Vår Energi (VAR) investor relations material

Executive summary

• Q3 production averaged 369 kboepd amid operational disruptions; higher Q4 output is expected as turnarounds conclude and projects and wells ramp up.

• Post-tax CFFO was $1.518bn and free cash flow was $758m; net debt was $3.110bn and available liquidity reached a record $7.501bn.

• Q3 and Q4 dividends were guided at $400m each; the BlueNord combination is targeted to close around year-end 2026, subject to approvals.

Financial highlights

• Petroleum revenues were $3.566bn, up 69% YoY; sales volumes were 34.8 mmboe and average realised price was $103/boe.

• Total income was $3.567bn, EBIT $2.214bn, profit before tax $2.094bn and net income $304m; EPS was $0.11 versus $0.05 in Q3 2025.

• Post-tax CFFO was $1.518bn and free cash flow $758m; lower operating cash flow and higher capex reduced FCF QoQ.

• Income tax expense was $1.790bn; the 85% effective tax rate exceeded the 78% marginal rate, mainly due to FX effects.

• Q3 capex, including exploration, was $725m; CFFO-to-capex coverage was 2.1x, and YTD capex was $1.923bn.

Outlook and guidance

• FY2026 production guidance is ~390 kboepd, revised from the original 390–410 kboepd range; first-nine-month production averaged 383 kboepd.

• Q4 production is expected to rise as Balder Phase VI, new projects and infill wells ramp up; ~410 kboepd is needed in Q4 to reach the annual target.

• FY2026 production-cost guidance increased to ~$11/boe; development capex remains $2.5–2.7bn, exploration spend is $250–300m and abandonment spend is ~$200m.

• Q3 and Q4 dividends are guided at $400m each, including $50m extraordinary per quarter; FY2026 distributions are expected to reach $1.45bn versus $1.2bn in 2025.

• Combined long-term production target is ~450 kboepd; projected free cash flow is $8–13bn over 2026–2032, with a ~$40/bbl breakeven.