Vår Energi reported USD 2.1 billion in cash flow from operations after tax for the second quarter of 2026, a record for the company, and agreed to combine with BlueNord to create the largest independent oil and gas producer in Europe.

Cash flow and balance sheet

Net debt fell to USD 3.4 billion and the leverage ratio dropped to 0.4x. Available liquidity stood at USD 5.3 billion. Vår Energi also completed a EUR 750 million hybrid bond issuance during the quarter, and Fitch assigned the company a BBB rating with a stable outlook. The company's long-term dividend policy is to pay 25% to 30% of cash flow from operations after tax over the cycles.

Combination with BlueNord

Vår Energi and BlueNord agreed to combine their businesses, targeting long-term production of around 450 thousand barrels of oil equivalent per day for the combined company. Vår Energi said the deal increases production and reserves. It also adds resources. CEO Nick Walker said the combination creates 'a stronger, more diversified company with increased scale, resilience and cash generation.'

The Q2 2026 dividend of USD 350 million will go only to existing Vår Energi shareholders. Vår Energi intends to pay a further USD 350 million dividend for the third quarter of 2026 to shareholders of the combined company, assuming the deal closes by the effective date for that distribution. If closing comes after the record date for the Q3 dividend, the cash paid to BlueNord shareholders will be adjusted to account for the value of that distribution and any additional distribution made before closing. Both dividends depend on a 31 May 2026 audited interim balance sheet showing sufficient free equity, and on general meeting approval.

Production and reserves

Vår Energi said it remains on track to meet full-year production guidance, with 94% production efficiency year-to-date on operated assets. It expects higher production in the second half of 2026 as new projects and wells come onstream. The company sanctioned two projects in the Balder and Gjøa areas, developing around 110 million barrels of oil equivalent in net 2P reserves. Reserves at the Breidablikk field have grown 50% since the field's original plan for development and operation. Vår Energi now has 16 projects in execution and 30 more being matured toward development, and said a series of portfolio transactions on the Norwegian continental shelf added value and extended field life.