Vår Energi ASA

Earnings Release • Apr 23, 2025

Vår Energi reports strong financial results in the first quarter 2025

Vår Energi reports strong financial results in the first quarter 2025

Sandnes, Norway, 23 April 2025: Vår Energi ASA (OSE: VAR) reports strong results

in line with expectations and is on track to deliver transformative growth in

2025 while maintaining resilience and flexibility in a volatile market.

Operational performance in-line with expectations

· Production of 272 kboepd in the first quarter of 2025, in line with

expectations

· Successful start-ups of Halten East and Johan Castberg

· Continued strong performance on operated assets ahead of target

Strong financial performance

· Strong cash flow from operations post tax of USD 1.3 billion in the quarter

· Unit production cost of USD 11.6 per boe, within guidance

· Locked in ~20% of gas volumes at USD 90 per boe in the second and third

quarters

· Reduced net debt, with leverage ratio of 0.8x

· Successful issuance of EUR 1 billion senior notes, 4x times oversubscribed

· Resilience with low free cashflow breakeven and capital flexibility with

around 70% of future capex uncommitted

Delivering on growth towards end-2025 and unlocking future value

· Adding approximately 180 kboepd at peak from nine project start-ups towards

the fourth quarter 2025

· Balder Jotun FPSO moored at field location and Balder X on track for end

second quarter 2025 start-up

· Unlocking significant potential in the Goliat area with Zagato discovery,

targeting more than 200 mmboe in discovered and prospective gross resources

Continued attractive and predictable dividends

· Dividend of USD 300 million (NOK 1.245 per share) for the first quarter will

be distributed 8 May

· Dividend guidance of USD 300 million for the second quarter of 2025, with a

dividend distribution of 25-30% of CFFO after tax for the full year

"We are pleased to deliver strong results in line with expectations for the

quarter. The Halten East and Johan Castberg projects came on stream and the

Jotun FPSO is expected to start production by end of the second quarter. The

Company is set for transformational growth in 2025, adding around 180 thousand

barrels of oil equivalent (kboepd) from new projects and is on track deliver

over 400 kboepd by the fourth quarter.

Our exploration success continues, highlighted by the recent Zagato discovery,

the third in a row near the Goliat FPSO, increasing the total discovered and

prospective gross recoverable resources on the Goliat ridge to over 200 million

barrels (mmboe).

In the current uncertain market environment our business remains resilient, with

low free cash flow break-even and a highly flexible investment program of which

70% is uncommitted. Our investment grade balance sheet provides significant

available liquidity, underscored by the recent issuance of EUR 1 billion of

senior notes, four times oversubscribed.

On the back of strong operational and financial results, we confirm an

attractive dividend distribution of USD 300 million for the first quarter, while

maintaining our distribution policy of 25-30% of CFFO after tax for the full

year.

We are confident that the long term fundamental role of oil and gas remains

unchanged and Vår Energi has the flexibility and resilience to navigate through

the cycles," 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 Carlo Santopadre.

You can follow the webcast with supporting slides, available on:

https://events.webcast.no/vaar-energi/quarterly-reports/lBOsh2869nSceac7SeFV

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.

Safe and responsible operations are at the core of our strategy. Our ambition is

to be the safest operator on the NCS, and to become carbon neutral in our net

equity operational emissions by 2030.

Vår Energi has around 1400 employees and equity stakes in 42 producing 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, VP Investor Relations

+47 90509291

ida.fjellheim@varenergi.no

Media relations

Andreas Wulff, VP Public Affairs

+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 April 2025 at 07:00 CET.