Var Energi rises; Jefferies cites reaffirmed production, acquisition

Grounded Lithium

09/08/2023 16:10

** Shares of Var Energi  VAR.OL  rise 5% as Jefferies
highlights the Norwegian oil firm's reaffirmed production
guidance and a planned acquisition, boosting investor confidence
    ** Despite anticipated negative impact in Q3 due to extended
maintenance at Balder and Ormen Lange facilities, the company
expects to meet FY23 production goals, according to the
brokerage
    ** "High realised gas prices from fixed sales have been
beneficial, and Var has incurred lower cash taxes than we
previously carried" - Jefferies
    ** The brokerage also notes the $2.275 billion acquisition
of Neptune Energy Norge as a key growth catalyst, adding
significant reserves and production capacity
    ** The company maintains a stable dividend with an
attractive 15% yield, significantly higher than peer Aker BP's
 AKRBP.OL  8%, says Jefferies 
    ** It is among top performers of Oslo Børs Benchmark Index
 .OSEBX 

 (Reporting By Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))