Var Energi ASA has reported a document excessive quarterly output of 299,000 barrels of oil equal per day (boepd) for January–March 2024, up 40 p.c in comparison with the identical interval a 12 months in the past and 33 p.c in opposition to the prior quarter.
The surge was pushed by newly acquired Norwegian property from Neptune Power Group Ltd. and the Breidablikk subject on the Norwegian facet of the North Sea.
On January 31 Var Energi’s majority proprietor, Eni SPA, introduced the completion of the Neptune acquisition. The transaction gave Neptune’s property in Norway to Var Energi. The remainder of the transacted stakes, which didn’t embody Neptune’s actions in Germany, went to the Italian government-controlled Eni.
In the meantime Breidablikk began manufacturing final 12 months, as introduced by operator Equinor ASA final October 20. Norway’s majority state-owned Equinor stated on the time it deliberate to distribute as much as 60,000 barrels of Breidablikk’s output every day, primarily to Europe. The sector holds 200 million barrels of recoverable oil, in accordance with Equinor.
“Following the profitable start-up of Breidablikk in October final 12 months, the sphere produced from all 8 preliminary wells by means of the primary quarter 2024, offering a fabric improve from the prior quarter”, stated Sandnes, Norway-based Var Energi, which holds a 34.4 p.c stake within the growth. “The ahead plan is to drill 14 further wells over the following few years. Drilling on Breidablikk re-commenced with the ninth properly in March, anticipated to be on stream in Might, forward of plan”.
Var Energi expects to common 280,000–300,000 boepd in manufacturing for 2024. It expects to place onstream the Balder subject redevelopment mission within the Norwegian North Sea and the Johan Castberg subject mission within the Norwegian Barents Sea within the fourth quarter.
“As one of many world’s quickest rising E&Ps [exploration and production companies], our dedication to extend manufacturing to round 400 kboepd [400,000 boepd] by finish 2025 stays agency”, Var Energi chief govt Nick Walker stated in a press release.
Within the first quarter of 2024 Var Energi’s manufacturing price $12 per boe, down from $13.9 within the October–December 2023 quarter. Manufacturing price steerage for this 12 months stays at $13.5–14.5, it stated.
Var Energi logged $100 million in web revenue, or $0.04 per share, down from $195 million for the corresponding quarter a 12 months in the past and $129 million for the previous three-month interval. The adjustments mirrored weaker realized pure gasoline costs, down each year-over-year and quarter-on-quarter.
The gasoline worth decline offset a year-on-year and quarter-on-quarter improve in gross sales volumes for petroleum, gasoline and gasoline liquids. Var Energi bought 14.5 million boe of crude oil, 9.2 MMboe of gasoline and a couple of.2 MMboe of pure gasoline liquids within the first quarter.
Var Energi ended the quarter with $1.9 billion in present property together with $722 million in money and money equivalents. Var Energi had $2.3 billion in liquidity as of March together with $1.6 billion in revolving credit score services. In the meantime it had $1.6 billion in taxes payable. Var Energi held $315 million in free money move.
Var Energi stated it can distribute $270 million in dividends for the primary quarter, which interprets to NOK 1.192 ($0.11) per share. It has a coverage of returning to shareholders 20–30 p.c of post-tax money move from operations (CFFO). “For 2024, the Firm expects a complete dividend of roughly 30 p.c of CFFO after tax”, it stated.
In different firm developments, Var Energi stated its boards of administrators and that of Neptune’s Norwegian unit accepted the merger of the 2 corporations.
“The merger is anticipated to be accomplished across the finish of the second quarter of 2024, after the statutory creditor discover interval of six weeks has expired”, Var Energi stated in a separate assertion.
To contact the writer, e mail jov.onsat@rigzone.com