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value.
Strong operational performance
· Production of 293 kboepd in first half in the upper end of guidance range
for the period
· Good production efficiency on operated fields
· Maintenance program successfully executed in the quarter
Good financial performance
· Total income in the quarter was USD 1 940 million, a decrease of USD 16
million from last quarter
· Achieved realised gas price of USD 70 per boe, USD 10 per boe above spot
price
· Unit production cost below guided range with USD 12.4 per boe in the quarter
· Solid cash flow from operations of USD 711 million
· Long term gas contracts with key customers extended for an additional 12
years
Progressing towards ~400 kboepd by end-2025 and unlocking future value
· Balder X target fourth quarter 2024 start-up remains with sail-away decision
in August
· Recent start-ups of Eldfisk North and Kristin South projects. Johan
Castberg firmly on track for fourth quarter first oil
· Portfolio optimisation resulting in sale of Norne and Bøyla assets with
expected completion by year-end
· Close-to-infrastructure exploration success in the Balder and Gjøa areas
Continued attractive and predictable dividends
· Dividend of USD 270 million (NOK 1.184 per share) for the second quarter
will be distributed 6 August
· Dividend guidance of USD 270 million for the third quarter of 2024, with a
dividend distribution of approximately 30% of CFFO after tax for the full year
· Solid balance sheet with leverage ratio of 0.8x
"We are pleased to see another quarter of delivery, with strong operational and
financial results. Production in the first half of the year averaged 293
thousand barrels of oil equivalent per day, in the upper end of the guided range
for the period. While high realised gas prices above spot were maintained, the
full year operating costs and capital spend will be in the lower end of the
guided range. As a result, we continue to provide attractive and predictable
shareholder returns.
Vår Energi remains on track to increase production to around 400 kboepd by end
2025, as one of the world’s fastest growing E&P’s. We continue to make good
progress on delivering on our portfolio of development projects with the recent
start-ups of Eldfisk North and Kristin South. The Johan Castberg FPSO has left
the yard and is firmly on track to start-up in the fourth quarter. At Balder X,
the FPSO is nearing completion and modifications implemented to improve the
flexibility to install the vessel on the field, enabling a decision on
installation before the winter weather period to be made at the end of August.
Our exploration program continues to add value with the commercial Cerisa
discovery in the Gjøa area. Added to three recent discoveries, the area holds
total gross recoverable resources to be developed of up to 110 million barrels
of oil equivalent with potential to be tied back to the partly electrified Gjøa
asset, ensuring low carbon emissions, and high margin barrels.
In the quarter, two strategically important long-term gas sales agreements were
extended with Eni and VNG, for the supply of up to an additional 10 billion
standard cubic meters of natural gas until mid-2036. Portfolio optimisation
continued, with sales announced for the non-core Norne and Bøyla assets.
We maintain our ESG leading position, with top quartile carbon emissions
intensity performance, while being awarded as operator the Iroko CO\2\ storage
license in the North Sea." says Nick Walker, the CEO of Vår Energi.
Webcast and conference call
The company will today hold a webcast and conference call followed by Q&A at
10:00 CET hosted by CEO Nick Walker and CFO Stefano Pujatti.
You can follow the webcast with supporting slides, available on:
Q2 2024 • WN Event
The report, presentation 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 with a tangible
plan to reduce emissions from our operations by more than 50% within 2030. Vår
Energi has around 1400 employees and equity stakes in 47 fields. We have our
headquarters outside Stavanger, Norway, with offices in Oslo, Hammerfest and
Florø. 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, VP Public Relations
+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 23 July 2024 at 07:00 CET.
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