Vår Energi ASA

Earnings Release • Jul 23, 2024

Vår Energi reports strong operational and financial performance in the second quarter and first half of 2024

Vår Energi reports strong operational and financial performance in the second quarter and first half of 2024

Sandnes, Norway, 23 July 2024: Vår Energi ASA (OSE: VAR) reports strong

operational performance and financial results in line or better than guidance.

The Company is on track to deliver on the 2025 growth target and unlock future

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:

https://events.webcast.no/vaar-energi/quarterly-reports/flfrQrJ8fHjBty4IRq6Y

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.