Vår Energi (VAR) Q3 2025 earnings summary

Executive summary

• Achieved transformational growth ahead of schedule, with Q3 2025 production at 370,000 boe/d and Q4 guidance at ~430,000 boe/d, driven by new project ramp-ups and strong operational efficiency.

• Seven of nine new projects are on stream, including Jotun FPSO and Johan Castberg at plateau, with the remainder expected by year-end.

• Jotun FPSO reached peak production ahead of plan, significantly contributing to output.

• Strong cash flow from operations (USD 1.2 billion), reduced net debt, and available liquidity of USD 3.6 billion.

• Q3 dividend of USD 300 million declared, with full-year dividend guidance of USD 1.2 billion for 2025 and 2026.

Financial highlights

• Q3 2025 total income was USD 2,140 million, with CFFO at USD 1.2 billion and capex at USD 726 million.

• Average realised price was USD 68/boe; 18% of gas volumes sold at USD 90/boe under fixed-price contracts.

• Net interest-bearing debt at quarter-end was USD 5.2 billion, leverage ratio at 0.9x, and available liquidity at USD 3.6 billion.

• Q3 dividend of USD 300 million confirmed; annual dividend guidance of USD 1.2 billion for 2025 and 2026.

• EBIT margin was 50% in Q3 2025; net profit was USD 152 million, down from Q2 due to higher depreciation.

Outlook and guidance

• Full-year 2025 production guidance: 330,000–360,000 boe/d; Q4 2025 expected at ~430,000 boe/d.

• Production cost guidance: USD 11–12/boe for 2025, trending to USD 10/boe by Q4 and targeted long-term.

• Development capex for 2025 guided at USD 2.3–2.5 billion; exploration capex at USD 400 million.

• Dividend policy: 25–30% of CFFO after tax; annual dividend guidance of USD 1.2 billion for 2025 and 2026 maintained.

• Targeting sustainable production of 350,000–400,000 boe/d through 2030 and beyond.