Oslo-listed oil and gas firm Vaar Energi on Wednesday reported a lower-than-expected operating profit for the first quarter, but said it would maintain its dividend level as it prepares for a sharp rise in output in coming months.
Vaar's earnings before interest and tax (EBIT) for the January-March quarter fell to $972 million from $1.05 billion a year earlier, lagging the average $1.04 billion forecast in a company-provided poll of 12 analysts.
"In the current uncertain market environment our business remains resilient, with low free cash flow break-even and a highly flexible investment program of which 70% is uncommitted," Vaar's CEO Nick Walker said in a statement.
The company maintained investment plans of $2.3 billion-$2.5 billion for 2025 and $2.0 billion-$2.5 billion annually for 2026-2030, but much of this has yet to be formally approved.
Vaar said it would pay $300 million in dividends for the second quarter, maintaining its policy of returning to shareholders between 25% and 30% of cash flow from operations after tax for the full year.
The Norway-focused company, majority owned by Italy's Eni ENI.MI, eyes significant growth of its output thanks to the startup of production from new fields.
It expects petroleum production to rise to over 400,000 barrels of oil equivalent per day (boepd) in the fourth-quarter from 272,000 boepd in the first quarter.
Vaar's flagship Balder X project will come on stream at the end of the second-quarter, after several delays, the company confirmed on Wednesday.
Along with other new projects, including the partner-operated Johan Castberg oilfield in the Barents Sea, Vaar aims to add some 180,000 boepd in oil and gas production towards the fourth-quarter.
Global oil demand is expected to grow at its slowest rate for five years in 2025 due to U.S. President Donald Trump’s tariffs on trading partners and their retaliatory moves, the International Energy Agency warned on April 15.
(Reuters - Reporting by Nerijus Adomaitis; Editing by Terje Solsvik and Tom Hogue)