Norway's Vaar Energi maintains dividend after Q4 profit beats forecast (updated)

Var Energi ASA

10/02/2026 06:21

Operating profit $947 million in Q4 vs forecast $838 million

Sees higher capex, raises output target

Takes 'prudent' approach to dividend guidance

Adds details on dividend, divestments in paragraphs 1, 7, 14

By Nerijus Adomaitis

OSLO, Feb 10 (Reuters) - Vaar Energi VAR.OL, majority-owned by Italy's Eni ENI.MI, on Tuesday raised its output target and posted a higher-than-expected operating profit for the fourth quarter, but said it would be cautious about its dividend guidance due to weaker oil and gas prices.

Oslo-listed Vaar's earnings before interest and tax for October to December fell 5.8% on the year to $947 million on lower oil and gas prices, beating the average $838 million forecast in a company-compiled poll of 13 analysts.

"We are pleased to have delivered transformational growth in 2025, doubling production in just two years," Vaar's CEO Nick Walker said in a statement.

HIGHER OUTPUT GOAL, RISING CAPEX

Norway's third-largest listed oil and gas producer forecast full-year 2026 production in the range of 390,000 to 410,000 barrels of oil equivalent per day, up from 332,000 in 2025.

Vaar raised its long-term output target to more than 400,000 boed from 350,000-400,000 boed earlier, supported by 13 projects in execution and around 30 early phase projects being matured.

The company also plans to divest some assets in the near future to optimise its portfolio, Walker said.

Vaar shares were 0.1% higher at 0906 GMT, in line with the broader Norwegian market.

The company plans to sanction up to eight new projects this year, expecting capital spending of $2.5 billion to $2.7 billion in 2026, and to average $2.5 billion per year over 2027 to 2032.

It aims to drill 12 exploration wells in 2026, down from 20 last year, with the exploration spending forecast at $250 million to $300 million.

Its previous target for capital expenditures was $2 billion to $2.5 billion for 2026 to 2030.

Brokers DNB Carnegie said it could be difficult for Vaar to reach its revised long-term output goal with its current asset portfolio.

The company maintained a quarterly dividend of $300 million for the first quarter of 2026, after paying a total of $1.2 billion for the full year 2025.

"Given the volatility and uncertainty in the world today, we are taking a more prudent approach (on dividend guidance)," Walker said, adding that the company remained committed to paying out 25% to 30% of its cashflow from operations after tax.

Vaar Energi quarterly operating profit https://reut.rs/4kpflrT

 (Reporting by Nerijus Adomaitis; Editing by Terje Solsvik, Louise Heavens and Thomas Derpinghaus)

 ((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters Messaging: nerijus.adomaitis.thomsonreuters@reuters.net))