Q2 2025 Var Energi ASA Earnings Call Transcript
Key Points
- Var Energi ASA (VARRY) reported strong results for the second quarter of 2025, with key growth projects delivered as expected.
- Production is on track to meet the midpoint of the full-year guidance range, with current production above 350,000 barrels per day.
- The company strengthened its financial position with cash flow from operations post-tax at $766 million and successful refinancing of credit facilities.
- Var Energi ASA (VARRY) continues to provide attractive and predictable dividend distributions, confirming a $300 million dividend for the second quarter.
- The company is on track to sustain production of 350,000 to 400,000 barrels per day towards 2030, supported by a portfolio of around 30 early phase projects.
- First half 2025 production was at the lower end of expectations due to the later start-up and slower ramp-up at Johan Castberg.
- Second-quarter production was impacted by 30,000 barrels per day of reductions due to planned turnarounds.
- Operating costs were higher in the second quarter, partly due to ramp-up phases and planned maintenance activities.
- The company faces challenges in maintaining production levels amidst planned shutdowns and maintenance activities.
- There is uncertainty regarding the business case for carbon capture and storage (CCS) projects, which are not currently part of the decarbonization plan.
Good morning, everyone, and a warm welcome to VÃ¥r Energi's second-quarter 2025 results.
The presentation today will be given by our CEO, Nick Walker; and our CFO, Carlo Santopadre. Nick and Carlo will present the results. And afterwards, we will open up the Q&A.
I will now hand the word over to Nick.
Thank you, Ida, and good morning to you all, and I hope you're having a nice summer break, and thank you for taking time out to join us today for our second-quarter 2025 results presentation.
I'm pleased to report strong results for the quarter. Our key growth projects have been delivered as expected, which means we're on track to meet our plans for transformational growth in 2025. And we're moving forward a pipeline of quality new projects at pace that will sustain value creation in the longer term. And on the back of this strong performance and the resilience of the company to manage through the volatile markets, we
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