Norway's Vaar Energi Q1 operating profit lags forecast

Vaar Energi, a Norwegian oil company, reported a lower than expected operating 'profit for the first quarter. It maintained its dividend and capital expenditure guidance.

Vaar, listed in Oslo, increased its earnings before interest and taxes (EBIT) from $972 to $1.31 Billion between January-March. This is a significant increase but still falls short of the $1.41 Billion average forecast by 15 analysts in a poll conducted by Vaar.

During the third quarter, Vaar surpassed rival?Aker BP as Norway's second largest listed oil producer based on output.

It reported a record-breaking first quarter production of '406,000 barrels equivalent per day (boed), an increase of 51% over a year ago and ahead of AkerBP's 398.400 boed.

Vaar produces about a third natural gas.

Nick Walker, CEO of Vaar, said in a press release that the company was "strongly leveraged" to the current high-price environment while maintaining its strategy and commitment to be a reliable and responsible?supplier? of oil and natural gas from the Norwegian Continental Shelf to Europe for a long time.

Vaar, majority-owned by Italy's Eni has maintained its?quarterly dividend guidance?of $300m, as well as?its capital expenditure guidance?for developments of $2.5bn-2.7bn. (Reporting and editing by Terje Solsvik, with Nerijus Adomiaitis)

(source: Reuters)