Vår Energi ASA reported strong third-quarter 2025 results, highlighted by accelerated project delivery and rising production from key developments on the Norwegian Continental Shelf. The company said seven of nine new growth projects scheduled for 2025 start-up are already on stream, positioning Vår Energi ahead of schedule in its transformation plan.
Production milestones ahead of plan
Average fourth-quarter output is expected to reach approximately 430,000 boed, supported by ramp-up at major new assets including the Johan Castberg field and the Jotun FPSO at the Balder field, both of which achieved plateau production during the quarter.
Vår Energi said the successful delivery of these projects has “de-risked” its production outlook, adding roughly 180,000 boed of new capacity in 2025. The company remains on track to sustain production between 350,000 and 400,000 boed toward 2030, supported by a pipeline of about 30 early-phase projects across the Norwegian shelf.
Financial performance and operational efficiency
Third-quarter cash flow from operations totaled $1.2 billion, while net debt was reduced and liquidity stood at $3.6 billion. Unit production costs were reported at $10.6/boe, with fourth-quarter costs expected to remain around $10/boe.
Approximately 18% of gas sales during the quarter were realized at $90/boe, contributing to strong cash generation. The company declared a $300 million dividend for the quarter, maintaining guidance for $1.2 billion in shareholder distributions for both 2025 and 2026.
Project pipeline and future development
Vår Energi plans to sanction up to ten new projects in 2025, with four already progressing toward final investment decision. Average project breakevens are estimated below $35/boe, reflecting the company’s focus on high-return, low-cost developments.
In addition, the acquisition of TotalEnergies’ interest in the Ekofisk Previously Produced Fields project will add “high-value barrels” to the portfolio at an attractive entry price, according to CEO Nick Walker.
“Our company has never been in a stronger position,” Walker said. “With seven of nine new projects now producing, a robust financial position, and a deep pipeline of future developments, Vår Energi is well placed to deliver sustainable growth and long-term value.”
