Vaar Energi Q3 operating profit beats expectations

Vaar Energi, a company listed in Oslo and majority owned by Italy's Eni, reported a higher-than-expected third-quarter operating result on Tuesday. It also forecast lower capital expenditures and production costs for 2024.

The company's earnings before tax and interest (EBIT) fell from $907 to $740 in the April-June period, but were still higher than the $702 average forecast of 13 analysts who took part in the poll.

Vaar CEO Nick Walker stated in a press release that "we're showing strong costs discipline, lowering guidance on capital expenditure and production costs for the year as we enter into a more volatile pricing environment."

Vaar expects to have its production costs below $13 for the entire year, compared to an earlier guidance of $13.5-14.5 per barrel of equivalent oil (boe).

The company also revised its estimate of capital expenditures for the full year, excluding exploration and abatement, from $2.7 billion to $2.9 billion.

Vaar continued to pay a cash dividend quarterly of $270,000,000, or approximately $0.11 per share for the fourth quarter. (Reporting and editing by Terje Solsvik, Nerijus Adomiaitis)

(source: Reuters)