Vår Energi (Buy, TP: NOK46.00) - Recalibration
While we had expected 2022 production guidance to be lowered, the weak realised gas prices in the Q3 trading update have led us to recalibrate our estimates, with EPS cuts mainly for 2022–2023e. We keep our positive view on the stock as 2023–2025e FCF should remain strong, covering ~180% of expected dividends, and the balance sheet robust, with 0.2x leverage in 2022e, leaving limited downside risk to dividends. We reiterate our BUY but have cut our target price to NOK46 (48).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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