Vår Energi (VAR) Q3 2025 earnings summary

Executive summary

• Achieved transformational production growth ahead of schedule, with Q3 2025 output at 370,000 boepd (up 29% sequentially) and Q4 targeted at ~430,000 boepd, driven by major project ramp-ups and de-risked outlook.

• Seven out of nine new projects are on stream in 2025, including Jotun FPSO and Johan Castberg at plateau, contributing to peak new volumes of 180,000 boepd in 2025.

• Strong financial position with reduced net debt, $3.6 billion in liquidity, and continued focus on cost reduction.

• Confirmed $300 million Q3 dividend, with $1.2 billion dividend guidance for both 2025 and 2026.

• Integration of Neptune Energy Norway AS completed, strengthening the asset base and synergies.

Financial highlights

• Q3 2025 cash flow from operations after tax was $1.2 billion, with free cash flow at $508 million and capex at $726 million.

• Revenues exceeded $2.1 billion in Q3, driven by increased production and higher sales volumes.

• EBIT was $1,071 million, profit before tax $1,005 million, and net profit $152 million, with EBIT margin at 50%.

• Realized average price was $68 per BOE, with oil at $69, gas at $72, and 18% of Q3 gas volumes sold at $90 per BOE.

• Net debt to EBITDA leverage ratio at 0.9, with net interest-bearing debt at $5.2 billion and cash balance at $840 million.

Outlook and guidance

• 2025 production guidance is 330,000–360,000 boepd, with Q4 2025 expected at ~430,000 boepd and 2026 at 400,000 boepd; targeting 350,000–400,000 boepd through 2030.

• Production costs guided at $11–$12 per barrel for 2025, trending to ~$10 per barrel by Q4 and targeted to sustain long-term.

• CAPEX for 2025 expected at $2.3–$2.5 billion, with $2–$2.5 billion range thereafter; exploration capex at $400 million.

• Dividend guidance reaffirmed at $1.2 billion for both 2025 and 2026, targeting 25–30% of CFFO after tax.

• Cash tax payments of ~$0.8 billion expected in Q4 2025.