Vår Energi ASA

Earnings Release • Jul 22, 2025

Vår Energi reports strong results in the second quarter 2025

Vår Energi reports strong results in the second quarter 2025

Sandnes, Norway, 22 July 2025: Vår Energi ASA (OSE: VAR) reports strong results

with key growth projects delivered as expected and a pipeline of quality new

projects being moved forward to sustain long term resilience.

Production on-track for the mid-point of full year guidance

· Jotun FPSO successfully on stream, peak production expected during September

· Johan Castberg producing at plateau

· Current production above 350 kboepd

· Major turnarounds completed by end July

Strengthened financial position

· Unit production cost on track to meet approximately USD 10 per boe by the

fourth quarter

· 25% of gas volumes locked in at USD 92 per boe

· Successful issuance of USD 1.5 billion senior notes

· Increased liquidity through refinancing of credit facilities

· Utilising flexibility to reduce spend by around USD 500 million in 2025/26

Demonstrating growth and unlocking future value

· Adding approximately 180 kboepd at peak from new fields in 2025

· Progressing project portfolio with four project sanctions year to date

· Exploration successes adding high value barrels

Delivering predictable and attractive dividends

· Second quarter dividend of USD 300 million (NOK 1.222 per share) will be

distributed 26 August[1]

· Full year dividend guidance for 2025 and 2026 of USD 1.2 billion

"We are pleased to report strong results for the quarter. Our key growth

projects have been delivered as expected, with four of the nine projects to come

on stream this year already online.  Johan Castberg is producing at full

capacity, the Jotun FSPO at the Balder field and Halten East are ramping up and

Ormen Lange Phase III has started ahead of plan. With current production above

350 thousand barrels of oil equivalent per day (kboepd), we expect to reach

about 430 kboepd in the fourth quarter, delivering on our plans for

transformative growth in 2025.

The Company is on track to sustain production at 350-400 kboepd towards 2030,

which will be achieved by developing our portfolio of around 30 early phase

projects. Over 10 of these projects are set to be sanctioned this year, with

four already sanctioned in the first half, including the Balder Phase VI and

Fram Sør subsea tie-backs. These projects are being moved forward at speed to

deliver high value barrels with strong economics and average breakeven below USD

35 per barrel.

Our exploration program continues to deliver successful results, with three

commercial discoveries so far this year, continuing the Company's leading

exploration track record on the Norwegian Continental Shelf.

During the first half of 2025, the Company's financial position has been

strengthened through the successful refinancing of credit facilities and

issuance of senior notes, totalling USD 5.2 billion, reducing cost of debt and

providing significant available liquidity.

To further improve the resilience and competitiveness of our business in a

volatile market, measures are taken to reduce spend by USD 500 million for 2025

and 2026, while maintaining the long-term production outlook.

On the back of this strong performance, the Company continues to provide

attractive and predictable shareholder distributions. We confirm a dividend of

USD 300 million for the second quarter and guide a total dividend distribution

of USD 1.2 billon for the full year 2025 and USD 1.2 billion for the full year

2026"  says Nick Walker the CEO of Vår Energi.

1..The dividend is subject to EGM approval 12 August

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/18mFAGS5mbXH1ta6dCzD

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

+47 905 09 291

ida.fjellheim@­varenergi.no

Media relations

Andreas Wulff, VP Public Affairs

+47 926 16 759

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 22 July 2025 at 07:00 CEST.