Buy Or Sell Opportunity • Apr 28
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 33% to kr46.08. The fair value is estimated to be kr37.86, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 4.8%. For the next 3 years, revenue is forecast to decline by 0.7% per annum. Earnings are forecast to grow by 2.1% per annum over the same time period. Announcement • Apr 24
Vår Energi ASA Announces Dividend for the First Quarter of 2026, Payable on 12 June, 2026 and Dividend Guidance for the Second Quarter of 2026 Vår Energi ASA announced dividend for the first quarter of 2026, payable on 12 June, 2026 and dividend guidance for the second quarter of 2026. For the first quarter, the company announced dividend of USD 300 million, which will be distributed on 12 June, 2026.
For the second quarter, the company expects dividend continues at USD 300 million, in line with stated dividend policy of 25 to 30% of cash flow from operations after tax over the cycles. Reported Earnings • Apr 22
First quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2026 results: EPS: US$0.14 (down from US$0.17 in 1Q 2025). Revenue: US$2.66b (up 45% from 1Q 2025). Net income: US$356.5m (down 19% from 1Q 2025). Profit margin: 13% (down from 24% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) exceeded analyst estimates by 6.1%. Revenue is forecast to stay flat during the next 3 years compared to a 1.7% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Major Estimate Revision • Apr 14
Consensus EPS estimates increase by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from US$10.5b to US$10.9b. EPS estimate increased from US$0.417 to US$0.478 per share. Net income forecast to grow 79% next year vs 75% growth forecast for Oil and Gas industry in Norway. Consensus price target up from kr43.90 to kr46.10. Share price fell 9.0% to kr44.89 over the past week. Buy Or Sell Opportunity • Apr 13
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 35% to kr46.46. The fair value is estimated to be kr38.47, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 7.0% over the last 3 years. Earnings per share has declined by 12%. For the next 3 years, revenue is forecast to grow by 1.9% per annum. Earnings are also forecast to grow by 2.8% per annum over the same time period. New Risk • Apr 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Norwegian stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (936% net debt to equity). Dividend is not well covered by earnings (155% payout ratio). Share price has been volatile over the past 3 months (7.2% average weekly change). Reported Earnings • Mar 23
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: US$0.31 (up from US$0.11 in FY 2024). Revenue: US$7.97b (up 8.0% from FY 2024). Net income: US$780.2m (up 194% from FY 2024). Profit margin: 9.8% (up from 3.6% in FY 2024). The increase in margin was driven by higher revenue. Oil reserves Proven reserves: 883 MMbbls Combined production Oil equivalent production: 121.3 MMboe (102.5 MMboe in FY 2024) Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 23%. Revenue is forecast to stay flat during the next 3 years compared to a 2.3% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 25% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to kr49.97, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 9x in the Oil and Gas industry in Norway. Total returns to shareholders of 201% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr63.52 per share. Major Estimate Revision • Mar 16
Consensus EPS estimates increase by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from US$8.81b to US$9.63b. EPS estimate increased from US$0.332 to US$0.377 per share. Net income forecast to grow 29% next year vs 39% growth forecast for Oil and Gas industry in Norway. Consensus price target up from kr37.85 to kr39.00. Share price rose 6.6% to kr42.54 over the past week. New Risk • Mar 16
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.9% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.9% per year for the foreseeable future. Minor Risks High level of debt (936% net debt to equity). Dividend is not well covered by earnings (155% payout ratio). Reported Earnings • Feb 11
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: US$0.31 (up from US$0.11 in FY 2024). Revenue: US$7.97b (up 8.0% from FY 2024). Net income: US$780.2m (up 194% from FY 2024). Profit margin: 9.8% (up from 3.6% in FY 2024). The increase in margin was driven by higher revenue. Combined production Oil equivalent production: 121.3 MMboe (102.456 MMboe in FY 2024) Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 19%. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 2.3% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Feb 10
Vår Energi ASA Provides Production Guidance for the Full Year 2026 Vår Energi ASA provided production guidance for the full year 2026. For the year, the company production in the range of 390,000 to 410,000 barrels of oil equivalent per day (kboepd) and raises the long-term production target to more than 400 kboepd. Major Estimate Revision • Feb 03
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from US$8.34b to US$8.23b. EPS estimate also fell from US$0.44 per share to US$0.396 per share. Net income forecast to grow 50% next year vs 17% growth forecast for Oil and Gas industry in Norway. Consensus price target up from kr36.16 to kr37.02. Share price fell 2.9% to kr33.32 over the past week. Announcement • Jan 30
Vår Energi ASA Approves Dividend for Fourth Quarter 2025, Payable on 12 February 2026 The extraordinary general meeting of Vår Energi ASA was held on 30 January 2026. In accordance with the proposals made by the Board of directors, the general meeting approved a dividend of NOK 1.209 per share, NOK 3,018,155,151 in total, equivalent to USD 300 million, relating to fourth quarter of 2025. Last day including right is 2 February 2026. Ex-date is 3 February 2026. Record date is 4 February 2026. Payment date is 12 February 2026. Announcement • Jan 27
Vår Energi ASA Reports Non-Cash Impairment Guidance for the Fourth Quarter of 2025 Vår Energi ASA reported non-cash impairment guidance for the fourth quarter of 2025. For the quarter, the non-cash impairment of technical goodwill is estimated to be around USD 70 million pre-tax (around USD 70 million post tax) related to Njord Area, Gjøa and Snorre. Upcoming Dividend • Jan 27
Upcoming dividend of kr1.21 per share Eligible shareholders must have bought the stock before 03 February 2026. Payment date: 12 February 2026. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 14%. Within top quartile of Norwegian dividend payers (8.2%). Higher than average of industry peers (8.1%). Announcement • Jan 16
Var Energi Delivers Successful Well Test Results at the Goliat Ridge Var Energi announced the completion of the appraisal well with two production tests on the Zagato structure in the Goliat Ridge discovery in the Barents Sea, confirming reservoir quality and adding recoverable volumes. The well was drilled approximately seven kilometers northeast of the Var Energi operated Goliat field. The production tests confirmed good quality reservoirs and oil quality similar to the Goliat field. The latest well tested two intervals with each showing maximum flow rates of more than 4000 barrels of oil per day, confirming reservoir quality. Var Energi and licence partner Equinor have drilled a total of five wells and one side track in the area. Including the latest well, the Goliat Ridge is estimated to contain gross discovered recoverable resources of 35 to 138 million barrels of oil equivalents (mmboe), and with additional prospective resources taking the total gross potential to over 200 mmboe. A tie-back to the nearby Goliat FPSO is being planned, targeting first production in 2029. Announcement • Jan 09
Vår Energi ASA Proposes Dividend for the Fourth Quarter of 2025, Payable on 12 February 2026 Vår Energi ASA announced on 9 January 2026 the notice of an extraordinary general meeting to be held on 30 January 2026 to approve a dividend of NOK 1.209 per share, amounting to a total of NOK 3,018,155,151, equivalent to USD 300 million, relating to Fourth Quarter 2025. The dividend, subject to approval by the EGM, will be paid in NOK, with the amount based on the daily exchange rate published by Norges Bank on 7 January 2026. The last day including the right to the dividend is 2 February 2026, the ex-date is 3 February 2026, the record date is 4 February 2026, and the payment date is 12 February 2026. Announcement • Nov 12
Vår Energi ASA Approves Dividend for Third Quarter 2025, Payable on 25 November 2025 The extraordinary general meeting of Vår Energi ASA was held on 11 November 2025, In accordance with the proposals made by the Board of directors, the general meeting approved a dividend of NOK 1.211 per share, NOK 3,023, 147,964 in total, equivalent to USD 300 million, relating to Third quarter of 2025. Ex-date: 17 November 2025 with Record date: 18 November 2025. Payment date: 25 November 2025. Date of approval: 11 November 2025. Last day including right: 14 November 2025. Announcement • Nov 11
Vår Energi ASA, Annual General Meeting, May 12, 2026 Vår Energi ASA, Annual General Meeting, May 12, 2026. Upcoming Dividend • Nov 10
Upcoming dividend of kr1.21 per share Eligible shareholders must have bought the stock before 17 November 2025. Payment date: 25 November 2025. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 13%. Within top quartile of Norwegian dividend payers (9.4%). Higher than average of industry peers (8.3%). Reported Earnings • Oct 22
Third quarter 2025 earnings: EPS misses analyst expectations Third quarter 2025 results: EPS: US$0.054 (down from US$0.066 in 3Q 2024). Revenue: US$2.12b (up 16% from 3Q 2024). Net income: US$134.6m (down 18% from 3Q 2024). Profit margin: 6.4% (down from 9.0% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 44%. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 4.3% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Oct 22
Vår Energi ASA Provides Production Guidance for the Fourth Quarter and Full Year of 2025; Provides Production Guidance for the Year 2026 Vår Energi ASA provided production guidance for the year 2025. For the year, the company on track to meet around the midpoint of full year guidance range of 330,000 to 360,000 barrels of oil equivalent per day.
For the fourth quarter, the company expects to produce approximately 430,000 barrels per day in the fourth quarter, which means the company is on track to meet around the midpoint of the production guidance range for the year.
For the year 2026, the company will maintain approximately 400,000 barrels per day in 2026. Announcement • Aug 26
Vår Energi AS Provides Production Guidance for the Fourth Quarter and Full Year of 2025 Vår Energi AS provided production guidance for the fourth quarter and full year of 2025. For the quarter, the company is on track to produce around 430 kboepd in the fourth quarter of this year.
For the year, the company expects to achieve the mid-point of its full-year production guidance of 330 kboepd to 360 kboepd. Announcement • Aug 12
Vår Energi as Approves Dividend for Second Quarter 2025, Payable on 26 August 2025 Vår Energi AS at its EGM held on August 12, 2025 approved a dividend of NOK 1.222 per share, NOK 3,050,608,433 in total, equivalent to USD 300 million, relating to Second Quarter 2025. Payment date: 26 August 2025; Record date: 19 August 2025; Ex-date: 18 August 2025. Upcoming Dividend • Aug 11
Upcoming dividend of kr1.22 per share Eligible shareholders must have bought the stock before 18 August 2025. Payment date: 26 August 2025. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 13%. Within top quartile of Norwegian dividend payers (9.1%). Higher than average of industry peers (8.4%). Reported Earnings • Jul 22
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: US$0.08. Revenue: US$1.85b (down 4.4% from 2Q 2024). Net income: US$216.7m (up 4.3% from 2Q 2024). Profit margin: 12% (up from 11% in 2Q 2024). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 5.7%. Earnings per share (EPS) also missed analyst estimates by 38%. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 3.7% decline forecast for the Oil and Gas industry in Norway. Announcement • Jul 22
Vår Energi AS Provides Full Year Dividend Guidance for 2025 and 2026 Vår Energi AS provided Full year dividend guidance for 2025 and 2026 of USD 1.2 billion. Announcement • Jul 21
Var Energi Makes Commercial Gas-Condensate Discovery Near the Fenja Field in the Norwegian Sea Var Energi announced a new commercial gas and condensate discovery in the Vidsyn exploration well, located close to the Var Energi-operated Fenja field in the Norwegian Sea. The discovery is the third commercial discovery for Var Energi so far in 2025 and will be evaluated as a potential tie-in to Fenja. The discovery was made on the Vidsyn ridge, which has the potential to hold up to 100 million barrels of oil equivalent (mmboe) gross. The Vidsyn well confirms discovered recoverable resources in the range of 25 to 40 mmboe gross, which are considered commercial. The remaining potential of the ridge will be assessed through an appraisal programme, to facilitate for a fast track development. The well encountered very good quality reservoirs with over 200 metres of hydrocarbon column. The discovery is located updip of a previous exploration well, providing a clear framework confirming commerciality and supporting further evaluation of the broader Vidsyn ridge. The reservoir contains high quality gas-condensate only eight kilometres from the existing Fenja subsea infrastructure, which is tied into the Njord host facility. The partners in the licence are Var Energi (operator, 75%) and DNO ASA's wholly-owned subsidiaries DNO Norge AS (7.5%) and Sval Energi AS (17.5%). Announcement • Jul 11
Vår Energi as Provides Production Guidance for the Fourth Quarter; Reaffirms Production Guidance for Full Year 2025 Vår Energi AS Provides Production Guidance for the Fourth Quarter; Reaffirms Production Guidance for Full Year 2025. For the quarter, the company expects production guidance to be around 430 kboepd.
For the full year company expects production in the middle of the guided range of 330 to 360 kboepd. Announcement • Jun 30
Var Energi Together with Partners Equinor and Petoro, Announces Commercial Oil Discovery in the Barents Sea Var Energi together with partners Equinor and Petoro, announced a commercial oil discovery in the Equinor operated Drivis Tubaen prospect in the Barents Sea, adding to recent exploration success in the area. The discovery will be considered as a possible tie-in to the Johan Castberg facilities. The preliminary gross recoverable resources are estimated to be between 9-15 million barrels of oil equivalent (mmboe). The well was drilled in the Drivis structure within the Johan Castberg field, as part of the plan to further develop the area. Announcement • Jun 26
Var Energi and Equinor and Inpex Idemitsu Submits the Plan for Development and Operation for the Fram Sor Project in the North Sea Var Energi and its partners in the Fram licence, Equinor and INPEX Idemitsu, have submitted the plan for development and operation (PDO) for the Fram Sor project in the North Sea. Production is scheduled to start at the end of 2029. The Fram partners will invest more than NOK 21 billion (USD 2.2 billion) in the subsea project, operated by Equinor. Recoverable reserves are estimated at 116 million barrels of oil equivalent (mmboe) gross, of which 75% is oil and 25% gas. The Fram Sor project (in licences PL090/090I/090E) is a combined development of several discoveries, including Echino South and Blasto, that will export oil and gas via the Troll C platform. The development will bring highly valuable barrels on stream by connecting new infrastructure to existing facilities. Fram Sor has strong economics and fulfils Var Energi's investment criteria for new developments. Building on recent discoveries, Mulder and Rhombi, a series of follow-on exploration targets are set to be drilled in the coming years, unlocking potential further upside. Var Energi estimate that the prospective unrisked resources in the area is more than 200 mmboe gross. The PDO was submitted to the Minister of Energy in Norway, Terje Aasland. Fram partners: Equinor Energy AS (operator and 45%), Var Energi ASA (40%) and INPEX IdEMitsu Norge AS (15%). Announcement • Jun 23
Var Energi Starts Production from the Jotun FPSO Kistos Holdings plc announced the announcement made by Var Energi, the operator of the Balder Area, Norway, confirming the start of production from the Jotun FPSO. With production set to ramp up over the next few months, adding 8,000 boepd (net) to existing 3,000 boepd (net) from the wider Balder Area, peak production in Norway is expected to exceed 11,000 boepd (Net). These low-cost barrels will notably increase the oil weighting of portfolio and deliver significant cashflow. Utilising the infrastructure now in place, Balder Phase V and the recently sanctioned Phase VI project will bring new production wells onstream as early as this year, accelerating the conversion of 2C resources to 2P reserves and offering fast-track developments to sustain long-term, high-value production. The entry into Norway, has delivered significant upside for the Company and its shareholders, for a nominal consideration with significant mitigations put in place around the timing of the completion of the Balder Future project. It highlights the importance that will always place as a management team on identifying opportunities which offer significant near-term value accretion, at the right price and on the right terms. Var Energi successfully started production through the Jotun FSPO. This marks the start of a new era for the Balder field in the North Sea, extending the life of the first production licence, PL001, on the Norwegian Continental Shelf, adding high value barrels towards 2045 and beyond. By bringing the Jotun FPSO onstream, production is expected, within three to four months after start-up, to increase by approximately 80 thousand barrels of oil equivalent per day (kboepd) gross, on top of the current production of approximately 30 kboepd gross through the Balder FPU and Ringhorne facilities. The Jotun FPSO will have a low operating cost of around USD 5 per barrel and estimated gross proved plus probable recoverable reserves from the project at 150 million barrels of oil equivalent (mmboe). All 14 production wells have been completed and will be brought onstream during the ramp-up period to reach peak production. Together with the Balder Phase V project starting up later this year, the project has a payback time of around two years1. In addition, with the Jotun FPSO installed as an area host, Var Energi is taking necessary steps to add new production through infill drilling, exploration and tie-back developments with short time to market. Var Energi is operator (90%) of the Balder field, with Kistos Energy Norway as partner (10%). Declared Dividend • Apr 25
First quarter dividend of kr1.25 announced Shareholders will receive a dividend of kr1.25. Ex-date: 29th April 2025 Payment date: 8th May 2025 Dividend yield will be 16%, which is higher than the industry average of 13%. Sustainability & Growth Dividend is not covered by earnings (173% earnings payout ratio) nor is it covered by cash flows (115% cash payout ratio). The dividend has increased by an average of 6.4% per year over the past 3 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 92% to bring the payout ratio under control. EPS is expected to grow by 25% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Announcement • Apr 23
Vår Energi AS Announces Dividend for the First Quarter of 2025, Payable on May 08, 2025 The Board of Vår Energi ASA has resolved to pay a dividend payment of NOK 1.245 per share, NOK 3,108,025,776 in total, equal to USD 300 million relating to first quarter of 2025. Ex-date is April 29, 2025. Payment date of May 08, 2025. Record date is April 30, 2025. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to kr28.97, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 5x in the Oil and Gas industry in Norway. Total returns to shareholders of 15% over the past three years. Reported Earnings • Apr 01
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: US$0.11 (down from US$0.24 in FY 2023). Revenue: US$7.37b (up 8.2% from FY 2023). Net income: US$265.3m (down 56% from FY 2023). Profit margin: 3.6% (down from 8.8% in FY 2023). The decrease in margin was driven by higher expenses. Oil reserves Proven reserves: 776 MMbbls Combined production Oil equivalent production: 102.456 MMboe (77.713 MMboe in FY 2023) Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 59%. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 2.9% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Mar 31
Vår Energi AS Starts Production Vår Energi AS announced production from the Johan Castberg field commenced on 31 March, marking the start of a new era in the Barents Sea region. The field will contribute with 66 kbopd net to Var Energi at plateau levels and is an important catalyst for the Company to deliver on its growth target of reaching more than 400 thousand barrels of oil equivalent per day (kboepd) in fourth quarter this year. The Equinor operated Johan Castberg FPSO has a gross capacity of 220 kbopd, and the field holds gross recoverable volumes of between 450 and 650 million barrels of oil. 12 production wells are now ready to be put on stream, sufficient to bring the field to plateau levels in the second quarter of 2025. A total of 30 wells will be drilled at the Johan Castberg field, and drilling operations are expected to continue towards the end of 2021. Johan Castberg reinforces the role of the Barents Sea as a major energy provider to Europe, while creating value for all stakeholders, including major ripple effects in northern Norway. The Johan Castberg area is highly prospective, and several new discoveries made in recent years are already being matured into projects, including Johan Castberg Cluster 1. Cluster 2 is progressing through near field exploration, and an extensive infill drilling program is being planned. In total, there are between 250 and 550 million barrels of oil of additional gross unrisked recoverable resources identified in the area. Johan Castberg is located 240 kilometres northwest of Hammerfest. The field has a supply and helicopter base in Hammerfest. Announcement • Mar 13
Var Energi Initiates Tow Out of the Jotun Floating Production, Storage and Offloading Vessel (FPSO) from the Worley Rosenberg Yard to the Balder Field Var Energi initiates tow out of the Jotun floating production, storage and offloading vessel (FPSO) from the Worley Rosenberg yard to the Balder field - on schedule for production start by the end of the second quarter this year. Balder X is a key element to this plan and once the Jotun FPSO comes on stream, production from the field will be close to quadrupled, adding around 80 kboepd gross at peak. Balder X, with a payback time of around two years, including the sanctioned Balder Phase V project, marks the start of a new era in the North Sea, extending the lifetime of the first production licence PL001 on the Norwegian Continental Shelf to 2045 and beyond, and opens a wide potential for continued value creation. The Balder X project develops gross proved plus probable (2P) reserves of 150 million barrels of oil equivalent (mmboe). In addition, with the Jotun FPSO installed as an area host, Var Energi is taking necessary steps to add new production through infill drilling, exploration and tie-back developments with short time to market. Also, in the Greater Balder area several new early phase projects are being progressed towards sanction, including Ringhorne North, Balder future phases and the King discovery, targeting gross contingent resources of more than 70 mmboe. While these projects are being moved forward, further exploration drilling is planned to unlock considerable additional resources. The Jotun FPSO also creates an opportunity to optimise the infrastructure in the area, including taking the Balder floating production unit (FPU) to shore for decommissioning, and the planned electrification of the Balder/Grane Area, reducing unit production cost and carbon emissions for the company. The tow out program for the Jotun FPSO from Worley Rosenberg yard in Stavanger includes a number of stages: First, the FPSO vessel will perform inclination tests at the quayside before being towed to Amoyfjorden, near Stavanger, for inshore sea trials and anchor installation work. After this, the vessel will be towed to the field for installation, hook-up to the installed subsea production systems and final commissioning. All 14 production wells are completed, and production is planned to start by the end of the Second quarter 2025, with an expected three to four months ramp up period to peak production. Recent Insider Transactions • Feb 23
Chief Executive Officer recently bought kr1.1m worth of stock On the 18th of February, Nicholas John Walker bought around 35k shares on-market at roughly kr32.83 per share. This transaction amounted to 5.2% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Nicholas John has been a buyer over the last 12 months, purchasing a net total of kr1.3m worth in shares. Declared Dividend • Feb 14
Fourth quarter dividend of kr1.21 announced Shareholders will receive a dividend of kr1.21. Ex-date: 17th February 2025 Payment date: 25th February 2025 Dividend yield will be 14%, which is higher than the industry average of 13%. Sustainability & Growth Dividend is not covered by earnings (395% earnings payout ratio) nor is it covered by cash flows (198% cash payout ratio). The dividend has increased by an average of 5.6% per year over the past 3 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 339% to bring the payout ratio under control. EPS is expected to grow by 50% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Announcement • Feb 13
Vår Energi Provides Production Guidance for the Fourth Quarter and Full Year of 2025 and Full Year of 2026 Vår Energi provides production guidance for the fourth quarter and full year of 2025 and full year of 2026. For the quarter, the company expects production guidance increased to over 400 kboepd driven by project start-ups.
For the full year of 2025, the company production expects at 330-360 kboepd.
For the full year of 2026, the company plan to maintain production at around 400 kboepd and organically sustain production between 350-400 kboepd towards 2030. Reported Earnings • Feb 12
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: US$0.11 (down from US$0.24 in FY 2023). Revenue: US$7.45b (up 9.3% from FY 2023). Net income: US$327.1m (down 46% from FY 2023). Profit margin: 4.4% (down from 8.8% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 58%. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 3.6% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Announcement • Feb 11
Vår Energi AS Resolves to Pay Dividend for the Fourth Quarter of 2024, Payable on February 25, 2025 The Board of Vår Energi ASA resolved to pay a dividend payment of NOK 1.213 per share, NOK 3,028,140,776 in total, equal to USD 270 million relating to fourth quarter of 2024. Ex-date: February 17, 2025. Record date is February 18, 2025. Payment date: February 25, 2025. Date of approval: February 10, 2025. Major Estimate Revision • Feb 07
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$7.73b to US$7.61b. EPS estimate also fell from US$0.308 per share to US$0.269 per share. Net income forecast to grow 72% next year vs 21% growth forecast for Oil and Gas industry in Norway. Consensus price target broadly unchanged at kr42.35. Share price was steady at kr34.27 over the past week. Announcement • Dec 12
Var Energi Confirms an Oil Discovery in the Operated Countach Appraisal Well Near the Goliat Field in the Barents Sea Var Energi ASA confirms an oil discovery in the operated Countach appraisal well near the Goliat field in the Barents Sea. The preliminary estimated gross recoverable resources encountered in the well are between 4 to 25 million barrels of oil equivalent (mmboe), bringing the total estimated recoverable resources in the Countach discovery to 10 to 55 mmboe. The discovery confirms the potential of the Goliat ridge, where additional gross prospective recoverable resources of over 100 mmboe will be assessed with the planned drilling program in 2025. The appraisal well was drilled following the Countach discovery of 3 to 13 mmboe announced in 2023, which is located about 13 kilometres northeast of the Goliat FPSO, and the results from the well increase the estimated gross recoverable resources for the discovery to between 10 to 55 mmboe". In addition to encountering oil in the Cobbe formation with good reservoir quality, an oil column of over 200 metres was encountered in the Klappmyss formation, which despite being of poorer reservoir quality, opens new opportunities in the deeper section of the Goliat ridge. To assist further development of the Goliat area, Var Energi is planning to acquire new 3D and 4D seismic during 2025. Estimated additional gross prospective recoverable resources in the Goliat ridge at the Zagato North, Zagato South and Goliat North prospects are estimated to exceed 100 mmboe. In comparison, the original plan of development and operations (PDO) for Goliat was based on total expected recoverable reserves of 176 million barrels of oil, underlining the significance of the Goliat ridge opportunity. The Barents Sea is believed to hold half of the remaining undiscovered resources on the NCS. The Countach appraisal well is the first well of the planned two-year drilling campaign in the Barents Sea, a collaboration effort with Equinor, targeting both infill production and exploration wells. In total, Var Energi plans to drill around 20 exploration wells in the Barents Sea region over a four-year period, as part of the Company's plan to sustain production at 350-400 thousand barrels of oil equivalent per day long term. After completing work at Countach, a new exploration well is planned on the Elgol prospect, located 17 kilometres northeast of Goliat. Var Energi operates the licence with 65% of interest, while Equinor owns the remaining 35%. Announcement • Dec 10
Var Energi ASA Provides a Schedule Update for the Johan Castberg Development Project Var Energi ASA provided a schedule update for the Johan Castberg development project, operated by Equinor. The field is expected to start-up in January/February 2025, moved from end-2024, due to adverse weather conditions in the Barents Sea during the final stage of commissioning and start-up. The Johan Castberg FPSO was anchored on the field in the Barents Sea in September this year. The FPSO has been drilled up to the subsea facility and the project is now approaching start-up. All wells required to meet the plateau capacity of 220 thousand barrels of oil equivalent per day (kboepd) have been drilled and are ready for production. Due to the revised plan for start-up the Company's 2024 full year production will be at the lower end of the guided range of 280 to 290 kboepd. The Company's end-2025 production target of around 400 kboepd is not affected by the updated project start-up. Buy Or Sell Opportunity • Dec 06
Now 21% undervalued Over the last 90 days, the stock has risen 3.8% to kr34.74. The fair value is estimated to be kr43.81, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 8.0% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Buy Or Sell Opportunity • Oct 27
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 5.2% to kr36.37. The fair value is estimated to be kr29.61, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 7.8% per annum. Earnings are also forecast to grow by 15% per annum over the same time period. Declared Dividend • Oct 24
Third quarter dividend of kr1.18 announced Shareholders will receive a dividend of kr1.18. Ex-date: 28th October 2024 Payment date: 5th November 2024 Dividend yield will be 13%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (202% earnings payout ratio) nor is it adequately covered by cash flows (99% cash payout ratio). The dividend has increased by an average of 7.0% per year over the past 2 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 124% to bring the payout ratio under control. EPS is expected to grow by 50% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Announcement • Oct 24
Vår Energi AS, Annual General Meeting, May 12, 2025 Vår Energi AS, Annual General Meeting, May 12, 2025. Reported Earnings • Oct 23
Third quarter 2024 earnings: EPS misses analyst expectations Third quarter 2024 results: EPS: US$0.07 (down from US$0.08 in 3Q 2023). Revenue: US$1.87b (up 16% from 3Q 2023). Net income: US$180.3m (down 4.3% from 3Q 2023). Profit margin: 9.6% (down from 12% in 3Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.7%. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 5.5% decline forecast for the Oil and Gas industry in Norway. Announcement • Oct 15
Vår Energi Announces Chief Financial Officer Changes Vår Energi ASA announced a change to its executive committee. Effective 1 December 2024, Carlo Santopadre will join the executive committee as Chief Financial Officer. Carlo Santopadre has over 15 years of experience in the industry, primarily with the Italian energy major, Eni SpA. He has held various senior finance roles in Eni Head Office and subsidiaries across North Africa, the Middle East, and West Africa. Prior to joining Eni he worked for KPMG. Stefano Pujatti, who has served as CFO in Vår Energi since 2019, will be pursuing new opportunities within Eni following a short transition period. The Company thanks Stefano for his significant contributions and leadership over the past five years. Announcement • Aug 31
DNO Norge AS completed the acquisition of unknown minority stake in five oil and gas fields in the Norne area in the Norwegian Sea of Vår Energi ASA. DNO Norge AS entered into an agreement to acquire unknown minority stake in five oil and gas fields in the Norne area in the Norwegian Sea of Vår Energi ASA on May 8, 2024. The cash consideration is $51 million. In addition, the Company will transfer its stake in Ringhorne East (22.6%) located in a non-core area for DNO to Vår Energi. The transaction includes an interest in four producing fields, Norne (6.9 percent), Skuld (11.5%), Urd (11.5%) and Marulk (20%), plus the ongoing Verdande development (10.5%). Prior to the transaction, DNO held interests in Marulk (17%), Alve (32%) and the ongoing Andvare development (32%). The transaction creates a new core area for DNO in the North Sea as DNO will hold interests in all producing and under development fields in the greater Norne area, including the Norne hub. The transaction adds more than eight million barrels of oil equivalent (MMboe) in reserves and resources net to DNO. In terms of production, the transaction (net to DNO, including divestment of Ringhorne East) is estimated to add 3,000 barrels of oil equivalent per day (boepd) to DNO’s output at closing, rising to above 5,000 boepd in 2026 as the Verdande contribution kicks in.
The effective date of the transaction is January 1, 2024 and the transaction is subject to customary regulatory approvals and is expected to close in the third quarter 2024. The transaction does not impact Vår Energi’s previously announced production guidance for 2024, year-end 2025 and beyond. Houlihan Lokey acted as exclusive financial advisor and Advokatfirmaet Schjødt as legal advisor to Vår Energi on the transaction.
DNO Norge AS completed the acquisition of unknown minority stake in five oil and gas fields in the Norne area in the Norwegian Sea of Vår Energi ASA on August 30, 2024. Announcement • Aug 30
Vår Energi Asa Announces Resignation of Ove Gusevik from the Board, Effective 1 September 2024 Ove Gusevik informed Vår Energi ASA (Company) that he has decided to resign from his position as board member in order to focus on assignments for HitecVision. The resignation is effective as of 01 September 2024. The election committee is in the process of finding a replacement for Gusevik, and an extraordinary general meeting for the purpose of supplementing the board is expected to be called shortly. Announcement • Aug 21
Vår Energi ASA Provides Schedule Update for the Balder X Development Project Vår Energi ASA provided a schedule update for the Balder X development project. The target production start has been moved to the second quarter 2025. As previously communicated, the revised plan has limited impact on the Company's 2024 production and no material impact on guided capital costs. The Company's end-2025 production target of around 400 thousand barrels of oil equivalent per day (kboepd) is not affected by the updated project start-up. With all development wells completed and all subsea production systems installed, the plan is now to complete the FPSO vessel fully onshore, enabling first oil within the second quarter next year. As part of the decision not to sail, the cost basis for the project has been updated reflecting a sail-away in the spring of 2025, this represents an additional project cost of around USD 400 million gross pre-tax (NOK ~4.27 billion¹) of which approximately 75% will be incurred in 2025. The Company's capital spend guidance for 2024 is revised down from USD 2.7-2.9 billion to around USD 2.6 billion, reflecting other cost reductions and a favourable NOK exchange rate. Vår Energi's production target for 2025 remains unchanged and the Company is on track to reach around 400 kboepd by end of next year. Balder X, will secure production from the Balder Area beyond 2045, unlocking gross proved plus probable (2P) reserves of around 150 million barrels of oil equivalent (mmboe) and with a gross peak production of 80 kboepd². The Jotun FPSO will be an area host, enabling future growth opportunities. Balder Phase V is being progressed, including the drilling of six production wells to utilise the remaining subsea template well slots to capture gross 2P reserves of more than 30 mmboe. Drilling of these wells will commence in the first half of 2025 and be completed in 2026. In addition, the Balder Phase VI project is being matured, to add new subsea facilities and wells, with expected investment decision planned first half of 2025. There remains significant additional resource upside in the area and further exploration drilling and tie-back development phases are being planned. Buy Or Sell Opportunity • Aug 05
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 10% to kr32.70. The fair value is estimated to be kr41.28, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.4% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 7.9% per annum. Earnings are also forecast to grow by 15% per annum over the same time period. Declared Dividend • Jul 25
Second quarter dividend of kr1.18 announced Shareholders will receive a dividend of kr1.18. Ex-date: 29th July 2024 Payment date: 6th August 2024 Dividend yield will be 13%, which is higher than the industry average of 13%. Sustainability & Growth Dividend is not covered by earnings (189% earnings payout ratio) nor is it covered by cash flows (133% cash payout ratio). The dividend has increased by an average of 7.0% per year over the past 2 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 110% to bring the payout ratio under control. EPS is expected to grow by 56% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. 
