Norway's Vaar Energi Q1 operating profit lags forecast (updated)

Var Energi ASA

22/04/2026 06:23

Updates with CEO's comment on extraordinary dividend, pricing of physical cargoes, share price in paragraphs 1-6, 11

By Nerijus Adomaitis

OSLO, April 22 (Reuters) - Norwegian oil company Vaar Energi VAR.OL said on Wednesday it may pay an extraordinary dividend this year if energy prices remain elevated due to the Middle East war, while posting a slightly smaller than expected rise in first quarter profits.

The company, majority owned by Italy's Eni ENI.MI, maintained a quarterly dividend guidance of $300 million, but signalled rising earnings in the second-quarter due to soaring oil and gas prices.

"By the end of the year, we would consider whether there is a case to pay an extraordinary dividend should these prices continue," Vaar's CEO Nick Walker told a call with reporters.

Vaar said its oil revenue in the second-quarter will reflect higher prices for physical delivery, so-called dated Brent, over Brent futures LCOc1, as cargoes are sold one to two months prior to delivery.

Walker said the average realised price for Vaar's first five cargoes lifted in April was about $130 per barrel, compared to the company's realised average price of $80 per barrel for the full first quarter.

He added that some cargoes sold for delivery in May were priced some $20 above the Brent crude futures, which traded at around $98 per barrel on Wednesday.

    Oslo-listed Vaar's earnings before interest and tax (EBIT) for January–March rose to $1.31 billion from $972 million a year earlier, lagging the average $1.41 billion forecast in a company-compiled poll of 15 analysts.

    During the quarter, Vaar overtook rival Aker BP AKRBP.OL to become Norway's second-largest listed oil producer by output.

Vaar reported a record first-quarter production of 406,000 barrels of oil equivalent per day (boed), up 51% from a year earlier and ahead of Aker BP's 398,400 boed.

About a third of Vaar's output is natural gas.

Vaar's Oslo-traded shares rose 1.8% by 0750 GMT and are up 34% since the start of 2026.

 (Reporting by Nerijus Adomaitis, editing by Terje Solsvik)

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