Vår Energi today reports financial results for the fourth quarter and full year 2022. The Company is also hosting its first capital markets update (CMU) to present its strategy for growth and long-term value creation founded on a de-risked path to more than 50% production increase by end-2025, sustained high value generation beyond, ESG leadership and attractive shareholder returns.  

The Company reported USD 2 374 million in total income for the fourth quarter of 2022, bringing total income for the full year 2022 to USD 9 828 million, an increase of 62% from 2021 primarily due to higher oil and gas prices. Profit before taxes was USD 1 793 million in the quarter (+67% compared to last quarter) while USD 5 856 million for the full year compares to USD 2 647 million in 2021.  

Cash flow from operations (CFFO) was USD 443 million in the quarter and USD 5 682 million for the full year. A dividend of USD 290 million (NOK 1.225 per share) for the third quarter was paid in November and USD 300 million (NOK 1.226 per share) for the fourth quarter will be distributed in March. The company further plans to distribute a dividend of USD 270 million for the first quarter 2023. For 2023, Vår Energi plans to distribute dividends of approximately 30% of CFFO after tax.  

Q4 and 2022 highlights 

  • Continued safe operations, no serious incidents in the quarter 
  • Production of 214 kboepd in the fourth quarter, stable from the third quarter, full-year 2022 production of 220 kboepd within the revised guided range 
  • Production guidance for 2023 of 210-230 kboepd 
  • Average weighted realised price of USD 115 per boe in the quarter (oil USD 87 per boe, gas USD 182 per boe) 
  • Fourth quarter and full-year production cost of USD 14.1 per boe and USD 13.5 per boe, respectively, within the guided range for the full year 
  • Full-year 2023 production cost expected at USD 14.5 – 15.5 
  • 2022 exploration success rate of 57%, adding approximately 65 million boe (mmboe) of resources including the Vår Energi-operated Lupa discovery, the largest on the NCS for the year 
  • Project portfolio progressing according to plan, including PDO for the partner-operated Verdande project 
  • Successful issue of USD 2 billion of five- and ten-year bonds in the US debt market in the fourth quarter 
  • Continued strong balance sheet with leverage ratio at 0.3x at year-end 2022 
  • The Board declared dividend of NOK 1.226 per share for the fourth quarter, totalling USD 300 million, to be distributed on 3 March 
  • Total dividend distribution for 2022 of USD 1 075 million 

2023 CMU highlights – growth and value creation 

  • On track for production of above 350 kboepd by end-2025 based on 17 sanctioned projects with the majority well into execution with committed investments, including the key projects Balder X, Johan Castberg and Breidablikk 
  • A long-term ambition of sustaining production and high value creation beyond 2025, supported by operational excellence, a high-value project portfolio, world-class exploration capabilities and value accretive M&A 
  • A clear path to net zero for operated assets by 2030 (scope 1 and 2) 
  • Attractive dividend policy maintained supported by resilient cash flow generation 

 CEO Torger Rød:

Today, Vår Energi celebrates one year as a listed company. In that brief period, we have delivered strong cash generation and attractive dividends. We have also progressed our development projects and are firmly on track for the end-2025 production and cost targets. Our exploration team yet again delivered world-class results and we are proud to be the operator of the largest discovery on the NCS in 2022. We expect a continued high activity level for 2023 as we work to realise our full potential and deliver more than 50% production growth towards end-2025 and lay the foundation for sustained high value creation beyond that.

Webcast and conference call today 10:00 CET


Investor relations
Ida Marie Fjellheim, VP Investor Relations
+47 90509291

Media relations 
Andreas Wulff, VP Communications
+47 92616759