Vår Energi Full Year 2024 Earnings: Misses Expectations

Vår Energi (OB:VAR) Full Year 2024 Results

Key Financial Results

• 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.
• EPS: US$0.11 (down from US$0.24 in FY 2023).

VAR Production

Combined production

• Oil equivalent production: 102.456 MMboe (77.713 MMboe in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Vår Energi Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 59%.

In the last 12 months, the only revenue segment was Oil & Gas - Exploration & Production contributing US$7.37b. The most substantial expense, totaling US$3.34b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how VAR's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 4.4% decline forecast for the Oil and Gas industry in Norway.

Performance of the Norwegian Oil and Gas industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

It's necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Vår Energi (at least 1 which shouldn't be ignored), and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.