Vår Energi (Buy, TP: NOK58.00) - Extraordinary dividends likely
We reiterate our BUY and have raised our target price to NOK58 (51), despite lowered oil price forecasts, as these are more than offset by a significant strengthening of European gas prices. With gas comprising 27% of 2023e production, Vår Energi remains a major beneficiary of the European energy crunch. Exceptional expected FCF over the next 18 months should trigger extraordinary dividends on top of a growing ordinary dividend already yielding an attractive ~10%.
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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