Vår Energi (Buy, TP: NOK41.00) - On track to double production
With Balder X (Q3 2024e) and Johan Castberg (Q4 2024e) remaining on schedule, and the FCF-accretive Neptune Energy transaction expected to close in Q1, we expect Vår Energi to nearly double production from 213kboed in 2023 to 400kboed in 2025. Supported by a solid FCF outlook, we expect the dividend capacity to increase from the already appealing level (~13% yield). We reiterate our BUY and have raised our target price to NOK41 (37), having increased our long-term oil price assumption from USD70/bbl to USD75/bbl.
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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