Vaar Energi raises dividends, Q4 profits in line

Vaar Energi, a company listed in Oslo and majority owned by Eni of Italy, raised its dividend on Tuesday, while reporting a fourth quarter operating profit that was in line with expectations.

Vaar's earning before interest and taxes (EBIT) rose from $399 to $1 billion in the quarter of October-December, a rise that was in line with the $1.03 billion average forecast of 13 analysts polled by the company.

The company announced that it would increase its dividend to $300 million or 1.213 Norwegian Crowns per share for the first three months of 2025, up from $270 million in the fourth quarter.

It plans to distribute, after taxes, 25-30% to its cash flow generated from operations for the entire year. This is a significant increase over the 20-30% previously stated.

Vaar's production increased by 31% compared to 2023's full year, to 280,000 barrels equivalent per day (boed), due to the acquisition and start-ups of new projects.

In a press release, CEO Nick Walker stated that "Vaar Energi will see significant production growth as we enter the year 2025. This is a transformational year for the company. We're on course to reach over 400,000 boed by the end of the fourth quarter."

Vaar stated that the Equinor operated Johan Castberg field in the Barents sea was expected to be operational in the first quarter. Its own Balder X project was also set to begin production by the end the second quarter.

Castberg, in which Vaar holds a 30% stake is expected to add 66,000 boed to Vaar’s production, the company said. (Reporting and editing by Terje Solsvik, Nerijus Adomiaitis)

(source: Reuters)