25 October 2022
Vår Energi reports third quarter 2022 results
Vår Energi ASA reported USD 2 526 million in total income for the third quarter of 2022, EBIT was USD 1 454 million and cash flow from operations (CFFO) was USD 1 503 million in the quarter.
The company expects to distribute USD 1.075 billion in dividend for 2022 under current market conditions, paid on a quarterly basis. A dividend of USD 260 million (NOK 1.025 per share) for the second quarter was paid in August and USD 290 million (NOK 1.225 per share) for the third quarter will be distributed in November. The company further plans to distribute a dividend of USD 300 million (NOK ~1.27 per share) for the fourth quarter.
- Safe operations, no serious incidents in the quarter
- Production of 215 kboepd, an increase from 210 kboepd in the second quarter mainly due to reduced maintenance and turnaround activity on partner-operated fields
- Full year 2022 production guidance revised to 220-225 kboepd
- Average weighted realised price of USD 139 per boe in the quarter (oil USD 108 per boe, gas USD 204 per boe)
- Production cost of USD 13.4 per boe, down from USD 14.7 per boe in the previous quarter on increased production and exchange rate effects
- Revised Balder X schedule and investment estimate, other major development projects progressing according to schedule amid continued macro and supply chain uncertainties. Overall capex guidance for 2022 maintained
- Net impairment of USD 573 million in the quarter, after-tax impact of USD 308 million reflected in net income
- USD 5 099 million in available liquidity
- Leverage ratio reduced to 0.2x at the end of September from 0.4x at the end of June due to strong cash flow from operations and increased cash position
- The Board declared dividend of NOK 1.225 per share for the third quarter, totalling USD 290 million, to be distributed on 9 November
Torger Rød the CEO of Vår Energi, said:
Macro complexity and the global security situation influence energy markets with wide-reaching effects, reaffirming the importance of the Norwegian Continental Shelf as a reliable supplier of oil and gas to Europe. Against this backdrop, our focus is on safe, efficient and secure operations, working in close collaboration with our partners and relevant authorities. At the same time, we progress the developments which are set to deliver our longer-term production growth, and while we revised the Balder X schedule and investment estimate in the quarter, we continue to deliver strong cash flow and shareholder distributions in 2022.
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 Torger Rød and CFO Stefano Pujatti. You can follow the webcast with supporting slides, available on: https://streams.eventcdn.net/vaarenergi/2022q3/
To access the conference call, please pre-register at: https://www.netroadshow.com/events/login?show=e3f36eae&confId=43057
You will receive your access details via email.
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. Our ambition is to be the safest operator on the NCS, the partner of choice, an ESG leader and a net-zero producer (Scope 1 and 2) by 2030.
Vår Energi has more than 900 employees and equity stakes in 36 fields producing net 246,000 boe per day in 2021. We have our headquarters outside Stavanger, Norway, with offices in Oslo and Hammerfest.
Ida Marie Fjellheim, Head of Investor Relations
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.