Vår Energi (VAR) Q4 2025 & CMD 2026 earnings summary

Executive summary

• Achieved transformational growth in 2025, doubling production since 2023 to a record 332 kboepd, with Q4 output at 397 kboepd, and all major projects delivered on schedule.

• Positioned as the 3rd largest oil and gas producer in Norway, with a diversified asset base and interests in about 50% of all fields on the Norwegian Continental Shelf.

• Portfolio focused on low-risk, high-value subsea tiebacks, with a robust pipeline of over 40 projects and a resource base of around 3 billion bbl.

• Maintained strong ESG performance, with top-quartile emissions intensity (9.5 kg CO2/boe), industry-leading safety, and ISO 50001:2018 certification.

• Distributed USD 1.2 billion in dividends for 2025, with Q4 dividend of USD 300 million and guidance for Q1 2026 dividend at the same level.

Financial highlights

• Generated $4.6 billion in cash flow from operations post-tax in 2025, a 35% increase year-over-year despite lower prices.

• Achieved record production: 397,000 bbl/d in Q4 and 332,000 bbl/d for the year.

• Production costs reduced to $10 per barrel in Q4 2025, down 25% year-over-year.

• Available liquidity at $3.5 billion and a stable investment-grade balance sheet with leverage ratio at 0.8x.

• Full-year 2025 dividends totaled $1.2 billion, representing 26% of CFFO after tax.

Outlook and guidance

• 2026 production guidance: 390,000–410,000 bbl/d, with long-term target above 400,000 bbl/d and unit opex targeted at ~$10/boe.

• CapEx for 2026: $2.5–$2.7 billion for development, $250–300 million for exploration, and ~$200 million for abandonment.

• 13 projects in execution, developing 210 million bbl of net reserves at ~$30/bbl break-even.

• Up to eight new project sanctions in 2026, targeting 140 million bbl net reserves; 12 exploration wells planned targeting 75 million bbl net risked resources.

• Dividend policy remains at 25–30% of CFFO after tax, with quarterly guidance and Q1 2026 dividend at $300 million.