Q1 2026 Var Energi ASA Earnings Call Transcript
Key Points
- Var Energi ASA (VARRY) reported record high production of 406,000 barrels per day in Q1 2026, supported by strong performance from operated assets with 97% production efficiency.
- The company delivered strong financial performance with significant cash flow from operations post-tax of $1.1 billion and available liquidity stable at $3.5 billion.
- Var Energi ASA (VARRY) confirmed a dividend distribution for Q1 2026 of $300 million, marking 17 consecutive quarters of stable or growing dividends.
- The company has a high-quality portfolio with a balanced commodity mix, including being one of the largest gas exporters from Norway, leveraging high gas prices in Europe.
- Var Energi ASA (VARRY) continues to reduce carbon emissions intensity and aims to become carbon neutral in net equity operational emissions by 2030, ranking in the top 15% of the industry globally for ESG leadership.
- Production costs were slightly higher than target at $10.4 per barrel in Q1 2026 due to the strengthening Norwegian kroner.
- The company faces planned turnarounds in Q2 and Q3 2026, which will impact production, although the annual average reduction is expected to be small.
- Var Energi ASA (VARRY) has decided to terminate further work on the electrification of the Balder Grane area due to challenging economics.
- The realized gas price was approximately $7 below the average spot market reference price due to a combination of sales strategies.
- The company has been in a stable underlifting position for six consecutive quarters, although a significant reversal is expected in Q2 2026.
Thank you, and good morning to everyone. A warm welcome to VÃ¥r Energi's first-quarter 2026 results presentation. The presentation today will be held by our CEO, Nick Walker; and our CFO, Carlo Santopadre. Nick and Carlo will go through the presentation, and then afterwards, we will open up for Q&A.
I will now hand the word over to Nick.
Well, thank you, Ida, and good morning to you all, and thank you for joining us today for our first quarter 2026 results presentation.
I'm pleased to report we delivered as planned in the quarter with record high production and strong financial results. And we're strongly leveraged to the current high price environment. Our operations have not been disrupted by the war in the Middle East, demonstrating the strategic importance of Norway as a secure and responsible supplier of energy to Europe. We're continuing to transform as a company to harness the entrepreneurial energy of our team,
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