Vår Energi (VAR) Q4 & CMD 2026 earnings summary

Executive summary

• Achieved transformational growth in 2025, with record production averaging 332 kboepd and Q4 output reaching 397 kboepd, driven by major project completions and strong operational efficiency of 92%.

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

• Maintains a consistent strategy focused on long-term value creation, high production, operational excellence, safety, low emissions, and attractive dividends.

• 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.

• Expanded reserves and resources to 2.2 billion boe, with a 2P reserve replacement ratio of 185%.

Financial highlights

• 2025 cash flow from operations post-tax reached USD 4.6 billion, a 35% increase year-over-year, with full-year revenue around USD 8 billion and Q4 revenue at USD 2.2 billion.

• Production cost per boe decreased to USD 10.0 in Q4 and averaged USD 11.1 for the year, a 25% year-over-year reduction.

• Available liquidity at year-end was USD 3.5 billion, with a leverage ratio of 0.8x and investment-grade balance sheet.

• Realised average price in Q4 2025 was USD 62/boe, with gas prices outperforming spot averages and 15% of Q4 gas volumes sold at USD 75/boe via fixed-price contracts.

• EBIT for Q4 was USD 947 million, profit before tax USD 788 million, and net profit USD 25 million, impacted by impairments and exchange losses.

Outlook and guidance

• 2026 production guidance is 390,000–410,000 boepd, with production cost expected around USD 10/boe.

• Development capex for 2026 is projected at USD 2,500–2,700 million, exploration capex at USD 250–300 million, and abandonment capex at USD 200 million.

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

• 13 projects in execution and up to 8 new project sanctions planned for 2026, targeting 140 million bbl net reserves.

• Exploration program includes 12 wells in 2026, targeting 75 million bbl net risked resources.