Norwegian operator Var Energi (OSLO: VAR) has posted pre-tax profits of £1 billion for the third quarter of the year.
Though broadly similar to the previous quarter’s takings, it is big increase on the £824 million the company reported in Q3 2021
But between July and August the company suffered a net impairment of £507m, with the after-tax impact of £273m reflected in net income
As previously signalled, Var’s production for Q3 averaged 215,000 barrels of oil equivalent per day, an increase on Q2 but down 11% on the same period last year.
The drop was attributed to lower production from the Grane, Ekofisk, Statfjord fields and Snorre.
Full year 2022 production guidance has also been revised to 220-225 thousand barrels of oil equivalent per day (kboepd), down from 230 – 245 kboepd communicated in the second quarter.
Var, which listed on the Oslo Stock Exchange earlier this year, also revised its schedule and investment estimate for the Balder X development project during the quarter.
It follows a comprehensive baseline project review.
First oil from the scheme, which involves refurbing the Jotun FPSO as the Balder area hub centre with new production wells, is now expected in Q3 2024.
The project is expected to contribute with more than 63 kboepd per day at peak production in 2025.
Torger Rod, chief executive of Var, created in 2018 through a merger between Point Resources, owned by private equity firm HitecVision, and Eni Norge, said: “Macro complexity and the global security situation influence energy markets with wide-reaching effects, reaffirming the importance of the Norwegian Continental Shelf as a reliable supplier of oil and gas to Europe.
“Against this backdrop, our focus is on safe, efficient and secure operations, working in close collaboration with our partners and relevant authorities.
“At the same time, we progress the developments which are set to deliver our longer-term production growth, and while we revised the Balder X schedule and investment estimate in the quarter, we continue to deliver strong cash flow and shareholder distributions in 2022.”
Var is one of the largest exploration and production companies in Norway, with production from 36 oil and gas fields.
In February, the group listed on the stock exchange in Oslo – Eni and Point Resources remain its largest shareholders.