Norway's Vaar Energi Q3 beats forecasts (updated)

Var Energi ASA

21/10/2025 08:16

Adds share price, CEO quote, production guidance, dividend and analyst in 3-9 paragraphs

OSLO, Oct 21 (Reuters) - Norwegian oil firm Vaar Energi VAR.OL reported on Tuesday a stronger-than-expected operating profit for the third quarter and reiterated its production and dividend guidance.

Vaar's earnings before interest and tax for the July to September quarter rose to $1.07 billion from $740 million a year earlier, beating the average $906 million forecast in a company-compiled poll of 12 analysts.

The company's shares rose 1.7% by 0716 GMT.

"With our major projects on stream, the company has never been a better position in terms of its outlook and sustaining the dividend," CEO Nick Walker told reporters.

Vaar said it expected to meet its full year production guidance range of 330,000 to 360,000 barrels of oil equivalent per day (boed) as it ramped up new projects, with the fourth quarter output seen at 430,000 boed.

Vaar, majority owned by Eni ENI.MI, also maintained its previous full-year dividend guidance of $1.2 billion for 2025 and 2026.

RBC analysts, however, said in note that investors remained concerned about a dividend cut if oil prices continue to
fall
.

Walker said he saw $60 per barrel as an oil price "floor" as lower levels would lead to curtailment of U.S. shale oil production, while Vaar could adjust its spending if needed.

In July, the company
said
 it planned to cut spending by $500 million over the period of 2025-2026.

 (Reporting by Nerijus Adomaitis, editing by Terje Solsvik)

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