Vaar Energi Q3 in Norway beats expectations
Norwegian oil firm Vaar Energi reported on Tuesday a stronger-than-expected operating profit for the third quarter and reiterated its production and dividend guidance.
Vaar's earnings for the quarter of July-September rose from $740 to $1.07 Billion, a jump of 74%. This is a huge improvement over the $740 Million earned a year ago.
Shares of the company rose by 1.7% at 0716 GMT.
"With major projects in progress, the company is now better positioned than ever to maintain its dividend and improve the outlook," CEO Nick Walker said.
Vaar expects to reach its production range for the full year of 330,000-360,000 barrels equivalent per day (boed), with a fourth quarter output of 430,000 boed.
Vaar, which is majority owned by Eni and has a dividend forecast of $1.2 billion per year for 2025-2026, has also retained its previous full-year guidance.
RBC analysts said, however, that investors were still concerned about a possible dividend cut, if oil prices continued to rise.
Walker stated that he considered $60 per barrel to be the "floor" for oil prices, as anything lower would result in a reduction of U.S. oil production. Vaar can adjust its spending as needed.
The company has announced its July 2017 results.
It planned to reduce spending by $500,000,000 over the period 2025-2026. (Reporting and editing by Terje Solsvik, Nerijus Adomiaitis)
(source: Reuters)
