Vår Energi ASA

Earnings Release • Jul 11, 2025

Vår Energi: Second quarter 2025 trading update

Vår Energi: Second quarter 2025 trading update

Sandnes, Norway, 11 July 2025: Vår Energi ASA (OSE: VAR, the "Company") will

publish its financial report for the second quarter 2025 on Tuesday 22 July.

Today, the Company provides an update on production, sales volumes and other

relevant items.

Vår Energi's net production of oil, liquids and natural gas averaged 288 kboepd

in the second quarter 2025, an increase of 6% from the previous quarter.

Production in the first half of the year averaged 280 kboepd, and was around the

bottom of the expected range, mainly due to the later start-up and slower ramp

-up to plateau at Johan Castberg than initially planned. With the main new

project start-up's achieved the Company is on track to deliver full year 2025

production in the middle of the guided range of 330 to 360 kboepd. Fourth

quarter 2025 production is expected to be around 430 kboepd.

The production split in the second quarter was 68% oil and NGLs (liquids) and

32% gas. Total volumes produced were 26.2 mmboe, whereas volumes sold in the

quarter amounted to 26.0 mmboe. Vår Energi obtained a strong average realised

price (volume-weighted) of USD 70 per boe in the quarter. The realised crude

price was USD 68 per barrel. The realised gas price of USD 79 per boe is a

result of fixed price contracts and flexible gas sales agreements, allowing for

optimisation of indices. The fixed price contracts represented 25% of second

quarter gas volumes sold at an average price of USD 92 per boe, substantially

above the spot market reference price. For third quarter fixed price gas

contracts represent 18% of volumes at USD 90 per boe.

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Production (kboepd)[1] Q2 2025 Q1 2025 Q2 2024 1H 2025 1H 2024

Crude oil 180 160 162 170 166

Gas 92 96 103 94 107

NGL 16 16 22 16 20

Total 288 272 287 280 293

Realised prices (USD/boe)

Crude oil price 68 76 85 72 85

Gas price 79 87 70 83 68

NGL price 43 54 44 47 47

Average (volume weighted) 70 79 77 74 76

Sales volumes (mmboe)

Crude oil 17.1 15.0 15.1 32.1 29.6

Gas 7.7 8.0 7.9 15.8 17.1

NGL 1.2 0.7 2.1 1.9 4.3

Total 26.0 23.8 25.1 49.8 51.0

Total production (mmboe) 26.2 24.5 26.1 50.7 53.3

¹ Produced figures are including fuel gas not for sale

Other items

Vår Energi's functional currency is NOK, whilst interest bearing loans are in

USD and EUR. In the second quarter of 2025 the Company incurred a net exchange

rate gain of USD 80 million.

As a result of the company history of mergers and acquisitions, Vår Energi has

several assets booked at fair value in the balance sheet. Changes in

assumptions, cost and production profiles can result in impairments and

reversals.

Non-cash impairment reversals in the second quarter are estimated to be around

USD 510 million pre-tax (around USD 112 million post tax) related to a reversal

on the Balder field triggered by changes in reserves. In addition, there are

impairments of technical goodwill on the Njord, Gjøa and Snøhvit areas of around

USD 70 million (around USD 70 million post tax).

As previously communicated, the following items impacted the free cash flow in

the second quarter: cash tax payments totaling NOK 5.2 billion (USD 504 million)

and a dividend payment for the first quarter of USD 300 million, paid in May.

The information above is based on a preliminary assessment of the Company's

second quarter 2025 financial results and may be subject to change until the

financial statements have been finally approved and published by the Company.

Second quarter webcast and conference call

Vår Energi will release its quarterly results on 22 July at 07:00 CEST. A

webcast and conference call followed by Q&A will be held at 10:00 CEST, 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/18mFAGS5mbXH1ta6dCzD

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

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.

This information is subject to disclosure requirements pursuant to section 5-12

of the Norwegian Securities Trading Act