Vår Energi ASA

Earnings Release • Oct 25, 2022

Vår Energi reports third quarter 2022 results

Vår Energi reports third quarter 2022 results

Sandnes, Norway, 25 October 2022: Vår Energi ASA (OSE: VAR) reported USD 2 526

million in total income for the third quarter of 2022, EBIT was USD 1 454

million and cash flow from operations (CFFO) was USD 1 503 million in the

quarter.

The Company expects to distribute USD 1.075 billion in dividend for 2022 under

current market conditions, paid on a quarterly basis. A dividend of USD 260

million (NOK 1.025 per share) for the second quarter was paid in August and USD

290 million (NOK 1.225 per share) for the third quarter will be distributed in

November. The company further plans to distribute a dividend of USD 300 million

(NOK ~1.27 per share) for the fourth quarter.

Highlights:

· Safe operations, no serious incidents in the quarter

· Production of 215 kboepd, an increase from 210 kboepd in the second quarter

mainly due to reduced maintenance and turnaround activity on partner-operated

fields

· Full year 2022 production guidance revised to 220-225 kboepd

· Average weighted realised price of USD 139 per boe in the quarter (oil USD

108 per boe, gas USD 204 per boe)

· Production cost of USD 13.4 per boe, down from USD 14.7 per boe in the

previous quarter on increased production and exchange rate effects

· Revised Balder X schedule and investment estimate, other major development

projects progressing according to schedule amid continued macro and supply chain

uncertainties. Overall capex guidance for 2022 maintained

· Net impairment of USD 573 million in the quarter, after-tax impact of USD

308 million reflected in net income

· USD 5 099 million in available liquidity

· Leverage ratio reduced to 0.2x at the end of September from 0.4x at the end

of June due to strong cash flow from operations and increased cash position

· The Board declared dividend of NOK 1.225 per share for the third quarter,

totalling USD 290 million, to be distributed on 9 November

"Macro complexity and the global security situation influence energy markets

with wide-reaching effects, reaffirming the importance of the Norwegian

Continental Shelf as a reliable supplier of oil and gas to Europe. Against this

backdrop, our focus is on safe, efficient and secure operations, working in

close collaboration with our partners and relevant authorities. At the same

time, we progress the developments which are set to deliver our longer-term

production growth, and while we revised the Balder X schedule and investment

estimate in the quarter, we continue to deliver strong cash flow and shareholder

distributions in 2022", said Torger Rød 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 Torger Rød and CFO Stefano Pujatti.

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

https://streams.eventcdn.net/vaarenergi/2022q3/

To access the conference call, please pre-register at:

https://www.netroadshow.com/events/login?show=e3f36eae&confId=43057

You will receive your access details via email.

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 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 246,000 boe per day in 2021. 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 25 October 2022 at 06:50 CET.