Sandnes, Norway, 11 July 2025: Vår Energi ASA (OSE: VAR, the "Company") will
publish its financial report for the second quarter 2025 on Tuesday 22 July.
Today, the Company provides an update on production, sales volumes and other
relevant items.
Vår Energi's net production of oil, liquids and natural gas averaged 288 kboepd
in the second quarter 2025, an increase of 6% from the previous quarter.
Production in the first half of the year averaged 280 kboepd, and was around the
bottom of the expected range, mainly due to the later start-up and slower ramp
-up to plateau at Johan Castberg than initially planned. With the main new
project start-up's achieved the Company is on track to deliver full year 2025
production in the middle of the guided range of 330 to 360 kboepd. Fourth
quarter 2025 production is expected to be around 430 kboepd.
The production split in the second quarter was 68% oil and NGLs (liquids) and
32% gas. Total volumes produced were 26.2 mmboe, whereas volumes sold in the
quarter amounted to 26.0 mmboe. Vår Energi obtained a strong average realised
price (volume-weighted) of USD 70 per boe in the quarter. The realised crude
price was USD 68 per barrel. The realised gas price of USD 79 per boe is a
result of fixed price contracts and flexible gas sales agreements, allowing for
optimisation of indices. The fixed price contracts represented 25% of second
quarter gas volumes sold at an average price of USD 92 per boe, substantially
above the spot market reference price. For third quarter fixed price gas
contracts represent 18% of volumes at USD 90 per boe.
[]
Production (kboepd)[1] Q2 2025 Q1 2025 Q2 2024 1H 2025 1H 2024
Crude oil 180 160 162 170 166
Gas 92 96 103 94 107
NGL 16 16 22 16 20
Total 288 272 287 280 293
Realised prices (USD/boe)
Crude oil price 68 76 85 72 85
Gas price 79 87 70 83 68
NGL price 43 54 44 47 47
Average (volume weighted) 70 79 77 74 76
Sales volumes (mmboe)
Crude oil 17.1 15.0 15.1 32.1 29.6
Gas 7.7 8.0 7.9 15.8 17.1
NGL 1.2 0.7 2.1 1.9 4.3
Total 26.0 23.8 25.1 49.8 51.0
Total production (mmboe) 26.2 24.5 26.1 50.7 53.3
¹ Produced figures are including fuel gas not for sale
Other items
Vår Energi's functional currency is NOK, whilst interest bearing loans are in
USD and EUR. In the second quarter of 2025 the Company incurred a net exchange
rate gain of USD 80 million.
As a result of the company history of mergers and acquisitions, Vår Energi has
several assets booked at fair value in the balance sheet. Changes in
assumptions, cost and production profiles can result in impairments and
reversals.
Non-cash impairment reversals in the second quarter are estimated to be around
USD 510 million pre-tax (around USD 112 million post tax) related to a reversal
on the Balder field triggered by changes in reserves. In addition, there are
impairments of technical goodwill on the Njord, Gjøa and Snøhvit areas of around
USD 70 million (around USD 70 million post tax).
As previously communicated, the following items impacted the free cash flow in
the second quarter: cash tax payments totaling NOK 5.2 billion (USD 504 million)
and a dividend payment for the first quarter of USD 300 million, paid in May.
The information above is based on a preliminary assessment of the Company's
second quarter 2025 financial results and may be subject to change until the
financial statements have been finally approved and published by the Company.
Second quarter webcast and conference call
Vår Energi will release its quarterly results on 22 July at 07:00 CEST. A
webcast and conference call followed by Q&A will be held at 10:00 CEST, 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
Contact
Investor relations
Ida Marie Fjellheim, VP Investor Relations
+47 90509291
ida.fjellheim@varenergi.no
Media relations
Andreas Wulff, VP Public Affairs
+47 92616759
andreas.wulff@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.
This information is subject to disclosure requirements pursuant to section 5-12
of the Norwegian Securities Trading Act