Norwegian exploration and production firm Var Energi (OSLO: VAR) expects to dish out a minimum of $1 billion in dividends this year.
It follows a period of “safe and efficient operations” for the operator, as well as lofty oil and gas prices and “stable production and supply”.
The dividend figure is based on current market conditions and will be disbursed on a quarterly basis.
A payment of $225 million for the first quarter was distributed in May – $260 million for the second quarter will be allocated next month.
The company plans to pay a further $290m for Q3 in November, a 12% quarter on quarter increase.
Var published its second quarter 2022 results on Tuesday, in which it reported total income for the first six months of $4.9bn.
Production for Q2 totalled 210 thousand barrels of oil equivalent per day (kboepd), a decrease from 242 kboepd in the first quarter.
Torger Rod, chief executive of Var, said: “The continued strong cash flow generation reflects another quarter of safe and efficient operations with high commodity prices and stable production and supply of gas to our customers in Europe.
“This supports our commitment to deliver on our strategy and a USD 1 billion minimum dividend expectation for 2022.
“Second-quarter production was impacted by seasonally high maintenance and turnaround activity across own and partner -operated licenses.
“Var Energi executed maintenance on operated fields according to plan. We also made good progress on the development projects which together with a strengthened organisation position Var Energi to become a net producer of 350,000 barrels of oil and gas per day by the end of 2025.”
Var was launched in 2018 through the merger of Eni Norge, which owns 69.85%, and Point Resources, a HitecVision company, with 30.15%.
Earlier this year the pair announced their intent to launch an initial public offering for the company – it was listed on the Oslo Bors stock exchange in February.
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