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Investing.com - Vår Energi ASA (OSE:VAR) on Tuesday reported solid third quarter 2025 results, with the company achieving its production milestones ahead of schedule and confirming its full-year dividend guidance of $1.2 billion for both 2025 and 2026.
The Norwegian oil and gas producer posted third quarter net income of $152 million, missing analyst consensus of $179 million by 15% due to higher taxes. However, the company delivered strong operational performance with significant cash flow from operations of $1.2 billion and reduced net debt.
Vår Energi has successfully brought seven out of nine planned growth projects online in 2025, including Johan Castberg and the Jotun FPSO at the Balder field, both now producing at plateau levels.
The company expects fourth quarter production to average approximately 430,000 barrels of oil equivalent per day (kboepd), putting it on track to meet the mid-point of its full-year guidance range of 330,000 to 360,000 kboepd.
"We are pleased to see strong results for the quarter. Our company is de-risked and has never been in a stronger position to continue to deliver high value and attractive shareholder returns," said Nick Walker, CEO of Vår Energi.
The company maintained its quarterly dividend at $300 million (NOK 1.211 per share), which will be distributed on November 25, subject to approval. This supports the company’s attractive 15% dividend yield.
Unit production costs reached $10.6 per barrel of oil equivalent in the quarter, with expectations of costs around $10 per barrel in the fourth quarter. The company also benefited from strong gas prices, with 18% of third quarter gas volumes sold at $90 per barrel equivalent.
Looking ahead, Vår Energi expects to sanction ten projects in 2025, with four already moving forward. The company aims to sustain production at 350,000 to 400,000 kboepd through 2030 and beyond, supported by its portfolio of approximately 30 early phase projects.
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