Var Energi (OSLO: VAR) has warned of a production drop and a $260 million exchange rate hit in its upcoming Q3 results.
The firm, which lised in Oslo earlier this year, said production for Q3 averaged 215,000 barrels of oil equivalent per day, down 11% on the same period last year.
“Production in the third quarter was impacted by operational issues at both partner-operated and operated fields,” it said.
“Planned turnarounds were completed according to schedule and budget during the quarter.”
Guidance has been revised from 230-245,000 barrels per day down to 220-225,000 per day.
The Q3 figures still represent a 2% increase on Q2 2022 production.
Meanwhile the weakening of the Norwegian Korner has dealt a blow.
Var Energi uses NOK as its functional currency, whilst interest-bearing loans are in US Dollars.
The weakening of NOK during the quarter is expected to lead to a net exchange rate loss of $260m.
Results on the way
It comes as Var Energi is due to unveil its Q3 results on October 25.
Var Energi is one of the largest exploration and production companies in Norway, with production from 36 oil and gas fields.
It was created in 2018 through a merger between Point Resources, owned by private equity firm HitecVision, and Eni Norge.
In February, Var Energi listed on the stock exchange in Oslo – Eni and Point Resources remain the firm’s largest shareholders.