First quarter 2023

Interim report

Vår Energi in brief

Vår Energi is a leading independent upstream oil and gas Company on the Norwegian continental shelf (NCS). The Company is founded on more than 50 years of NCS operations, a robust and diversified asset portfolio with ongoing development projects centred around hubs, and a strong exploration track record. In 2022, Vår Energi produced net 220 kboepd of oil and gas from 36 fields.

The Company has a target to increase production to above 350 kboepd by end-2025 while reducing production cost to approximately USD 8 per boe from around USD 13.5 in 2022, as new projects come on stream and effects from improvement measures are achieved. Material cash flow generation and an investment grade balance sheet enable attractive and resilient dividend distributions. For the second quarter 2023, Vår Energi guides for a dividend of USD 270 million, and the Company maintains its plan to distribute around 30% of cash flow from operations after tax (CFFO) in 2023.

Vår Energi is listed on Oslo Stock Exchange (OSE) under the ticker "VAR".

Vår Energi is committed to delivering a better future. The Company's ambition is to be the safest operator, the partner of choice and an ESG leader with a tangible and concrete plan to reduce emissions from our operations by 50% within 2030.

To learn more, please visit: www.varenergi.no.

About Vår Energi	2
Key figures	3
Highlights	4
Key metrics and targets	5
Operational review	6
Projects and developments	9
Exploration	10
HSSE	11
Financial review	12
Outlook	20
Alternative Performance Measures	21
Financial statements	23
Notes	30

Key figures first quarter 2023

Fourth quarter 2022 in brackets

Production kboepd

Petroleum revenues USD million

EBIT USD million

1 432 (1 531)

Profit before tax USD million

1 276 (1 793)

CFFO USD million

1 358

(443)

Capex USD million

(800)

FCF USD million

(-356)

NIBD / EBITDAX x

0.3 (0.3)

First quarter 2023 highlights

Vår Energi reported USD 2 094 million in total income for the first quarter of 2023, a decrease of 12% from the fourth quarter 2022 primarily due to the timing of liftings. Profit before taxes was USD 1 276 million in the quarter, a decrease of around 29% compared to last quarter. Cash flow from operations (CFFO) was USD 1 358 million in the quarter, up from USD 445 million in the previous quarter.

A dividend of USD 300 million (NOK 1.226 per share) for the fourth quarter of 2022 was paid in March and USD 270 million (NOK 1.148 per share) for the first quarter will be distributed in May. The company further plans to distribute a dividend of USD 270 million for the second quarter 2023. For the full year, Vår Energi expects to distribute dividends of approximately 30% of CFFO after tax.

Continued safe operations, no serious incidents in the quarter
Production of 214 kboepd in the quarter, stable from the fourth quarter
Production guidance for 2023 maintained at 210-230 kboepd
Average volume-weighted realised price of USD 116 per boe in the quarter (oil USD 84 per boe, gas USD 176 per boe)
First quarter production cost reduced to USD 13.1 per boe on efficient production and less maintenance in the quarter
Full-year 2023 production cost expected at USD 14.5-15.5

Oil discovery in the operated Countach well in the Barents Sea confirmed in the quarter
Project portfolio progressing according to plan with the Frosk, Bauge and Hyme developments coming on stream and production target of above 350 kboepd by end-2025 maintained
Continued strong balance sheet with leverage ratio at 0.3x at end of March 2023
The Board declared a dividend of NOK 1.148 per share for the first quarter, totalling USD 270 million, to be distributed on 10 May

KPIs (USD million unless otherwise stated)	Q1 2023	Q4 2022	Q1 2022	FY 2022
Actual serious injury frequency (x, 12 months rolling)	0.0	0.1	0.1	0.1
CO2 emissions intensity (operated licenses, kg/boe)	13.0	10.2	7.6	9.0
Production (kboepd)	214	214	242	220
Production cost (USD/boe)	13.1	14.1	12.1	13.5
Cash flow from operations before tax	1 935	2 094	2 384	8 369
Cash flow from operations (CFFO)	1 358	443	2 201	5 682
Free cash flow (FCF)	715	(356)	1 579	3 089
Dividends paid	300	290	-	775

"We deliver continued strong cash generation in the first quarter supported by improved production efficiency, stable oil and gas volumes and high realised prices. Our exploration success continued with the Countach oil discovery in the Barents Sea, and we have several attractive prospects to be drilled during the year. The development projects that underpin our end-2025 production target progressed according to plan, with the Frosk, Bauge and Hyme developments starting production and Fenja set to come on stream later in the second quarter. Overall, we maintain a high activity level to deliver more than 50% production growth over the next three years"

Torger Rød, the CEO of Vår Energi

Key metrics and targets

Production split (kboepd)	Q1 2023	Q4 2022	Q1 2022	FY 2022

Crude oil	119.0	122.4	137.0	123.7
Gas	82.0	78.3	85.1	81.7
NGL	13.4	13.5	19.9	14.7
Total	214.4	214.3	241.9	220.1

Realised prices (USD/boe)	Q1 2023	Q4 2022	Q1 2022	FY 2022
Crude oil	83.6	86.6	99.6	101.7
Gas	175.5	181.6	163.4	174.5
NGL	54.1	54.7	72.6	65.4
Average (volume weighted)	115.9	115.1	119.8	124.1

Financials
(USD million unless otherwise stated)	Q1 2023	Q4 2022	Q1 2022	FY 2022
Total income	2 094	2 374	2 491	9 828
EBIT	1 432	1 531	1 750	6 369
Profit / (loss) before income taxes	1 276	1 793	1 727	5 856
Net earnings	195	488	431	936
Earnings per share (USD)	0.08	0.20	0.17	0.38
Dividend per share (USD)	0.12	0.12	-	0.31
NIBD / EBITDAX (including leasing)	0.3	0.3	0.6	0.3

Targets and outlook

2023 guidance (USD million unless otherwise stated)

Production	kboepd	210 – 230
Production cost	USD/boe	14.5 – 15.5
Development capex		2 400 – 2 700
Exploration capex		200
Abandonment capex		50
Dividends for Q1 2023 to be distributed 10 May		270
Dividend guidance for Q2 payable in Q3 2023		270
1 Q2 2023 cash tax payment estimate		~1 180

Long-term financial and operational targets

End-2025 production target	kboepd	> 350
End-2025 production cost 2	USD/boe	~8.0
Leverage through the cycle	NIBD/EBITDAX	1.3x

¹ Assumed NOK/USD 9.5. ² Real 2021

Operational review

Total production	Q1 2023	Q4 2022	Q1 2022	FY 2022
Total production (mmboe)	19.3	19.7	21.8	80.3	6%
Operated (kboepd)	36.4	38.2	48.5	40.7	20%
Partner operated (kboepd)	178.1	176.1	193.4	179.4
Total production (kboepd)	214.4	214.3	241.9	220.1
Percentage operated	17%	18%	20%	18%
Percentage partner operated	83%	82%	80%	82%
					Crude oil
Production by type (kboepd)	Q1 2023	Q4 2022	Q1 2022	FY 2022

Crude oil	119.0	122.4	137.0	123.7
Gas	82.0	78.3	85.1	81.7
NGL	13.4	13.5	19.9	14.7
Total	214.4	214.3	241.9	220.1

Production by type (percentage)	Q1 2023	Q4 2022	Q1 2022	FY 2022	kboepd
Crude oil	56%	57%	57%	56%	Total production
Gas	38%	37%	35%	37%
NGL	6%	6%	8%	7%	242
Total	100%	100%	100%	100%

Volumes sold / lifted (mmboe)	Q1 2023	Q4 2022	Q1 2022	FY 2022
Crude oil	10.5	12.6	12.4	45.9
Gas	6.6	6.6	7.1	27.1
NGL	0.9	1.3	1.2	5.8
Total	18.0	20.5	20.7	78.8

Production split

Q1 2023, percentage based on kboepd

Total production

kboepd

Production

Vår Energi's net production of oil, liquids and natural gas averaged 214 kboepd in the first quarter of 2023, in line with the previous quarter. The production was mainly impacted by the previously communicated riser integrity issue in the Balder area and start-up of development projects somewhat later than expected. Compared to the first quarter of 2022, production decreased by 11% mainly due to natural field decline.

During the quarter, the Company continued to reduce NGL recovery to increase gas sales, representing a net reduction of approximately 2 kboepd on an annual basis.

The Company maintains its guiding for an average production for 2023 in the range of 210-230 kboepd, reflecting the current production level, the expected net impact from new projects coming on stream in 2023, planned turnarounds and maintenance, various operational issues and natural decline.

Total volumes produced in the first quarter were 19.3 mmboe whereas volumes sold in the quarter amounted to 18.0 mmboe.

Production efficiency

Production efficiency (operated licenses) in the first quarter was 89%, an increase from 87% in the previous quarter. Production efficiency for Goliat was 97% in the quarter, whereas production efficiency for Balder/Ringhorne was 80% mainly due to the previously communicated riser issue.

Hubs

As part of Vår Energi's hub strategy, the Company identifies strategic focus areas that provide a framework for evaluating exploration and development opportunities, maximising the use of existing infrastructure and optimising value creation throughout the asset portfolio.

In the Balder area, production was positively impacted by the completion of repairs to the subsea systems in late 2022. However, the riser integrity issue at Ringhorne, which occurred in February and was communicated in the fourth quarter report, continued to reduce production by approximately 5 kboepd in the quarter. Work is ongoing to repair the riser with expected completion in Q3 2023
In the Barents Sea, the operated Goliat asset continued to deliver stable performance and the decrease in production from the previous quarter represented natural field decline

Production from the North Sea area was in line with the previous quarter as the Sleipner and Fram fields delivered strong performance while shut-in wells reduced production from the Statfjord and Snorre fields
In the Norwegian Sea, production increased by approximately 3 kboepd as the Frosk development started up in March, and production from Åsgård B and the tie-back fields Mikkel, Morvin and Kristin were fully restored after the fire incident in the fourth quarter. In April, the Bauge and Hyme developments also started production, with Fenja expected to come on stream later in the second quarter. The start-up of the three fields is somewhat behind the initial schedule due to delays at the Njord host operated by Equinor, and they are expected to contribute with approximately 10 kboepd for 2023

On 17 April, Gassco, the operator of the Norwegian gas export system, recommended establishing a new pipeline connecting the Barents Sea to the existing gas infrastructure in the Norwegian Sea. This would enable exports of natural gas from the Barents Sea to customers in Europe, unlock material proven resources and support further exploration of this highly prolific area, while generating significant value creation for the region. Vår Energi supports the development of an export

Diverse and robust portfolio positioned for value-adding growth

Production – hubs (kboepd)	Q1 2023	Q4 2022	Q1 2022	FY 2022

Balder Area	28.2	29.8	33.5	29.5
Barents Sea	18.4	19.5	26.7	21.1
North Sea	82.8	82.9	80.8	78.0
Norwegian Sea	85.0	82.1	101.0	91.4
Total	214.4	214.3	241.9	220.1

Production – hubs (percentage)	Q1 2023	Q4 2022	Q1 2022	FY 2022
Balder Area	14%	14%	13%	13%
Barents Sea	9%	9%	9%	10%
North Sea	39%	39%	36%	35%
Norwegian Sea	40%	38%	41%	42%
Total	100%	100%	100%	100%


Production cost (USD/boe)	Q1 2023	Q4 2022	Q1 2022	FY 2022
Production cost	10.6	12.0	9.4	10.9
Transportation cost	2.5	2.1	2.7	2.7
Total production cost	13.1	14.1	12.1	13.5

1 In real 2021 terms

Production cost

Total production cost was USD 13.1 per boe in the first quarter of 2023 compared to USD 14.1 in the previous quarter. The decrease is mainly due to less maintenance activities in the quarter.

Vår Energi maintains its guiding for 2023 of an average production cost per boe of USD 14.5 – 15.5 based on current projections and scheduled maintenance and turnaround activities in 2023.

In the longer term, the Company expects production cost to decrease towards its end-2025 target of approximately USD 8 1 per boe as new cost-effective developments come on stream and effects from improvement programmes and strategic partnerships are realised over time.

For more information, see production cost detailed in the financial review section.

Projects and developments

Vår Energi is participating in several significant development projects on the NCS which support the Company's target of producing above 350.000 boepd by end-2025. Overall, the Company's project portfolio progressed according to plan in the first quarter, including developments such as Balder X, Johan Castberg, Breidablikk and Fenja. The supply chain still poses challenges to the industry. However, the procurement scope for all key projects in the Vår Energi portfolio has largely been completed with main equipment packages delivered, reducing risk of negative impacts.

Balder X

The project is progressing towards first oil in the third quarter of 2024. Work is ongoing with high activity at the yard to complete the FPSO. Focus is on executing high construction volume and optimising the execution sequence of the remaining work. The positive trend on safety performance continued in the quarter and the project reached key milestones as planned. This includes reaching the "ready for re-float" milestone, with the physical re-float and turret re-installation planned in the third quarter.

Drilling operations are progressing per plan with five wells completed. All producing wells are expected to be completed for planned first oil to support rapid production ramp-up.

SPS/SURF activities are delivering according to plan with planning for the 80 vessel days offshore in 2023 ongoing.

Johan Castberg

Planned start-up of the Johan Castberg field remains in the fourth quarter of 2024. Construction activities have progressed according to plan at Aker Stord in the quarter.

Breidablikk

The field is planned to start production in the first quarter of 2024. The high activity period (HAP) on the Grane topside is ongoing with the hardware delivery for the 2023 installation campaign progressing as planned. Drilling operations remain well ahead of plan.

Bauge, Hyme and Fenja

The Njord A platform started production at the end of 2022 and the tie-in fields Bauge and Hyme were successfully phased into production during April. The final preparations are ongoing to start up the Fenja field, which is planned in the second quarter. Combined, the fields are estimated to represent a production of approximately 10 kboepd in 2023, with the peak output expected next year.

Exploration

In the first quarter, Vår Energi confirmed an oil discovery in the operated Countach well adjacent to the Goliat field in the Barents Sea. Preliminary estimates indicate the size of the discovery in the tested segment between 0.5 – 2.1 million Sm3 (3-13 million barrels) of total recoverable oil equivalents 1 . The potential of the Countach prospect in the undrilled segments is estimated at up to 3.7 million Sm3 (23 million barrels) of total recoverable oil equivalents. In agreement with the license partners, Vår Energi is currently evaluating the drilling of an appraisal well. The discovery is in line with the long-term strategic ambition to extend production through infrastructure-led developments in the Barents Sea, where the Company has a leading position.

Vår Energi also participated in the Angulata dry well in license PL554 in the North Sea, operated by Equinor. The well was drilled about 190 kilometres northwest of Bergen to prove petroleum in reservoir rocks in the Brent Group.

For 2023, the planned exploration drilling campaign includes eight firm exploration wells targeting a total of more than 50 mmboe of risked resources. Four of the firm wells are operated by Vår Energi.

In March, Vår Energi won the Exploration Revived Award 2023, a prestigious award instigated by the Norwegian Petroleum Society. The award is a recognition of companies who have made outstanding exploration efforts on the Norwegian Continental Shelf to locate new oil and gas resources and thus create ripple effects for the Norwegian society.

¹ Reported numbers are 100% unrisked recoverable resources

Health, safety, security and the environment (HSSE)

Key HSSE indicators	Unit	Q1 2023	Q4 2022	Q3 2022	Q2 2022	Q1 2022
Serious incident frequency (SIF Actual) 1 12M rolling avg	Per mill. exp. hours	0.0	0.1	0.1	0.1	0.1
Serious incident frequency (SIF) 1 12M rolling avg	Per mill. exp. hours	0.5	1.0	1.3	1.4	1.6
Total recordable injury frequency (TRIF) 2 12M rolling avg Per mill. exp. hours		3.8	3.2	3.7	2.7	2.5
Acute spill	Count	0	0	0	0	1
Process safety events Tier 1 and 2 3	Count	0	1	0	0	2
CO2 emissions intensity 4, 5	Kg CO2/boe	13.0	10.2	10.2	8.6	7.6

The company maintains high focus on implementation of its safety initiatives. The positive trend for SIF (Serious Incident Frequency) continued in the quarter. The 12-month rolling average SIF rate was 0.5, an improvement from 1.0 in the fourth quarter of 2022. One incident in the quarter was classified as having serious potential consequence. This is handled according to the Company's management system to maximise learning to avoid similar incidents in the future.

The number of recordable injuries, all of which had low actual consequences, increased in the first quarter of 2023. The 12-month rolling average Total Recordable Injury Frequency (TRIF) was 3.8 in the first quarter, compared to 3.2 in the fourth quarter 2022. The trend is

primarily driven by safety performance related to yard activities for the ongoing development project. All incidents are continuously managed according to the Company's management system. Initiatives have been implemented and learnings are shared to drive continuous improvement. Furthermore, Vår Energi keeps focusing on major accident potential and monitors key indicators through the Company's major accident risk indicator system (MARI).

Vår Energi and its contractors continues to maximise the effect of key safety tools, such as the Always Safe Annual Wheel, the Life-Saving Rules and the Company's internal TIR tool (Take Time, Involve, Report).

Decarbonisation and environmental impact

Ensuring access to energy for all while transitioning toward a lowcarbon economy is a major challenge both for Vår Energi and for the society. Reference is made to Vår Energi' Sustainability Report for 2022 for further details and the Company's approach towards reduced emissions and sustainable development.

The CO2 emissions intensity for operated assets in the first quarter 2023 was 13 kg CO2 per boe, compared to 10.2 kg CO2 per boe in the fourth quarter 2022. The increase mainly reflects high exploration activity and rig-supported well interventions at Goliat during the quarter. All 2023 emission numbers are preliminary until the EU ETS verification for 2023, which is complete by the end of the first quarter 2024.

⁵ Emission numbers corrected based on EU/ETS verification March 2023

¹ SIF: Serious incident and near-misses per million worked hours. Includes actual and potential consequence. SIF Actual: incidents that have an actual serious consequence.

² TRIF: Personal injuries requiring medical treatment per million worked hours. Reporting boundaries SIF & TRIF: Health and safety incident data is reported for company sites as well as contracted drilling rigs, floatels, vessels, projects and modifications, and transportation of personnel, using a risk-based approach.

³ Classified according to IOGP RP 456.

⁴ Direct Scope 1 emissions of CO2 (kg) from exploration and production (operational control, equity share) divided by total equity share production (boe) from Marulk, Goliat, Balder and Ringhorne East.

Financial review

Statment of income

USD million	Q1 2023	Q4 2022	Q1 2022	FY 2022
Total income	2 094	2 374	2 491	9 828
Production costs	(252)	(345)	(266)	(1 143)
Exploration expenses	(22)	(22)	(12)	(72)
Depreciation and amortisation	(340)	(332)	(441)	(1 448)
Impairment loss and reversals	-	(96)	11	(658)
Other operating expenses	(47)	(47)	(33)	(138)
Total operating expenses	(661)	(843)	(741)	(3 459)
Operating profit / (loss) (EBIT)	1 432	1 531	1 750	6 369
Net financial income / (expenses)	(30)	(19)	(29)	(116)
Net exchange rate gain / (loss)	(127)	281	6	(397)
Profit / (loss) before income taxes	1 276	1 793	1 727	5 856
Income tax (expense) / income	(1 081)	(1 305)	(1 296)	(4 919)
Profit / (loss) for the period	195	488	431	936

Total income (USD million)	Q1 2023	Q4 2022	Q1 2022	FY 2022
Petroleum revenues	2 089	2 354	2 483	9 781
Other operating income	4	19	8	47
Total income	2 094	2 374	2 491	9 828

Revenues from sale of petroleum products in the first quarter of 2023 were USD 2 089 million, a decrease of USD 265 million when compared to the fourth quarter of 2022. Petroleum revenues were negatively by USD 280 million due to lower sold volumes and positively impacted by USD 15 million due to higher realised product prices.

Vår Energi obtained an average realised price (volume-weighted) of USD 115.9 per boe in the quarter. The realised gas price of USD 175.5 per boe was a result of fixed price contracts and flexible gas sales agreements, allowing for optimisation of indices. The fixed price contracts represented approximately 34% of first quarter gas volumes sold at an average price of approximately USD 283 per boe, substantially above the spot markets reference price.

Similarly, Vår Energi has executed fixed price transactions for the remaining three quarters of the year. As at 14 April 2023, the Company has entered into the following transactions (based on the average exchange rate for Q1 23):

~22% of the gas production for the second quarter 2023 has been sold on a fixed price basis at an average price of ~191 USD per boe
~20% of the gas production for the third quarter 2023 has been sold on a fixed price basis at an average price of ~189 USD per boe
For the fourth quarter 2023, Vår Energi has sold ~21% of its estimated gas production with pricing linked to Gas Year Ahead prices. The Gas Year Ahead product has a 12-month pricing period (from 1 October 2022 to 30 September 2023). As at 31 March 2023, the cumulative average price for the first six months of the pricing period (1 Oct 22 to 31 Mar 23) was ~166 USD per boe

Petroleum revenue split by petroleum type (USD million)	Q1 2023	Q4 2022	Q1 2022	FY 2022

Revenue from crude oil sales	881	1 092	1 238	4 669
Revenue from gas sales	1 161	1 192	1 158	4 732
Revenue from NGL sales	47	70	87	379
Total petroleum revenues	2 089	2 354	2 483	9 781

Revenue split by petroleum type (percentage)	Q1 2023	Q4 2022	Q1 2022	FY 2022

Revenue from crude oil sales	42%	46%	50%	48%
Revenue from gas sales	56%	51%	47%	48%
Revenue from NGL sales	2%	3%	4%	4%
Total petroleum revenues	100%	100%	100%	100%

Realised prices (USD/boe)	Q1 2023	Q4 2022	Q1 2022	FY 2022

Crude oil price	83.6	86.6	99.6	101.7
Gas price	175.5	181.6	163.4	174.5
NGL price	54.1	54.7	72.6	65.4
Average (volume-weighted)	115.9	115.1	119.8	124.1

At the end of the first quarter, Vår Energi has also hedged 100% of the post-tax crude oil production until the first quarter 2024, with put options at a strike price of USD 50 per boe.

Production cost

USD million	Q1 2023	Q4 2022	Q1 2022	FY 2022

Cost of operations	157	190	162	701
Transportation and processing	48	42	58	214
Environmental taxes	30	31	34	123
Insurance premium	16	16	9	49
Production cost based on produced volumes	252	279	264	1 087
Back-up cost shuttle tankers	1	8	(1)	19
Adjustment of over/(underlift)	(10)	49	(8)	(2)
Premium expense for crude put options	9	10	11	40
Production cost based on sold volumes	252	345	266	1 143
Total produced volumes (mmboe) (unaudited)	19.3	19.7	21.8	80.3
Production cost USD/boe produced volumes (unaudited)	13.1	14.1	12.1	13.5

USD per boe 14.1 13.1 13.5 12.1

Production cost

Production cost based on produced volumes decreased by USD 27 million mainly due to less maintenance activity in the quarter.

Production cost based on sold volumes decreased by USD 93 million mainly due to change in overlift/(underlift) as there were less liftings compared to production in the quarter.

Exploration expenses

Exploration expenses in the first quarter were stable at USD 22 million, reflecting continued high exploration activity combined with the expense of a dry well.

Depreciation, depletion, amortisation (DD&A)

DD&A in the first quarter was USD 340 million (+2%) compared to USD 332 million in the quarter. DD&A compared to first quarter 2022 was down from 441 (-23%) mainly due to lower production.

Net finance

Net exchange rate loss amounted to USD 127 million in the quarter, consisting of a net realised gain of USD 48 million and a USD 175 million unrealised exchange rate loss. The unrealised loss is mainly related to the Company's interest-bearing loans. For more details, see note 6 in the financial statements.

Tax

The income tax in the quarter was USD 1 081 million, a decrease of USD 224 million from the fourth quarter of 2022. The tax rate for the quarter increased to 85% compared to 73% in the fourth quarter mainly due to unrealised exchange rate loss.

Q1 22 Q4 22 Q1 23 FY 22

Profit for the period

Net income of USD 195 million in the period was negatively impacted by an unrealised exchange rate loss due to weakening of the Norwegian krone in the period.

Condensed statement of financial position

Financial position (USD million)	31 Mar 2023	31 Dec 2022	31 Mar 2022

Intangible assets	2 224	2 338	2 861
Tangible fixed assets	14 253	14 738	16 077
Financial assets	1	1	2
Current assets	1 779	1 720	1 652
Total assets	18 258	18 797	20 592
Total equity	1 289	1 482	1 960
Non-current liabilities	13 741	14 007	15 372
Current liabilities	3 227	3 309	3 259
Total liabilities	16 969	17 316	18 631
Total equity and liabilities	18 258	18 797	20 592

Available liquidity	31 Mar 2023	31 Dec 2022	31 Mar 2022
Cash and cash equivalents	769	445	539
RBL	-	-	-
RCF	3 000	3 600	3 260
Total available liquidity	3 769	4 045	3 799

NIBD / EBITDAX

NIBD/EBITDAX

Total assets at the end of the first quarter amounted to USD 18 258 million, a decrease from USD 18 797 million at the end of the fourth quarter mainly due to lower capex and a weaker NOK-USD exchange rate.

Tangible fixed assets including property, plant and equipment (PP&E) were USD 14 253 million and movements are detailed in note 9 in the financial statements.

Total equity amounted to USD 1 289 million, corresponding to an equity ratio of about 7%.

Total cash and cash equivalents at the end of the first quarter were USD 769 million. The Company had 3 000 million in undrawn credit facilities at the end of the period, bringing total available liquidity to USD 3 769 million.

USD million

Interest-bearing debt

Total interest-bearing debt (incl. leasing) at end of the first quarter was USD 3 141 million, a decrease of USD 24 million compared to the previous period.

The Company has a solid financial position with a leverage ratio (NIBD including leasing/EBITDAX) of 0.3x at the end of the quarter, stable compared to the end of the previous quarter.

Interest bearing debt excl. leasing (x)	31 Mar 2023	31 Dec 2022	31 Mar 2022
Adjusted total interest-bearing debt / EBITDAX	0.4	0.3	0.6
Net interest-bearing debt / EBITDAX	0.3	0.3	0.5

	Total interest-bearing debt (TIBD)
--	------------------------------------	--	--

Interest bearing debt incl. leasing (USD million)	31 Mar 2023	31 Dec 2022	31 Mar 2022

Interest-bearing loans and borrowings	2 456	2 453	3 316
Interest-bearing loans, current	500	500	338
Lease liabilities, non-current	86	113	191
Lease liabilities, current	99	99	108
Adjusted total interest-bearing debt	3 141	3 165	3 954
Cash and cash equivalents	769	445	539
Adjusted NIBD	2 372	2 721	3 415
EBITDAX 4 quarters rolling	8 149	8 547	6 138
Adjusted total interest-bearing debt / EBITDAX	0.4	0.4	0.6
Net interest-bearing debt / EBITDAX	0.3	0.3	0.6

Condensed statement of cash flow

Cash flow from operating activities before tax

Cash flow from operating activities (CFFO) remained strong with USD 1 358 million reported in the first quarter, an increase of USD 915 million from the previous quarter mainly due to less taxes paid.

Free cash flow (FCF) of USD 715 million in the quarter, up from a negative USD 356 million in the previous quarter. The increase was driven by higher CFFO and lower capex.

Cash flow from operating activities (CFFO)

Condensed statement of cash flow – continued

Cash flows used in investing activities (USD million)	Q1 2023	Q4 2022	Q1 2022	FY 2022

Expenditures on exploration and evaluation assets	43	47	6	77
Expenditures on property, plant and equipment	599	753	615	2 516
Payment for decommissioning of oil and gas fields	7	15	29	70
Proceeds from sale of assets (sales price)	-	-	-	-
Expenditures on goodwill and other intangible assets	-	-	-	-
Net cash used on business combination	-	-	-	-
Total cash flows used in investing activities	650	814	650	2 663

Expenditures in the Balder Area, Johan Castberg and Grane totalled 73% of total expenditures on PP&E.

Expenditures on PP&E (USD million, %)	Q1 2023	Q1 2023	Q4 2022	Q4 2022	Q1 2022	Q1 2022

Balder area	299	50%	333	44%	299	49%
Johan Castberg	64	11%	79	11%	92	15%
Fenja	6	1%	10	1%	30	5%
Grane	72	12%	75	10%	45	7%
Snorre	13	2%	35	5%	24	4%
Statfjord area	32	5%	29	4%	28	5%
Sleipner area	1	-	2	-	3	-
Ekofisk area	18	3%	25	3%	25	4%
Goliat	30	5%	10	1%	6	1%
Tommeliten	13	2%	11	1%	8	1%
Other	50	8%	145	19%	55	9%
Total expenditures on PP&E	599	100%	753	100%	615	100%

Expenditures on PP&E, fourth quarter 2022

Condensed statement of cash flow – continued

Capex coverage	Q1 2023	Q4 2022	Q1 2022	FY 2022
Expenditures on exploration and evaluation assets	43	47	6	77
Expenditures on PP&E	599	753	615	2 516
Capex	642	800	621	2 593
CFFO	1 358	443	2 201	5 682
Capex coverage (x)	2.1	0.6	3.5	2.2

Cash flows from financing activities
(USD million)	Q1 2023	Q4 2022	Q1 2022	FY 2022
Dividends paid	(300)	(290)	-	(775)
Net proceeds from bond issue	-	1 967	-	2 464
Net proceeds/(payments) of revolving credit facility	-	(2 000)	(1 181)	(4 021)
Net proceeds/(payments) of reserve based lending facility	-	-	-	-
Payment of other loans and borrowings	-	(300)	-	(300)
Payment of principal portion of lease liability	(23)	(26)	(34)	(110)
Interest paid	(24)	(104)	(18)	(161)
Total cash flows used in investing activities	(348)	(753)	(1 233)	(2 903)

Net cash outflow from financing activities amounted to USD 348 million in the quarter and relates to the USD 300 million dividend payment, payment of interests and lease liabilities.

Outlook

Vår Energi has an ambition to deliver value-driven growth to support attractive and resilient long-term dividend distributions.

The Company's production guidance for 2023 is in the range of 210-230 kboepd.

For 2023, the Company expects development capex between USD 2 400–2 700 million and USD 250 million in exploration and abandonment capex.

Vår Energi's material cash flow generation and investment grade balance sheet support attractive and resilient distributions. For the second quarter of 2023, Vår Energi plans to pay a dividend of USD 270 million.

Vår Energi's policy is to distribute 20–30% of cash flow from operations after tax in shareholder returns. For 2023, the Company expects a dividend of approximately 30% of CFFO after tax.

To ensure continuous access to capital at competitive cost, retaining investment grade credit ratings is a priority for Vår Energi. As such, the Company targets a NIBD/EBITDAX of below 1.3x through the cycle.

Transactions with related parties

For details on transactions with related parties, see note 22 in the Financial Statements.

Subsequent events See note 24 in the Financial Statements.

Risks and uncertainty

Vår Energi is exposed to a variety of risks associated with our oil and gas operations on the NCS, exploration, reserve and resource estimates. Estimates for capital and operating cost expenditures are associated with uncertainty, and the production performance of oil and gas fields may vary over time.

The ripple effects of Russia's invasion of Ukraine, European energy crisis, US and EU monetary tightening causing economic slowdown and global inflation impacts market and financial risk, including, but non-exhaustive, commodity price fluctuations, exchange rates, interest rates and capital requirements. Vår Energi is also exposed to uncertainties relating to the capital markets and access to capital, this may influence the pace with which development projects can be brought on stream.

The Company's operational, financial, strategic, climate and compliance risks and the mitigation of these risks are described in the annual report for 2022, available on www.varenergi.no.

Alternative performance measures (APMs)

In this interim report, in order to enhance the understanding of the Group's performance and liquidity, Vår Energi presents certain alternative performance measures ("APMs") as defined by the European Securities and Markets Authority ("ESMA") in the ESMA Guidelines on Alternative Performance Measures 2015/1057.

Vår Energi presents the APMs: CAPEX, CAPEX Coverage, EBITDAX, EBITDAX Margin, Free Cash Flow, NIBD, Adjusted NIBD, NIBD/ EBITDAX Ratio, Adjusted NIBD/EBITDAX Ratio, TIBD/EBITDAX Ratio and Adjusted TIBD/EBITDAX Ratio.

The APMs are not measurements of performance under IFRS ("GAAP") and should not be considered to be an alternative to: (a) operating revenues or operating profit (as determined in accordance with GAAP), as a measure of Vår Energi's operating performance; or (b) any other measures of performance under GAAP. The APM presented herein may not be indicative of Vår Energi's historical operating results, nor is such measure meant to be predictive of the Group's future results.

Vår Energi believes that the APMs described herein are commonly reported by companies in the markets in which it competes and are widely used in comparing and analysing performance across companies within its industry.

The APMs used by Vår Energi are set out below (presented in alphabetical order):

"CAPEX" is defined by Vår Energi as expenditures on property, plant and equipment (PP&E) and expenditures on exploration and evaluation assets as presented in the cash flow statements within cash flow from investing activities.
"CAPEX Coverage" is defined by Vår Energi as cash flow from operating activities as presented in the cash flow statements ("CFFO"), as a ratio to CAPEX.
"EBITDAX" is defined by Vår Energi as profit/(loss) for the period before income tax (expense)/income, net financial items, net exchange rate gain/(loss), depreciation and amortisation, impairments and exploration expenses.
"EBITDAX margin" is defined by Vår Energi as EBITDAX and EBITDA as a percentage of total income, respectively.
"Free cash flow" ("FCF") is defined by Vår Energi as CFFO less CAPEX.
"Net interest-bearing debt" or "NIBD" is defined by Vår Energi as interest-bearing loans and borrowings and lease liabilities ("Total interest-bearing debt" or "TIBD") less cash and cash equivalents.
"Adjusted net interest-bearing debt" or "Adjusted NIBD" is defined by Vår Energi as TIBD excluding lease liabilities ("Adjusted total interest-bearing debt" or "Adjusted TIBD") less cash and cash equivalents.
"NIBD/EBITDAX" is defined by Vår Energi as NIBD as a ratio of EBITDAX.
"Adjusted NIBD/EBITDAX" is defined by Vår Energi as Adjusted NIBD as a ratio of EBITDAX.
"TIBD/EBITDAX" is defined by Vår Energi as interest-bearing loans and borrowings and lease liabilities as a ratio of EBITDAX.
"Adjusted TIBD/EBITDAX" is defined by Vår Energi as interest-bearing loans and borrowings (but excluding lease liabilities) as a ratio of EBITDAX.

EBITDA and EBITDAX

USD million	Q1 2023	Q4 2022	Q1 2022	FY 2022
Profit / (loss) for the period	195	488	431	936
Income tax (expense) / income	(1 081)	(1 305)	(1 296)	(4 919)
Net financial income / (expenses)	(30)	(19)	(29)	(116)
Net exchange rate gain / (loss)	(127)	281	6	(397)
Depreciation and amortisation	(340)	(332)	(441)	(1 448)
Impairment loss and reversals	-	(96)	11	(658)
EBITDA	1 773	1 960	2 180	8 475
Exploration expenses	(22)	(22)	(12)	(72)
EBITDAX	1 794	1 981	2 192	8 547
Total income	2 094	2 374	2 491	9 828
EBITDA margin	85%	83%	88%	86%
EBITDAX margin	86%	83%	88%	87%

Financial statements with note disclosures

	Unaudited statement of comprehensive income	24	Note 11	Impairment	42
	Unaudited balance sheet statement	25	Note 12	Trade receivables	44
	Unaudited statement of changes in equity	27	Note 13	Other current receivables and financial assets	44
	Unaudited statement of cash flows	28	Note 14	Financial instruments	45
Notes		30	Note 15	Cash and cash equivalents	47
Note 1	Summary of IFRS accounting principles and prior year restatements	31	Note 16	Share capital and shareholders	47
Note 2	Income	33	Note 17	Financial liabilities and borrowings	48
Note 3	Production costs	34
Note 4	Other operating expenses	35	Note 18	Asset retirement obligations	49
Note 5	Exploration expenses	35	Note 19	Other current liabilities	49
Note 6	Financial items	36	Note 20	Commitments, provisions and contingent consideration	49
Note 7	Income taxes	37	Note 21	Lease agreements	50
Note 8	Intangible assets	39	Note 22	Related party transactions	51
Note 9	Tangible assets	40	Note 23	License ownerships	52
Note 10	Right of use assets	41	Note 24	Subsequent events	53

Unaudited statement of comprehensive income

				Restated		Restated
USD 1000	Note	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022
Petroleum revenues	2	2 089 383	2 354 471	2 482 788	2 089 383	2 482 788
Other operating income		4 492	19 479	7 720	4 492	7 720
Total income		2 093 875	2 373 951	2 490 508	2 093 875	2 490 508
Production costs	1, 3	(252 268)	(345 223)	(265 586)	(252 268)	(265 586)
Exploration expenses	5, 8	(21 668)	(21 660)	(12 077)	(21 668)	(12 077)
Depreciation and amortisation	9, 10	(340 323)	(332 433)	(441 239)	(340 323)	(441 239)
Impairment loss and reversals	8, 9, 11	-	(96 255)	10 865	-	10 865
Other operating expenses	4	(47 180)	(47 236)	(32 912)	(47 180)	(32 912)
Total operating expenses		(661 439)	(842 807)	(740 949)	(661 439)	(740 949)
Operating profit / (loss)		1 432 435	1 531 144	1 749 559	1 432 435	1 749 559
Net financial income / (expenses)	6	(29 598)	(19 424)	(28 886)	(29 598)	(28 886)
Net exchange rate gain / (loss)	6	(126 784)	281 461	5 877	(126 784)	5 877
Profit/(loss) before taxes		1 276 053	1 793 181	1 726 550	1 276 053	1 726 550
Income tax (expense) / income	1, 7	(1 081 093)	(1 305 149)	(1 295 779)	(1 081 093)	(1 295 779)
Profit / (loss) for the period		194 961	488 032	430 771	194 961	430 771
Other comprehensive income:
Items that may be reclassified subsequently to the income statement:
Currency translation differences		(86 418)	114 075	16 247	(86 418)	16 247
Net gain / (loss) on put options used for hedging		(104)	2 682	(2 370)	(104)	(2 370)
Other comprehensive income for the period, net of tax		(86 523)	116 757	13 877	(86 523)	13 877
Total comprehensive income		108 438	604 789	444 648	108 438	444 648

Earnings per share
EPS Basic	1, 16	0.08	0.20	0.17	0.08	0.17
EPS Diluted	1, 16	0.08	0.20	0.17	0.08	0.17

Unaudited balance sheet statement

				Restated
USD 1000	Note	31 Mar 2023	31 Dec 2022	31 Mar 2022
ASSETS
Non-current assets
Intangible assets
Goodwill	8	1 900 025	2 019 512	2 552 592
Capitalised exploration wells	8	243 811	225 287	202 769
Other intangible assets	8	80 644	93 515	105 374
Tangible fixed assets
Property, plant and equipment	9	14 110 732	14 562 237	15 803 767
Right of use assets	10	142 298	175 423	272 741
Financial assets
Investment in shares		718	763	860
Other non-current assets		302	532	1 517
Total non-current assets		16 478 529	17 077 268	18 939 620
Current assets
Inventories		262 734	265 811	313 391
Trade receivables	12, 22	490 430	796 317	499 468
Other current receivables and financial assets	1, 13	257 478	213 286	300 369
Cash and cash equivalents	15	768 843	444 607	538 739
Total current assets		1 779 485	1 720 020	1 651 968
TOTAL ASSETS		18 258 014	18 797 288	20 591 588

Unaudited balance sheet statement – continued

						Torger Rød
Total liabilities		16 968 732	17 315 718	18 631 111
Total current liabilities		3 227 275	3 309 154	3 258 830	Director, employee representative	Director, employee representative
Other current liabilities	1, 19	466 625	503 019	557 344	Bjørn Nysted	Jan Inge Nesheim
Lease liabilities, current	21	98 684	99 312	108 458
Interest-bearing loans, current	17	500 000	500 000	337 816
Taxes payable	7	1 845 929	1 778 222	1 802 687	Director, employee representative	Director, employee representative
Accounts payables	22	257 638	368 589	416 973	Martha Skjæveland	Hege Susanne Blåsternes
Asset retirement obligations, current	18	58 400	60 012	35 552
Current liabilities					Director	Director
Total non-current liabilities		13 741 457	14 006 564	15 372 281	Fabio Ignazio Romeo	Ove Gusevik
Other non-current liabilities		153 289	156 544	162 642
Lease liabilities, non-current	21	86 151	113 334	191 341
Asset retirement obligations	18	3 070 552	3 156 126	3 552 873	Clara Andreoletti Director	Marica Calabrese Director
Deferred tax liabilities	7, 1	7 975 099	8 127 971	8 149 368
Interest-bearing loans and borrowings	17	2 456 366	2 452 589	3 316 057
Non-current liabilities					Francesco Gattei Director	Guido Brusco Director
Total equity		1 289 282	1 481 571	1 960 476
Other equity	1	(324 870)	(432 582)	(728 676)
Share premium		1 568 181	1 868 181	2 643 181	Chair	Deputy Chair
Share capital	16	45 972	45 972	45 972	Thorhild Widvey	Liv Monica Bargem Stubholt
Equity
EQUITY AND LIABILITIES
USD 1000	Note	31 Mar 2023	31 Dec 2022	31 Mar 2022
				Restated	Sandnes, 21 April 2023 Signed Electronically

Unaudited statement of changes in equity

					Other equity
					Translation
USD 1000	Note	Share capital	Share premium	Other equity	differences	Hedge reserve	Total equity
Balance at 1 January 2022		45 972	2 643 181	(928 860)	(222 647)	(21 818)	1 515 828
Profit / (loss) for the period		-	-	430 771	-	-	430 771
Other comprehensive income / (loss)		-	-	-	16 247	(2 370)	13 877
Total comprehensive income / (loss)		-	-	430 771	16 247	(2 370)	444 648
Dividends paid		-	-	-	-	-	-
Balance at 31 March 2022		45 972	2 643 181	(498 089)	(206 399)	(24 188)	1 960 476
Balance at 31 March 2022		45 972	2 643 181	(498 089)	(206 399)	(24 188)	1 960 476
Profit / (loss) for the period		-	-	505 631	-	-	505 631
Other comprehensive income / (loss)		-	-	-	(219 481)	7 543	(211 938)
Total comprehensive income / (loss)		-	-	505 631	(219 481)	7 543	293 693
Dividends paid		-	(775 000)	-	-	-	(775 000)
Share-based payments		-	-	2 401	-	-	2 401
Balance at 31 December 2022		45 972	1 868 181	9 943	(425 880)	(16 644)	1 481 571
Balance at 31 December 2022		45 972	1 868 181	9 943	(425 880)	(16 644)	1 481 571
Profit / (loss) for the period		-	-	194 961	-	-	194 961
Other comprehensive income / (loss)		-	-	-	(86 418)	(104)	(86 523)
Total comprehensive income / (loss)		-	-	194 961	(86 418)	(104)	108 438
Dividends paid		-	(300 000)	-	-	-	(300 000)
Share-based payments	16	-	-	1 023	-	-	1 023
Other		-	-	(1 749)	-	-	(1 749)
Balance at 31 March 2023		45 972	1 568 181	204 177	(512 299)	(16 749)	1 289 282

Unaudited statement of cash flows

				Restated		Restated
USD 1000	Note	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022
Profit / (loss) before income taxes	1	1 276 054	1 793 181	1 726 550	1 276 054	1 726 550
Adjustments to reconcile profit before tax to net cash flows:
- Depreciation and amortisation	9, 10	340 323	332 433	441 239	340 323	441 239
- Impairment loss and reversals	8, 9	-	96 255	(10 865)	-	(10 865)
- (Gain) / loss on sale and retirement of assets	2	8 273	32 021	-	8 273	-
- Expensed capitalised dry wells	5, 8	17 073	5 194	5 098	17 073	5 098
- Accretion expenses (asset retirement obligation)	6, 18	24 377	24 366	24 282	24 377	24 282
- Unrealised (gain) / loss on foreign currency transactions and balances	6	174 557	(559 643)	(28 037)	174 557	(28 037)
- Other non-cash items and reclassifications		(24 935)	303 067	33 842	(24 935)	33 842
Working capital adjustments:		-	-	-		-
- Changes in inventories, accounts payable and receivables		186 543	(33 076)	231 642	186 543	231 642
- Changes in other current balance sheet items	13, 19	(67 410)	99 907	(39 904)	(67 410)	(39 904)
Income tax received / (paid)	7	(577 326)	(1 650 439)	(183 309)	(577 326)	(183 309)
Net cash flows from operating activities		1 357 529	443 265	2 200 538	1 357 529	2 200 538
Cash flows from investing activities
Expenditures on exploration and evaluation assets	8	(43 010)	(46 969)	(6 233)	(43 010)	(6 233)
Expenditures on property, plant and equipment	9	(599 420)	(752 623)	(615 206)	(599 420)	(615 206)
Payment for decommissioning of oil and gas fields	18	(7 129)	(14 814)	(28 839)	(7 129)	(28 839)
Proceeds from sale of assets (sales price)		-	-	-	-	-
Net cash used in investing activities		(649 559)	(814 407)	(650 278)	(649 559)	(650 278)

Unaudited statement of cash flows – continued

				Restated		Restated
USD 1000	Note	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022
Cash flows from financing activities
Dividends paid		(300 000)	(290 000)	-	(300 000)	-
Net proceeds from bond issue		-	1 966 617	-	-	-
Net proceeds/(payments) of revolving credit facilities	17	-	(2 000 000)	(1 180 500)	-	(1 180 500)
Payment of other loans and borrowings	17	-	(300 000)	-	-	-
Payment of principal portion of lease liability	21	(23 488)	(25 570)	(34 215)	(23 488)	(34 215)
Interest paid	1	(24 101)	(104 122)	(18 381)	(24 101)	(18 381)
Net cash from financing activities		(347 589)	(753 075)	(1 233 096)	(347 589)	(1 233 096)
Net change in cash and cash equivalents		360 381	(1 124 217)	317 163	360 381	317 163
Cash and cash equivalents, beginning of period		444 607	1 499 006	223 588	444 607	223 588
Effect of exchange rate fluctuations		(36 145)	69 818	(2 012)	(36 145)	(2 012)
Cash and cash equivalents, end of period		768 843	444 607	538 739	768 843	538 739

Notes

(All figures in USD 1000 unless otherwise stated)

The interim condensed financial statements for the period ended 31 March 2023 have been prepared in accordance with IAS 34 Interim Financial Reporting. Thus the interim financial statements do not include all information required by IFRSs and should be read in conjunction with the 2022 annual financial statements. The interim financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the financial position, results of operations and cash flows for the dates and interim periods presented. Interim period results are not necessarily indicative of results of operations or cash flows for an annual period. These interim financial statements have not been subject to review or audit by independent auditors.

These interim financial statements were authorised for issue by the Company Board of Directors on 21 April 2023

Note 1 Summary of IFRS accounting principles and prior year restatements

The accounting principles adopted in the preparation of the interim condensed financial statements are consistent with those followed in the preparation of the annual financial statements for the year ended 31 December 2022. Vår Energi has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

Restatement of interest paid in cash flow statement

Vår Energi decided to change its accounting principles related to presentation of interest payments in the cash flows statement during second quarter 2022. Interest payment have been restated to financing activities in the statement of cash flows. In prior reporting periods, these cash flows were presented as operational activities. The reason behind the change is that interest payments are directly linked to Vår Energi's financing activities and are thus deemed more relevant to include under financing activities. Comparative figures have been restated accordingly and the impact on relevant comparison periods is included in the table below.

USD 1000
Restating impact on Statement of Cash Flow	Q1 2022
Net cash flows from operating activities
Before restatement	2 182 157
Impact of restatement	18 381
After restatement	2 200 538

Net cash from financing activities
Before restatement	(1 214 715)
Impact of restatement	(18 381)
After restatement	(1 233 096)

Note 1 Summary of IFRS accounting principles and restatements – continued

Restatement of over/underlift

Vår Energi corrected calculation of over/underlift of NGL lifted at the Kårstø terminal during second quarter 2022 due to data quality issues in allocation of liftings at field level.

Effecting from fourth quarter 2022, Vår Energi changed its accounting policy for measurement of overlift to measure both over/underlift at cost. Vår Energi believes this provides more relevant information about financial performance and financial position of the Company and makes Vår Energi more comparable to peer companies on the NCS.

Comparative figures have been restated accordingly and the impact on relevant comparison periods is included in the table below.

USD 1000
Restating impact on Balance Sheet Statement	Note	31 Mar 2022

Underlift before restatement		182 563
Impact of restatement		(76 083)
Underlift after restatement	13	106 480

Overlift before restatement		392 087
Impact of restatement		(351 354)
Overlift after restatement	19	40 733

Equity before restatement		1 899 917
Impact of restatement		60 559
Equity after restatement		1 960 476

Deferred tax before restatement		7 934 656
Impact of restatement		214 712
Deferred tax after restatement	7	8 149 368

USD 1000
Restating impact on Statement of Comprehensive Income	Note	Q1 2022

Adjustment of (over)/under lift before restatement		(67 687)
Impact of restatement		75 351
Adjustment of (over)/under lift after restatement	3	7 664

Income tax (expense) / income before restatement		(1 237 005)
Impact of restatement		(58 774)
Income tax (expense) / income after restatement	7	(1 295 779)

Note 2 Income

Petroleum revenues (USD 1000)	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022
Revenue from crude oil sales	881 069	1 092 302	1 237 876	881 069	1 237 876
Revenue from gas sales	1	1	1	1	1
	160	191	157	160	157
	970	916	688	970	688
Revenue from NGL sales	47	70	87	47	87
	344	254	224	344	224
Total petroleum revenues	2	2	2	2	2
	089	354	482	089	482
	383	471	788	383	788

Sales of crude (boe 1000)	10	12	12	10	12
	542	614	433	542	433
Sales of gas (boe 1000)	6	6	7	6	7
	615	565	087	615	087
Sales of NGL (boe 1000)	875	1 285	1 201	875	1 201

Note 3 Production costs

				Restated		Restated
USD 1000	Note	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022

Cost of operations		157 348	189 924	162 057	157 348	162 057
Transportation and processing		48 276	42 169	58 260	48 276	58 260
Environmental taxes		30 278	30 714	34 154	30 278	34 154
Insurance premium		16 175	15 872	9 300	16 175	9 300
Production cost based on produced volumes		252 078	278 679	263 771	252 078	263 771

Back-up cost shuttle tankers		746	7 959	(1 164)	746	(1 164)
Changes in over/(underlift)	1	(9 902)	48 774	(7 664)	(9 902)	(7 664)
Premium expense for crude put options	14	9 347	9 810	10 642	9 347	10 642
Production cost based on sold volumes		252 268	345 223	265 586	252 268	265 586

Total produced volumes (boe 1000)		19 298	19 718	21 775	19 298	21 775
Production cost per boe produced (USD/boe)		13.1	14.1	12.1	13.1	12.1

The changes in over/(underlift) are due to timing of liftings vs. production.

Note 4 Other operating expenses

USD 1000	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022

R&D expenses	16	(3	15	16	15
	046	963)	830	046	830
Pre-production costs	10	7	6	10	6
	821	558	192	821	192
Guarantee fee decommissioning obligation	5	3	4	5	4
	068	686	877	068	877
Administration expenses	6	7	6	6	6
	964	051	014	964	014
Other expenses	8 280	32 905	-	8 280	-
Total other operating expenses	47	47	32	47	32
	180	236	912	180	912

Other expenses mainly include disposal of the Barents Blue project in 1Q 2023.

Note 5 Exploration expenses

USD 1000	Note	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022

Seismic		(409)	2 756	303	(409)	303
Area Fee		2 299	1 778	1 900	2 299	1 900
Dry well expenses	8	17 073	5 194	5 099	17 073	5 099
Other exploration expenses		2 704	11 932	4 774	2 704	4 774
Total exploration expenses		21 668	21 660	12 077	21 668	12 077

Dry well expenses in Q1 2023 are mainly related to the PL554 well 34/6-6 Angulata Brent.

Note 6 Financial items

USD 1000	Note	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022
Other financial income		2 649	6 240	350	2 649	350
Interests on debts and borrowings	17	(57 688)	(51 387)	(19 983)	(57 688)	(19 983)
Interest on lease debt		(1 803)	(2 162)	(3 227)	(1 803)	(3 227)
Capitalised interest cost, development projects		57 476	62 041	21 471	57 476	21 471
Amortisation of fees and expenses		(3 705)	(8 324)	(2 789)	(3 705)	(2 789)
Accretion expenses (asset retirement obligation)	18	(24 377)	(24 366)	(24 282)	(24 377)	(24 282)
Other financial expenses		(2 150)	(1 465)	(425)	(2 150)	(425)
Net financial income / (expenses)		(29 598)	(19 424)	(28 886)	(29 598)	(28 886)
Unrealised exchange rate gain / (loss)		(174 557)	559 643	28 037	(174 557)	28 037
Realised exchange rate gain / (loss)		47 773	(278 181)	(22 160)	47 773	(22 160)
Net exchange rate gain / (loss)		(126 784)	281 461	5 877	(126 784)	5 877
Net financial items		(156 382)	262 038	(23 009)	(156 382)	(23 009)

Vår Energi's functional currency is NOK, whilst interest bearing loans and bonds are in USD. The weakening of NOK against USD during Q1 2023 caused unrealised exchange rate losses of USD 181 million related to loans and bonds.

Note 7 Income taxes

			Restated		Restated
USD 1000	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022

Current period tax payable / (receivable)	745 640	849 850	1 163 800	745 640	1 163 800
Prior period adjustments to current tax	1	12 891	2 051	1	2 051
Current tax expense / (income)	745 641	862 741	1 165 851	745 641	1 165 851

Deferred tax expense / (income)	335 452	442 408	129 928	335 452	129 928
Tax expense / (income) in profit and loss	1 081 093	1 305 149	1 295 779	1 081 093	1 295 779
Effective tax rate in %	85%	73%	75%	85%	75%
Tax expense / (income) in put option used for hedging	(351)	(1 065)	(668)	(351)	(668)
Tax expense / (income) in other comprehensive income	1 080 742	1 304 085	1 295 111	1 080 742	1 295 111

				Restated		Restated
Reconciliation of tax expense	Tax rate	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022

Marginal (78%) tax rate on profit / loss before tax	78%	995 372	1 398 753	1 346 709	995 372	1 346 709
Tax effect of uplift	71.8%	(10 479)	(63 676)	(50 203)	(10 479)	(50 203)
Tax effects of new legislation on uplift		-	-	(10 476)	-	(10 476)
Impairment of goodwill	78%	-	1 494	-	-	-
Tax effects of items taxed at other than marginal (78%) tax rate 1	56%	90 634	(59 302)	7 565	90 634	7 565
Tax effects of new legislation on other items		-	30 404	-	-	-
Other permanent differences, prior period adjustments and change in estimates of uncertain tax positions	78%	5 565	(2 523)	2 184	5 565	2 184
Tax expense / (Income)		1 081 093	1 305 149	1 295 779	1 081 093	1 295 779

¹ The effects of items taxed at other than marginal (78%) tax rate are mainly impacted by fluctuation in currency exchange rate on the company's external borrowings and working capital.

Note 7 Income taxes – continued

			Restated		Restated
Deferred tax asset / (liability)	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022

Deferred tax asset / (liability) at beginning of period	(8 127 971)	(6 968 812)	(7 953 676)	(8 127 971)	(7 953 676)
Current period deferred tax income / (expense)	(335 452)	(442 408)	(129 928)	(335 452)	(129 928)
Deferred taxes recognised directly in OCI or equity	351	1 065	668	351	668
Currency translation effects	487 973	(717 815)	(66 433)	487 973	(66 433)
Net deferred tax asset / (liability) as of closing balance	(7 975 099)	(8 127 971)	(8 149 368)	(7 975 099)	(8 149 368)

			Restated		Restated
Calculated tax (payable) / receivable	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022
Tax (payable) / receivable at beginning of period	(1 778 222)	(2 378 317)	(801 432)	(1 778 222)	(801 432)
Current period payable taxes	(745 640)	(849 850)	(1 163 800)	(745 640)	(1 163 800)
Payable taxes related to business combinations	-	-	-	-	-
Net tax payment / (tax refund)	577 326	1 650 439	183 309	577 326	183 309
Prior period adjustments and change in estimate of uncertain tax positions	(1)	(12 891)	(2 051)	(1)	(2 051)
Currency translation effects	100 607	(187 602)	(18 714)	100 607	(18 714)
Net tax (payable) / receivable as of closing balance	(1 845 929)	(1 778 222)	(1 802 687)	(1 845 929)	(1 802 687)

Note 8 Intangible assets

		225 287	2 338 314

(2 462 426)	-	-	(2 462 426)
250 980	-	-	250 980
(235 913)	-	-	(235 913)
(2 477 492)	-	-	(2 477 492)
4 481 939	93 515	225 287	4 800 740
(527 451)	(11 005)	(21 145)	(559 601)
-	-	(30 600)	(30 600)
-	-	77 050	77 050
5 009 390	104 520	199 981	5 313 891
Goodwill	assets	wells	Total
	Other intangible	Capitalised exploration
		2 019 512 93 515

			Other	Capitalised
USD 1000	Note	Goodwill	intangible assets	exploration wells	Total

Cost as at 1 January 2023		4 481 939	93 515	225 287	4 800 740
Additions		-	-	43 010	43 010
Additions through business combination		-	-	-	-
Reclassification		-	(7 292)	7 292	-
Disposals / expensed exploration wells	5	-	-	(17 073)	(17 073)
Currency translation effects		(265 181)	(5 578)	(14 705)	(285 465)
Cost as at 31 March 2023		4 216 758	80 644	243 811	4 541 212

Depreciation and impairment as 1 January 2023		(2 462 426)	-	-	(2 462 426)
Depreciation		-	-	-	-
Impairment loss	11	-	-	-	-
Disposals		-	-	-	-
Currency translation effects		145 693	-	-	145 693
Depreciation and impairment as at 31 March 2023		(2 316 733)	-	-	(2 316 733)

Net book value as at 31 March 2023		1 900 025	80 644	243 811	2 224 479

Other intangible assets include exploration potentials acquired through business combinations and measured according to the successful efforts method.

Note 9 Tangible assets

		Wells and		Other property,
		production	Facilities under	plant and
USD 1000	Note	facilities	construction	equipment	Total

Cost as at 1 January 2022		14 617 577	5 113 429	39 350	19 770 356
Additions		665 016	1 832 590	18 491	2 516 097
Estimate change asset retirement cost	18	266 380	-	-	266 380
Reclassification		143 700	(29 043)	-	114 657
Currency translation effects		(1 582 375)	(577 449)	(4 253)	(2 164 077)
Cost as at 31 December 2022		14 110 298	6 307 507	53 587	20 471 393

Depreciation and impairment as at 1 January 2022		(4 567 768)	-	(13 671)	(4 581 439)
Depreciation		(1 408 863)	(74)	(9 180)	(1 418 117)
Impairment reversal / (loss)		(422 008)	-	-	(422 008)
Currency translation effects		510 825	1	1 583	512 408
Depreciation and impairment as at 31 December 2022		(5 887 814)	(73)	(21 268)	(5 909 156)

Net book value as at 31 December 2022		8 222 484	6 307 434	32 319	14 562 237

Capitalised interests for facilities under construction were USD 60 337 thousand in forth quarter 2022 and USD 57 694 thousand in first quarter 2023.

Rate used for capitalisation of interests was 3.8% in forth quarter 2022 and 7.78% in the first quarter 2023.

USD 1000	Note	Wells and production facilities	Facilities under construction	Other property, plant and equipment	Total
Cost as at 1 January 2023		14 110 298	6 307 507	53 587	20 471 393
Additions		226 168	424 496	4 263	654 927
Estimate change asset retirement cost	18	85 815	-	-	85 815
Reclassification		28 578	(10 695)	-	17 883
Disposals		-	(8 273)	-	(8 273)
Currency translation effects		(839 321)	(381 591)	(3 237)	(1 224 149)
Cost as at 31 March 2023		13 611 538	6 331 444	54 613	19 997 595

Depreciation and impairment as at 1 January 2023		(5 887 814)	(73)	(21 268)	(5 909 156)
Depreciation		(332 212)	(8)	(2 708)	(334 928)
Impairment reversal / (loss)	11	-	-	-	-
Currency translation effects		355 891	12	1 318	357 221
Depreciation and impairment as at 31 March 2023		(5 864 135)	(69)	(22 659)	(5 886 863)

Net book value as at 31 March 2023		7 747 403	6 331 375	31 954	14 110 732

Note 10 Right of use assets

		Rigs, helicopters
USD 1000	Offices	and supply vessels	Warehouse	Total

Cost as at 1 January 2022	75 830	304 183	13 546	393 558
Additions	4 081	2 596	-	6 677
Reclassification	-	(73 006)	-	(73 006)
Currency translation effects	(13 178)	(28 473)	1 610	(40 042)
Cost as at 31 December 2022	66 732	205 300	15 155	287 188

Depreciation and impairment as at 1 January 2022	(15 707)	(72 924)	(6 496)	(95 126)
Depreciation	(4 091)	(23 748)	(2 010)	(29 849)
Currency translation effects	2 115	10 486	609	13 211
Depreciation and impairment as at 31 December 2022	(17 683)	(86 186)	(7 896)	(111 765)

Net book value as at 31 December 2022	49 049	119 114	7 259	175 423

	Rigs, helicopters and
USD 1000	Offices	supply vessels	Warehouse	Total

Cost as at 1 January 2023	66 732	205 300	15 155	287 188
Reclassification	-	(17 883)	-	(17 883)
Currency translation effects	(4 197)	(11 435)	(953)	(16 585)
Cost as at 31 March 2023	62 536	175 982	14 202	252 720

Depreciation and impairment as at 1 January 2023	(17 683)	(86 186)	(7 896)	(111 765)
Depreciation	(1 229)	(3 406)	(760)	(5 395)
Currency translation effects	1 535	4 253	949	6 737
Depreciation and impairment as at 31 March 2023	(17 377)	(85 338)	(7 707)	(110 423)

Net book value as at 31 March 2023	45 158	90 644	6 495	142 298

Note 11 Impairment

Impairment testing

Impairment tests of individual cash-generating units (CGUs) are performed quarterly when impairment triggers are identified. Due to lower gas price assumptions vs. year-end 2022, a full impairment testing of fixed assets and related intangible assets were performed as of 31 March 2023.

No impairments nor reversals of historical impairments were identified per 31 March 2023.

Key assumptions applied for impairment testing purposes as of 31 March 2023 are based on Vår Energi's macroeconomic assumptions. Below is an overview of the key assumptions applied:

Prices

The oil and gas prices are based on the forward curve for the next three-year period and from the fourth year the oil and gas prices are based on the company's long-term price assumptions. Vår Energi's long term oil price assumption is 70 USD/BBL (real) and long-term gas price assumption is 56.2 USD/BOE (real).

The nominal oil prices (USD/BBL) applied in the impairment tests are as follows:

Year	31 Dec 2022	31 Mar 2023

2023	80.1	76.8
2024	75.5	73.7
2025	75.3	74.6

The nominal gas prices (USD/BOE) applied in the impairment tests are as follows:

Year	31 Dec 2022	31 Mar 2023

2023	132.4	98.6
2024	106.0	84.8
2025	70.4	67.1

Note 11 Impairment – continued

Oil and gas reserves

Future cash flows are calculated based on expected production profiles and estimated proven, probable and risked possible reserves. Production profiles per 31 Mar 2023 were unchanged vs. year-end 2022 profiles.

Future expenditure

Future capex, opex and abandonment cost are calculated based on the expected production profiles and the best estimate of the related cost. Limited change vs. year-end 2022.

Discount rate

The post tax nominal discount rate used is 8.0 percent, unchanged vs. year-end 2022.

Currency rates

The currency rates used are 10.00 NOK/USD for 2023 and 9.00 NOK/USD from 2024 onwards. Euro currency rate of 9.90 NOK/EUR used for both short and long term.

Inflation

Inflation is assumed to be 2% per year.

Sensitivity analysis

The table below shows how the impairment or reversal of impairment of assets and technical goodwill would be affected by changes in the various assumptions, given that the remaining assumptions are constant.

		Change in impairment after
		Increase in	Decrease in
Assumption USD 1000	Change	assumption	assumption

Oil and gas prices	+/-25%	(378 000)	2 409 000
Production profile	+/- 5%	(376 000)	438 000
Discount rate	+/- 1% point	187 000	(196 000)

The sensitivities are created for illustration purposes, based on a simplified method and assumes no changes in other input factors. Significant reductions are likely to result in changes in business plans, cut-offs as well as other factors used when estimating an asset's recoverable amount. Changes in such input factors would likely significantly reduce the actual impairment amount compared to the illustrative sensitivity above. The impact of the sensitivities is mainly related to the Balder Area.

Climate related risks

The climate related risk assessment is generally described in the company's sustainability reporting and in the annual report. Financial reporting and impairment testing includes a step up of CO2 tax/fees from current levels to approximately NOK 2 000 per ton in 2030.

Note 12 Trade receivables

USD 1000	Note	31 Mar 2023	31 Dec 2022	31 Mar 2022

Trade receivables - related parties	22	289 876	478 714	465 067
Trade receivables - external parties		265 787	382 405	412 437
Sale of trade receivables		(65 233)	(64 802)	(378 036)
Total trade receivables		490 430	796 317	499 468

Vår Energi has Credit Discount Agreements with several banks. Under the arrangements the ownership, including credit risk, of invoices for oil cargos sold are transferred to the respective banks, and the receivables to which the payments relate are derecognised from Vår Energi's balance sheet. Payments to the banks are made when Vår Energi receives payments from the customers.

Trade receivables are presented net of payments received from the banks for the sold invoices, as Vår Energi has retained the right to receive payments from the customers and obligation to pay these cash flows to the banks without material delay, but only to the extent Vår Energi collects the payments from the customers.

Note 13 Other current receivables and financial assets

USD 1000	Note	31 Mar 2023	31 Dec 2022	Restated 31 Mar 2022

Net underlift of hydrocarbons	1	106 756	101 889	106 480
Prepaid expenses		43 003	30 672	46 787
Brent crude put options - financial assets	14	14 847	14 805	10 145
Other		92 873	65 920	136 957
Total other current receivables and financial assets		257 478	213 286	300 369

Note 14 Financial instruments

Derivative financial instruments

Vår Energi uses derivative financial instruments, such as Brent crude put options to hedge its commodity price risks.

As of 31 March 2022 and 31 March 2023, Vår Energi had the following volumes of Brent crude oil put options in place and with the following strike prices:

Hedging instruments	Volume (no of put options outstanding at balance sheet date) in thousands (BBL)	Excercise price (USD per BBL)
Brent crude oil put options 31.03.2022, exercisable in 2022	10 655	47
Brent crude oil put options 31.03.2022, exercisable in 2023	2 409	50
Brent crude oil put options 31.03.2023, exercisable in 2023	10 425	50
Brent crude oil put options 31.03.2023, exercisable in 2024	4 050	50

Brent crude put options – financial assets

USD 1000	Q1 2023	2022	Q1 2022

The beginning of the period	14	17	17
	805	407	407
New Brent crude put options	9	36	6
	474	143	576
Change in fair value	(9	(38	(13
	432)	745)	838)
The end of the period	14	14	10
	847	805	145

As of 31 March 2023, the fair value of outstanding Brent Crude oil put options amounted to USD 14 847 thousand. Unrealised gains and losses are recognised in OCI. Note that the cost price (time value agreed at the inception of the contracts) for the options is paid at the time of realisation (time of exercise or expiration) and that this deferred payment is presented as current liabilities in the balance sheet, see below table.

Brent crude put options – deferred premiums

USD 1000	Note	Q1 2023	2022	Q1 2022

The beginning of the period		(36 143)	(39 339)	(39 339)
Settlement	3	9 347	39 540	10 642
New Brent crude put options		(9 474)	(36 143)	(6 576)
FX-effect		(49)	(200)	(22)
The end of the period		(36 320)	(36 143)	(35 295)

The full intrinsic value ("in the money value") of the options at the time of expiry, if any, is presented in petroleum revenues. The premiums paid for the put options are accounted for as cost of hedging and recycled from OCI to the income statement in the period in which the hedged revenues are realised, and presented as production costs.

Note 14 Financial instruments - continued

Change in Hedge Reserve

USD 1000	Q1 2023	2022	Q1 2022
The beginning of the period	(21 338)	(21 932)	(21 932)
Realised cost of hedge	9 298	39 339	10 620
Brent crude put options - financial assets	(9 432)	(38 745)	(13 838)
The end of the period	(21 472)	(21 338)	(25 150)

End of period Q1 2023 after tax balance is USD 16 749 thousand.

Reconciliation of liabilities arising from financing activities

The table below shows a reconciliation between the opening and the closing balances in the statement of financial position for liabilities arising from financing activities.

			Non-cash changes
			Amortisation/
USD 1000	31 Dec 2022	Cash flows	Accretion	Currency	Other	31 Mar 2023

Long-term interest-bearing debt	-	-	-	-	-	-
Short-term interest-bearing debt	500 000	-	-	-	-	500 000
Bond USD Senior Notes	2 500 000	-	-	-	-	2 500 000
Prepaid loan expenses	(47 411)	-	3 705	72	-	(43 634)
Totals	2 952 589	-	3 705	72	-	2 956 366

Note 15 Cash and cash equivalents

USD 1000	31 Mar 2023	31 Dec 2022	31 Mar 2022
Bank deposits, unrestricted Bank deposit, restricted, employee taxes	763 811 5 032	434 693 9 914	521 472 17 267
Total bank deposits	768 843	444 607	538 739

Note 16 Share capital and shareholders

Vår Energi ASA was listed on the Oslo Stock Exchange 16 February 2022, and as a consequence of this, company bylaws, voting rights and composition of the board was changed.

As of 31 March 2023, the total share capital of the company is USD 45 972 thousand or NOK 399 425 thousand. The share capital is divided into 2 496 406 246 ordinary shares and 4 Class B shares. Each share has a nominal value of NOK 0.16. The ordinary shares represent NOK 399 424 999.36 of the total share capital, while the Class B shares represent NOK 0.64 of the total share capital.

All shares rank pari passu and have equal rights in all respect, including with respect to voting rights and dividends and other distributions, except from the class B shares. 4 members to the board, will be elected by the general meeting with a simple majority among the votes cast for Class B shares. Such number to be reduced if the holder of the Class B shares holds less shares of the company.

Earnings per share are calculated by dividing the net result attributable to shareholders of by the number of shares.

Vår Energi ASA's share saving program gives employees the opportunity to buy shares in Vår Energi ASA through monthly salary deductions. If the shares are retained for two full calendar years with continuous employment after the end of the saving year, the employees will be awarded a bonus share for each share they have purchased. This will be settled by Vår Energi ASA buying shares in the market. The award is treated as equity settled, hence it will not affect earnings per share.

Note 17 Financial liabilities and borrowings

Interest-bearing loans and borrowings

USD 1000	Coupon/ Int. Rate	Maturity	31 Mar 2023	31 Dec 2022	31 Mar 2022

Bond USD Senior Notes (22/27)	5.00%		500 000	500 000	-
Bond USD Senior Notes (22/28)	7.50%		1 000 000	1 000 000	-
Bond USD Senior Notes (22/32)	8.00%		1 000 000	1 000 000	-
Bridge credit facility	1.25%+SOFR +CAS	Nov 2023	500 000	500 000	3 000 000
RCF Working capital facility	1.08%+SOFR +CAS	Nov 2024	-	-	340 000
RCF Liquidity facility	1.13%+SOFR +CAS	Nov 2026	-	-	-
Deferred payment ExxonMobil			-	-	337 816
Prepaid loan expenses			(43 634)	(47 411)	(23 943)
Total interest-bearing loans and borrowings			2 956 366	2 952 589	3 653 873

Of which current and non-current:
Interest-bearing loans, current			500 000	500 000	337 816
Interest-bearing loans and borrowings			2 456 366	2 452 589	3 316 057

Credit facilities – utilised and unused amount

USD 1000	31 Mar 2023	31 Dec 2022	31 Mar 2022

Drawn amount credit facility	500 000	500 000	3 340 000
Undrawn amount credit facilities	3 000 000	3 600 000	3 260 000

In 2022, Vår Energi ASA made three issuances of senior notes in the US debt capital markets. The inaugural issue of USD 500 million of 5% Senior Notes due in May 2027 was made on 18 May 2022. On 15 November 2022 Vår Energi ASA issued USD 1 000 million of 7.5% Senior Notes due in January 2028 and USD 1 000 million of 8.0% Senior Notes due in November 2032. The senior notes are registered on the Luxembourg Stock Exchange ("LuxSE") and coupon payments are made semi-annually. The proceeds have been used for partial repayment of the bridge facility. The senior notes have no financial covenants.

As of 31 March 2023, Vår Energi's senior unsecured facilities agreement entered into with a group of 12 international banks consists of 3 separate facilities amounting to USD 3.5 billion; (1) bridge to bond facility of USD 500 million which including extension options at the borrower's discretion has a final maturity 1 November 2023, (2) working capital revolving credit facility of USD 1.5 billion maturing 1 November 2024 and (3) liquidity facility of USD 1.5 billion maturing 1 Nov 2026. The facilities have no amortisation structure and all amounts outstanding fall due at maturity. The facilities have covenants covering leverage (net interest-bearing debt to 12 months rolling EBITDAX not to exceed 3.5) and interest coverage (EBITDA to 12 months rolling interest expenses shall exceed 5) which will be tested at the end of each calendar quarter. The interest rate payable for each of the facilities is determined by timing and the company's credit rating taking the aggregate of the Secured Overnight Financing Rate (SOFR) and the Credit Adjustment Spread (CAS) and adding the applicable margin for the present period as shown in the table above.

Note 18 Asset retirement obligations

USD 1000	Q1 2023	2022	Q1 2022
Beginning of period	3	3	3
	216	297	297
	138	176	176
Change in estimate	85	266	266
	815	380	158
Accretion discount	24	94	24
	376	243	282
Incurred removal cost	(7	(70	(28
	129)	318)	839)
Currency translation effects	(190	(371	29
	249)	343)	648
Total asset retirement obligations	3	3	3
	128	216	588
	951	138	425
Short-term	58	60	35
	400	012	552
Long-term	3	3	3
	070	156	552
	552	126	873
Breakdown by decommissioning period	31 Mar 2023	31 Dec 2022	31 Mar 2022
2022-2030	324 222	339 511	271 421
2031-2040	1 672 249	1 721 737	2 162 039
2041-2057	1 132 480	1 154 890	1 154 965

Change in estimate during Q1 2023 is mainly related to updated discount rates.

The estimate is based on executing a concept for abandonment in accordance with the Petroleum Activities Act and international regulations and guidelines. The calculations assume an inflation rate of 2.0% and discount rates between 2.9% - 3.0% per 31 March 2023. The assumptions per 31 December 2022 were an inflation rate of 4.0% for 2023 and 2.0% from 2024 onwards and discount rates between 3.1% - 3.2%. The discount rates are based on risk-free interest without addition of credit margin.

First quarter 2023 payment for decommissioning of oil and gas fields (abex) is mainly related to spend at Balder.

Vår Energi has a retirement obligation as a shipper in Gassled booked to other non-current liabilities in the balance sheet statement. Vår Energi has accrued USD 67 196 thousand for this purpose per 31 March 2023.

Note 19 Other current liabilities

USD 1000	Note	31 Mar 2023	31 Dec 2022	Restated 31 Mar 2022

Net overlift of hydrocarbons	1	41 446	37 961	40 733
Net payables to joint operations		298 945	378 167	462 911
Employees, accrued public charges and other payables		89 915	50 748	18 405
Deferred payment for option premiums - oil puts	14	36 319	36 143	35 295
Total other current liabilities		466 625	503 019	557 344

The liability for oil put options relates to cost of oil put options that under the purchase agreement is due for payment at the time of settlement of the option (exercise/expiry) and is not a measure of fair value.

Note 20 Commitments, provisions and contingent consideration

During the normal course of its business, the company will be involved in disputes, including tax disputes. The company has made accruals for probable liabilities related to litigation and claims based on management's best judgment and in line with IAS37 and IAS12.

The company has significant contractual commitments for capital and operating expenditures from its participation in operated and partner operated exploration, development and production projects. The current main development projects are Johan Castberg, Balder Future, Breidablikk and Fenja.

Note 21 Lease agreements

Vår Energi has entered into lease agreements for drilling rigs, helicopter, storage vessel and other vessels to secure planned activities.

The company has lease agreements for offices in Sandnes, Oslo and Hammerfest. The most significant office contract is the lease of the main office building in Vestre Svanholmen 1, Sandnes.

Vår Energi also has leases for supply vessels, helicopters and warehouses supporting operation at Balder and Goliat, where the most significant are for the supply vessels operating at Goliat.

There are no new lease agreements in 1Q 2023.

See note 10 for the Right of use assets.

USD 1000	Q1 2023	Q1 2022	2022
Opening Balance lease debt	212	325	325
	646	088	088
New lease debt in period	-	6 680	6 149
Payments of lease debt	(24	(35	(116
	852)	838)	893)
Interest expense on lease debt	1	3	9
	802	227	245
Currency exchange differences	(4 761)	642	(10 942)
Total lease debt	184	299	212
	835	799	646
Breakdown of the lease debt to short-term and long-term liabilities	31 Mar 2023	31 Mar 2022	2022
Short-term	98	108	99
	684	458	312
Long-term	86	191	113
	151	341	334
Total lease debt	184	299	212
	835	799	646
Lease debt split by activities	31 Mar 2023	31 Mar 2022	2022
Offices	51	66	55
	674	376	941
Rigs, helicopters and supply vessels	126	222	149
	777	319	140
Warehouse	6	11	7
	384	103	566
Total	184	299	212
	835	799	646

Note 22 Related party transactions

Vår Energi has a number of transactions with other wholly owned or controlled companies by the shareholders. The related party transactions reported is with entities owned or controlled by the majority ultimate shareholder of Vår Energi, Eni SpA.. Revenues are mainly related to sale of oil, gas and NGL while the expenditures are mainly related to technical services, seconded personnel, insurance guarantees and rental cost.

Current assets
USD 1000	31 Mar 2023	31 Dec 2022	31 Mar 2022
Trade receivables
Eni Trade & Biofuels SpA	192 102	251 129	271 626
Eni SpA	80 327	129 270	125 135
Eni Global Energy Markets	16 940	97 768	65 740
Other	507	546	2 566
Total trade receivables	289 876	478 714	465 067

All receivables are due within 1 year.
----------------------------------------	--	--

Current liabilities

USD 1000	31 Mar 2023	31 Dec 2022	31 Mar 2022

Account Payables
Eni International BV	4	21	26
	753	740	369
Eni Global Energy Markets	16	22	12
	254	063	349
Eni SpA	7	11	9
	940	751	055
Other	1 472	1 340	979
Total account payables	30	56	48
	419	894	751

Sales revenue
USD 1000	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022

Eni Trade & Biofuels SpA	894	757	707	894	707
	213	328	828	213	828
Eni SpA	270	345	340	270	340
	572	095	504	572	504
Eni Global Energy Markets	69	200	161	69	161
	464	912	508	464	508
Total sales revenue	1	1	1	1	1
	234	303	209	234	209
	249	335	840	249	840

Operating and capital expenditures

USD 1000	Q1 2023	Q4 2022	Q1 2022	YTD 2023	YTD 2022

Eni Trade & Biofuels SpA	5	5	17	5	17
	361	001	782	361	782
Eni International BV	5	3	4	5	4
	058	658	867	058	867
Eni SpA	4	3	2	4	2
	908	186	549	908	549
Eni Global Energy Markets	(988)	10 144	(12 329)	(988)	(12 329)
Other	352	(1 833)	573	352	573
Total operating and capital expenditures	14	20	13	14	13
	691	156	442	691	442

Note 23 License ownerships

Vår Energi has the following new licenses since year end 2022.

Fields	WI %	Operator

PL134E	30%	Equinor
PL554E	30%	Equinor
PL1002C	40%	Vår Energi
PL1173	50%	Vår Energi
PL1179	25%	Equinor
PL1185	20%	Equinor
PL1188	23%	Equinor
PL1189	23%	Equinor
PL1192	50%	Vår Energi
PL1194	30%	OMV
PL1196	70%	Vår Energi
PL1197	50%	Vår Energi

Asset transactions/Other changes
Fields	WI %	Operator	Changes
Additions
PL1025S/SB	30%	Vår Energi	Working interest
Disposals
PL1002/B	58%	Vår Energi	Working interest

Note 24 Subsequent events

Vår Energi has elected to sell part of its gas on a fixed price/forward basis. For the 2nd quarter 2023, Vår Energi has sold 22% of the estimated gas production on a fixed price basis at an average price of 191 USD/boe. Similarly it has sold 20% of the estimated gas production in the 3rd quarter at an average sales price of 189 USD/boe. For the 4th quarter, Vår Energi has sold 21% of its estimated gas production with pricing linked to the Gas Year Ahead product where the pricing period is 1 October 2022 - 30 September 2023. As per 31 March 2023, the cumulative average price for the first 6 months of the pricing period is 166 USD/boe.

Industry terms

Term	Definition/description	Term	Definition/description
Boepd	Barrels of oil equivalent per day	NGL	Natural gas liquids
Bscf	Billions of standard cubic feet	NPD	Norwegian Petroleum Directorate
CFFO	Cash flow from operations	OSE	Oslo Stock Exchange
E&P	Exploration and Production	PDO	Plan for Development and Operation
FID	Final investment decision	PIO	Plan for Installation and Operations
FPSO	Floating, production, storage and offloading vessel	PRM	Permanent reservoir monitoring
HAP	High activity period	PRMS	Petroleum Resources Management System
HSEQ	Health, Safety, Environment and Quality	Scf	Standard cubic feet
HSSE	Health, Safety, Security and Environment	Sm3	Standard cubic meters
IG	Investment grade	SPT	Special petroleum tax
Kboepd	Thousands of barrels of oil equivalent per day	SPS	Subsea production system
Mmbls	Standard millions of barrels	SURF	Subsea umbilicals, riser and flowlines
Mmboe	Millions of barrels of oil equivalents	1P reserves	The quantities of petroleum which can be estimated with reasonable certainty to be
Mmscf	Millions of standard cubic feet		commercially recoverable, also referred to as "proved reserves".
MoF	Ministry of Finance	2C resources	The quantities of petroleum estimated to be potentially recoverable from known accumulations, also referred to as "contingent resources".
MPE	Ministry of Petroleum and Energy 2P reserves Norwegian Continental Shelf		Proved plus probable reserves consisting of 1P reserves plus those additional reserves, which are less likely to be recovered than 1P reserves.
NCS

Disclaimer

The Materials speak only as of their date, and the views expressed are subject to change based on a number of factors, including, without limitation, macroeconomic and equity market conditions, investor attitude and demand, the business prospects of the Group and other specific issues. The Materials and the conclusions contained herein are necessarily based on economic, market and other conditions, as in effect on, and the information available to the Company as of, their date. The Materials do not purport to contain all information required to evaluate the Company, the Group and/or their respective financial position. The Materials should be reviewed together with the Company's Annual Report 2022. The Materials contain certain financial information, including financial figures for and as of 31 March 2023, that is preliminary and unaudited, and that has been rounded according to established commercial standards. Further, certain financial data included in the Materials consists of financial measures which may not be defined under IFRS or Norwegian GAAP. These financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS or Norwegian GAAP.

The Company strongly suggests that each Recipient seeks its own independent advice in relation to any financial, legal, tax, accounting or other specialist advice; no such advice is given by the Materials. Nothing herein shall be taken as constituting the giving of investment advice and the Materials are not intended to provide, and must not be taken as, the exclusive basis of any investment decision or other valuation and should not be considered as a recommendation by the Company (or any of its affiliates) that any Recipient enters into any transaction. The Materials comprise a general summary of certain matters in connection with the Group. The Materials do not purport to contain all the information that any Recipient may require to make a decision with regards to

any transaction. Any decision as to whether to enter into any transaction should be taken solely by the relevant Recipient. Before entering into such transaction, each Recipient should take steps to ensure that it fully understands such transaction and has made an independent assessment of the appropriateness of such transaction in the light of its own objectives and circumstances, including the possible risks and benefits of entering into such transaction.

The Materials may constitute or include forward-looking statements. Forwardlooking statements are statements that are not historical facts and may be identified by words such as "plans", "targets", "aims", "believes", "expects", "projects", "anticipates", "intends", "estimates", "will", "may", "continues", "should" and similar expressions. Any statement, estimate or projections included in the Materials (or upon which any of the conclusion contained herein are based) with respect to anticipated future performance (including, without limitation, any statement, estimate or projection with respect to the condition (financial or otherwise), prospects, business strategy, plans or objectives of the Group and/or any of its affiliates) reflect, at the time made, the Company's beliefs, intentions and current targets /aims and may prove not to be correct. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. The Company does not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.

To the extent available, the industry, market and competitive position data contained in the Materials come from official or third-party sources. Thirdparty industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable,

but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable source, none of the Company, its affiliates or any of its or their respective representatives has independently verified the data contained therein. In addition, certain of the industry, market and competitive position data contained in the Materials come from the Company's own internal research and estimates based on the knowledge and experience of the Company in the markets in which it has knowledge and experience. While the Company believes that such research and estimates are reasonable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change and correction without notice. Accordingly, reliance should not be placed on any of the industry, market or competitive position data contained in the Materials.

The Materials are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation of such jurisdiction or which would require any registration or licensing within such jurisdiction. Any failure to comply with these restrictions may constitute a violation of the laws of any such jurisdiction. The Company's securities have not been registered and the Company does not intend to register any securities referred to herein under the U.S. Securities Act of 1933 (as amended) or the laws of any state of the United States. This document is also not for publication, release or distribution in any other jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction nor should it be taken or transmitted into such jurisdiction and persons into whose possession this document comes should inform themselves about and observe any such restrictions.

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Vår Energi ASA

3780_rns_2023-04-24_88ae931a-883f-4fb0-bb2b-eacd017c6fc7.pdf

First quarter 2023

Vår Energi in brief

Key figures first quarter 2023

First quarter 2023 highlights

Key metrics and targets

Targets and outlook

2023 guidance (USD million unless otherwise stated)

Long-term financial and operational targets

Operational review

Production

Production efficiency

Hubs

Diverse and robust portfolio positioned for value-adding growth

Production cost

Projects and developments

Balder X

Johan Castberg

Breidablikk

Bauge, Hyme and Fenja

Exploration

Health, safety, security and the environment (HSSE)

Decarbonisation and environmental impact

Financial review

Statment of income

USD per boe 14.1 13.1 13.5 12.1

Production cost

Exploration expenses

Depreciation, depletion, amortisation (DD&A)

Net finance

Tax

Profit for the period

Condensed statement of financial position

NIBD / EBITDAX

Interest-bearing debt

Condensed statement of cash flow

Cash flow from operating activities before tax

Cash flow from operating activities (CFFO)

Condensed statement of cash flow – continued

Expenditures on PP&E, fourth quarter 2022

Condensed statement of cash flow – continued

Outlook

Transactions with related parties

Risks and uncertainty

Alternative performance measures (APMs)

EBITDA and EBITDAX

Financial statements with note disclosures

Unaudited statement of comprehensive income

Unaudited balance sheet statement

Unaudited balance sheet statement – continued

Unaudited statement of changes in equity

Unaudited statement of cash flows

Unaudited statement of cash flows – continued

Notes

(All figures in USD 1000 unless otherwise stated)

Note 1 Summary of IFRS accounting principles and prior year restatements

Restatement of interest paid in cash flow statement

Note 1 Summary of IFRS accounting principles and restatements – continued

Restatement of over/underlift

Note 2 Income

Note 3 Production costs

Note 4 Other operating expenses

Note 5 Exploration expenses

Note 6 Financial items

Note 7 Income taxes

Note 7 Income taxes – continued

Note 8 Intangible assets

Note 9 Tangible assets

Note 10 Right of use assets

Note 11 Impairment

Impairment testing

Prices

Note 11 Impairment – continued

Oil and gas reserves

Future expenditure

Discount rate

Currency rates

Inflation