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VAR

Vår Energi OB:VAR Stock Report

Last Price

kr34.63

Market Cap

kr86.4b

7D

-3.5%

1Y

n/a

Updated

29 Sep, 2022

Data

Company Financials +
VAR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health2/6
Dividends4/6

VAR Stock Overview

Var Energi AS, an independent upstream oil and gas company, explores for, develops, and produces hydrocarbons.

Vår Energi Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Vår Energi
Historical stock prices
Current Share Pricekr34.63
52 Week Highkr47.20
52 Week Lowkr25.56
Beta0
1 Month Change-20.77%
3 Month Change-7.51%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO24.91%

Recent News & Updates

Aug 03
The Strong Earnings Posted By Vår Energi (OB:VAR) Are A Good Indication Of The Strength Of The Business

The Strong Earnings Posted By Vår Energi (OB:VAR) Are A Good Indication Of The Strength Of The Business

Vår Energi AS ( OB:VAR ) just reported healthy earnings but the stock price didn't move much. We think that investors...

Jul 29
Earnings Miss: Vår Energi AS Missed EPS By 88% And Analysts Are Revising Their Forecasts

Earnings Miss: Vår Energi AS Missed EPS By 88% And Analysts Are Revising Their Forecasts

Vår Energi AS ( OB:VAR ) just released its latest quarterly report and things are not looking great. It wasn't a great...

Shareholder Returns

VARNO Oil and GasNO Market
7D-3.5%-1.3%-5.1%
1Yn/a53.3%-4.5%

Return vs Industry: Insufficient data to determine how VAR performed against the Norwegian Oil and Gas industry.

Return vs Market: Insufficient data to determine how VAR performed against the Norwegian Market.

Price Volatility

Is VAR's price volatile compared to industry and market?
VAR volatility
VAR Average Weekly Movement6.7%
Oil and Gas Industry Average Movement7.4%
Market Average Movement6.6%
10% most volatile stocks in NO Market11.4%
10% least volatile stocks in NO Market3.7%

Stable Share Price: VAR is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: VAR's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1965900Torger Rodhttps://www.varenergi.no

Var Energi AS, an independent upstream oil and gas company, explores for, develops, and produces hydrocarbons. The company operates four fields on the Norwegian continental shelf, including the Goliat, Marulk, Balder, and Ringhorne and Ringhorne East fields located in the Barents, the Norwegian, and the North Sea, as well as holds ownership interests in 32 producing partner-operated fields on the Norwegian continental shelf. It has reserves of 1,147 million barrels of oil equivalent on the Norwegian continental shelf.

Vår Energi Fundamentals Summary

How do Vår Energi's earnings and revenue compare to its market cap?
VAR fundamental statistics
Market Capkr86.44b
Earnings (TTM)kr8.86b
Revenue (TTM)kr94.50b

9.8x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VAR income statement (TTM)
RevenueUS$8.80b
Cost of RevenueUS$1.35b
Gross ProfitUS$7.45b
Other ExpensesUS$6.63b
EarningsUS$825.60m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 25, 2022

Earnings per share (EPS)0.33
Gross Margin84.66%
Net Profit Margin9.38%
Debt/Equity Ratio213.0%

How did VAR perform over the long term?

See historical performance and comparison

Dividends

12.4%

Current Dividend Yield

58%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is VAR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VAR?

Other financial metrics that can be useful for relative valuation.

VAR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA1.5x
PEG Ratio-1.4x

Price to Earnings Ratio vs Peers

How does VAR's PE Ratio compare to its peers?

VAR PE Ratio vs Peers
The above table shows the PE ratio for VAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8x
AKRBP Aker BP
14.1x-6.6%kr195.2b
DNO DNO
3.6x-19.3%kr11.8b
RAKP RAK Petroleum
3.6xn/akr5.9b
BWE BW Energy
10.6x29.5%kr5.4b
VAR Vår Energi
9.8x-7.0%kr86.4b

Price-To-Earnings vs Peers: VAR is expensive based on its Price-To-Earnings Ratio (9.8x) compared to the peer average (8x).


Price to Earnings Ratio vs Industry

How does VAR's PE Ratio compare vs other companies in the European Oil and Gas Industry?

Price-To-Earnings vs Industry: VAR is expensive based on its Price-To-Earnings Ratio (9.8x) compared to the European Oil and Gas industry average (5.4x)


Price to Earnings Ratio vs Fair Ratio

What is VAR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.8x
Fair PE Ratio10.3x

Price-To-Earnings vs Fair Ratio: VAR is good value based on its Price-To-Earnings Ratio (9.8x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).


Share Price vs Fair Value

What is the Fair Price of VAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VAR (NOK34.63) is trading below our estimate of fair value (NOK48.99)

Significantly Below Fair Value: VAR is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Vår Energi forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-7.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VAR's earnings are forecast to decline over the next 3 years (-7% per year).

Earnings vs Market: VAR's earnings are forecast to decline over the next 3 years (-7% per year).

High Growth Earnings: VAR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VAR's revenue is expected to decline over the next 3 years (-6.5% per year).

High Growth Revenue: VAR's revenue is forecast to decline over the next 3 years (-6.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VAR's Return on Equity is forecast to be very high in 3 years time (42.4%).


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Past Performance

How has Vår Energi performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


20.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VAR has high quality earnings.

Growing Profit Margin: VAR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VAR's earnings have grown significantly by 20.3% per year over the past 5 years.

Accelerating Growth: VAR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VAR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (27.2%).


Return on Equity

High ROE: Whilst VAR's Return on Equity (52.97%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Vår Energi's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VAR's short term assets ($2.0B) do not cover its short term liabilities ($3.4B).

Long Term Liabilities: VAR's short term assets ($2.0B) do not cover its long term liabilities ($13.7B).


Debt to Equity History and Analysis

Debt Level: VAR's net debt to equity ratio (155.8%) is considered high.

Reducing Debt: Insufficient data to determine if VAR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VAR's debt is well covered by operating cash flow (177.5%).

Interest Coverage: VAR's interest payments on its debt are well covered by EBIT (138.8x coverage).


Balance Sheet


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Dividend

What is Vår Energi current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


12.40%

Current Dividend Yield

Dividend Yield vs Market

Vår Energi Dividend Yield vs Market
How does Vår Energi dividend yield compare to the market?
SegmentDividend Yield
Company (Vår Energi)12.4%
Market Bottom 25% (NO)3.8%
Market Top 25% (NO)8.0%
Industry Average (Oil and Gas)6.9%
Analyst forecast in 3 Years (Vår Energi)12.1%

Notable Dividend: VAR's dividend (12.4%) is higher than the bottom 25% of dividend payers in the Norwegian market (3.8%).

High Dividend: VAR's dividend (12.4%) is in the top 25% of dividend payers in the Norwegian market (7.97%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether VAR's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if VAR's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (57.6%), VAR's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (30.6%), VAR's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Torger Rod

no data

Tenure

Mr. Torger Rod serves as Chief Executive Officer of Vår Energi AS. Mr. Torger Rød came to Vår Energi from the position as Head of Safety and Security in Equinor. He has spent many years working with Equino...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of VAR?
Owner TypeNumber of SharesOwnership Percentage
Institutions128,206,0675.1%
General Public275,948,58911.1%
Private Companies517,635,55920.7%
Public Companies1,574,616,03563.1%

Dilution of Shares: VAR only recently listed within the past 12 months.


Top Shareholders

Top 25 shareholders own 88.91% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
63.08%
Eni S.p.A.
1,574,616,035$54.5b-9.7%no data
20.74%
Point Resources Holding AS
517,635,559$17.9b-31.23%no data
3.09%
Capital Research and Management Company
77,220,589$2.7b0%0.02%
1.02%
DNB Asset Management AS
25,366,922$878.3m-1.87%0.31%
0.28%
The Vanguard Group, Inc.
7,056,610$244.3m0%no data
0.11%
IG Investment Management, Ltd.
2,752,900$95.3m0%0.03%
0.1%
Mackenzie Financial Corporation
2,485,340$86.1m0.35%0.01%
0.079%
KLP Kapitalforvaltning AS
1,973,000$68.3m6.65%0.04%
0.056%
Franklin Resources, Inc.
1,393,845$48.3m-49.66%no data
0.051%
UBS Asset Management
1,269,800$44.0m0%no data
0.049%
Lightman Investment Management Limited
1,230,000$42.6m0%2.07%
0.044%
Alken Asset Management LLP
1,090,465$37.8m0%0.63%
0.042%
Pictet Asset Management Limited
1,041,607$36.1m0%no data
0.034%
Skagen AS
837,500$29.0m0%0.04%
0.021%
Canada Life Investment Management Ltd.
529,400$18.3m0%0.15%
0.017%
Danske Bank A/S, Asset Management Arm
420,500$14.6m9.42%0.02%
0.016%
First Trust Advisors LP
405,729$14.0m-0.87%no data
0.016%
Wellington Management Group LLP
400,946$13.9m0%no data
0.014%
DNCA Finance
350,000$12.1m0%0.01%
0.012%
Sissener AS
300,000$10.4m0%0.42%
0.011%
AXA Towarzystwo Funduszy Inwestycyjnych S.A.
265,700$9.2m0%0.46%
0.01%
Victory Capital Management Inc.
249,538$8.6m0%no data
0.0096%
Credit Suisse Asset Management (Switzerland)
240,144$8.3m0%no data
0.0076%
Warburg Invest Kapitalanlagegesellschaft mbH
189,475$6.6m-35.85%0.05%
0.0065%
J.P. Morgan Asset Management, Inc.
162,017$5.6m-32.89%no data

Company Information

Vår Energi AS's employee growth, exchange listings and data sources


Key Information

  • Name: Vår Energi AS
  • Ticker: VAR
  • Exchange: OB
  • Founded: 1965
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: kr86.438b
  • Shares outstanding: 2.50b
  • Website: https://www.varenergi.no

Number of Employees


Location

  • Vår Energi AS
  • Vestre Svanholmen 1
  • Sandnes
  • Rogaland
  • 4313
  • Norway


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0AAYLSE (London Stock Exchange)YesOrdinary SharesGBNOKFeb 2022
VAROB (Oslo Bors)YesOrdinary SharesNONOKFeb 2022
J4VDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2022
VAROBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKFeb 2022

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.