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for growth and long-term value creation founded on a de-risked path to more than
50% production increase by end-2025, sustained high value generation beyond, ESG
leadership and attractive shareholder returns.
The Company reported USD 2 374 million in total income for the fourth quarter of
2022, bringing total income for the full year 2022 to USD 9 828 million, an
increase of 62% from 2021 primarily due to higher oil and gas prices. Profit
before taxes was USD 1 793 million in the quarter (+67% compared to last
quarter) while USD 5 856 million for the full year compares to USD 2 647 million
in 2021.
Cash flow from operations (CFFO) was USD 443 million in the quarter and USD 5
682 million for the full year. A dividend of USD 290 million (NOK 1.225 per
share) for the third quarter was paid in November and USD 300 million (NOK 1.226
per share) for the fourth quarter will be distributed in March. The company
further plans to distribute a dividend of USD 270 million for the first quarter
2023. For 2023, Vår Energi plans to distribute dividends of approximately 30% of
CFFO after tax.
Q4 and 2022 highlights
· Continued safe operations, no serious incidents in the quarter
· Production of 214 kboepd in the fourth quarter, stable from the third
quarter, full-year 2022 production of 220 kboepd within the revised guided range
· Production guidance for 2023 of 210-230 kboepd
· Average weighted realised price of USD 115 per boe in the quarter (oil USD
87 per boe, gas USD 182 per boe)
· Fourth quarter and full-year production cost of USD 14.1 per boe and USD
13.5 per boe, respectively, within the guided range for the full year
· Full-year 2023 production cost expected at USD 14.5 - 15.5
· 2022 exploration success rate of 57%, adding approximately 65 million boe
(mmboe) of resources including the Vår Energi-operated Lupa discovery, the
largest on the NCS for the year
· Project portfolio progressing according to plan, including PDO for the
partner-operated Verdande project
· Successful issue of USD 2 billion of five- and ten-year bonds in the US debt
market in the fourth quarter
· Continued strong balance sheet with leverage ratio at 0.3x at year-end 2022
· The Board declared dividend of NOK 1.226 per share for the fourth quarter,
totalling USD 300 million, to be distributed on 3 March
· Total dividend distribution for 2022 of USD 1 075 million
2023 CMU highlights - growth and value creation
· On track for production of above 350 kboepd by end-2025 based on 17
sanctioned projects with the majority well into execution with committed
investments, including the key projects Balder X, Johan Castberg and Breidablikk
· A long-term ambition of sustaining production and high value creation beyond
2025, supported by operational excellence, a high-value project portfolio, world
-class exploration capabilities and value accretive M&A
· A clear path to net zero for operated assets by 2030 (scope 1 and 2)
· Attractive dividend policy maintained supported by resilient cash flow
generation
“Today, Vår Energi celebrates one year as a listed company. In that brief
period, we have delivered strong cash generation and attractive dividends. We
have also progressed our development projects and are firmly on track for the
end-2025 production and cost targets. Our exploration team yet again delivered
world-class results and we are proud to be the operator of the largest discovery
on the NCS in 2022. We expect a continued high activity level for 2023 as we
work to realise our full potential and deliver more than 50% production growth
towards end-2025 and lay the foundation for sustained high value creation beyond
that,” said Torger Rød, the CEO of Vår Energi.
Webcast and conference call today 10:00 CET
The Company’s Q4 and CMU presentation followed by Q&A will be transferred via
live webcast from 10:00 CET hosted by CEO Torger Rød and CFO Stefano Pujatti.
You can follow the webcast with supporting slides, available on:
https://cmu.plaii.no/
The report, presentation material and webcast will be available at
www.varenergi.no.
About Vår Energi
Vår Energi is a leading independent upstream oil and gas company on the
Norwegian continental shelf (NCS). We are committed to deliver a better future
through responsible value driven growth based on over 50 years of NCS
operations, a robust and diversified asset portfolio with ongoing development
projects, and a strong exploration track record. Our ambition is to be the
safest operator on the NCS, the partner of choice, an ESG leader and a net-zero
producer (Scope 1 and 2) by 2030. Vår Energi has more than 900 employees and
equity stakes in 36 fields producing net 220,000 boe per day in 2022. We have
our headquarters outside Stavanger, Norway, with offices in Oslo and Hammerfest.
To learn more, please visit varenergi.no.
Contact
Investor relations
Ida Marie Fjellheim, Head of Investor Relations
+47 90509291
ida.fjellheim@varenergi.no
Media relations
Andreas Wulff, Communication Manager
+47 92616759
andreas.wulff@varenergi.no
This announcement may include projections and other “forward-looking” statements
within the meaning of applicable securities laws. Any such projections or
statements reflect the current views of Vår Energi AS (“Var Energi”) about
further events and financial performance. No assurances can be given that such
events or performance will occur as projected and actual results may differ
materially from these projections. Var Energi undertakes no obligation to
publicly release any revisions to these forward-looking statements to reflect
events or circumstances after the date of this announcement.
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This stock exchange
release was published by Ida Fjellheim, Head of Investor Relations at Vår Energi
ASA, on 16 February 2023 at 07:00 CET.
Kilde
Men det er jo godt nytt.
