor Relations at Vår Energi ASA, on 22 July 2025 at 07:00 CEST.