Note 1 Corporate information
The financial statements of V\u00e5r Energi ASA for the twelve months period ended 31 December 2025 were authorised for issue in accordance with a Board resolution on 20 March 2026.
V\u00e5r Energi ASA is a public limited liability company incorporated and domiciled in Norway and the Company's shares are listed on Oslo Stock Exchange. The head office is located at Vestre Svanholmen 1, 4313 Sandnes, Norway.
V\u00e5r Energi is an independent exploration and production (E&P) company with a\u00a0diverse portfolio of production, development and exploration assets on the Norwegian Continental Shelf (NCS).
As of 31 December 2025, V\u00e5r Energi ASA had three subsidiaries that were not consolidated into the 2025 group accounts since these subsidiaries are immaterial.
V\u00e5r Energi Marine AS and PR Jotun DA
There are no business activities in these companies as of 31 December 2025. The\u00a0balance sheets of the subsidiaries hold tax\u00a0positions of USD 11.6 million which are offset by receivables towards V\u00e5r Energi\u00a0ASA. The tax positions are presented as tax liabilities\u00a0in V\u00e5r Energi ASA.
V\u00e5r Energi CCS AS
V\u00e5r Energi CCS AS is the operator for Iroko CCS\u00a0ANS and partner in Trudvang CCS ANS. As\u00a0of\u00a0December 31 2025, the Company's total asset base stands at USD 18.2 million.
The table on the right show the group structure per\u00a031\u00a0December 2025.
Shares in subsidiaries | ||
Name | Business location | Voting/Ownership 2025 |
V\u00e5r Energi Marine AS | Sandnes, Norway | 100% |
V\u00e5r Energi CCS AS | Sandnes, Norway | 100% |
PR Jotun DA | Sandnes, Norway | 5% |
Shares in subsidiaries indirectly owned | ||
Name | Business location | Voting/Ownership 2025 |
PR Jotun DA | Sandnes, Norway | 95% |
Note 2 Summary of IFRS accounting principles
2. Significant accounting policies
2.1 Basis of preparation
The financial statements of the Company have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU and the Norwegian Accounting Act. The\u00a0financial statements have been prepared on a historical cost basis, except for certain financial instruments that have been measured at fair value. The financial statements have been prepared based on the assumption of going concern. The Company has three subsidiaries per 31 December 2025 which are not consolidated into group accounts for 2025 since these subsidiaries are immaterial.
All figures in the financial statements are presented in USD and all values are rounded to the nearest million, except when otherwise indicated. V\u00e5r Energi\u2019s functional currency is NOK, but the Company has chosen to present its financial statements in USD, primarily as this is the common presentation currency among upstream oil & gas companies.
Transactions in foreign currencies are recorded\u00a0at the exchange rate on the transaction date. Monetary items are measured at year-end exchange rates and the corresponding currency loss / gain is recognised in profit or loss.
For presentation purposes, balance sheet items are translated from functional currency to presentation currency using spot rates at the balance sheet date. Items within profit or loss and other comprehensive income are translated from functional currency to presentation currency using monthly average exchange rates, or rates at the dates of the transactions if significantly different. For share capital, share premium and hybrid capital historical exchange rates are used. I.e. these equity items are not re-translated and the cumulative translation adjustment (CTA) only include the cumulative differences between opening and closing rates on total net assets, and average to closing rates on retained earnings and other performance statement items, such as the cash flow hedge reserve.
Comparative information has been provided for the previous period.
2.2 Summary of significant accounting\u00a0policies
Business combinations and goodwill\u00a0\u00a0
Business combinations are accounted for using the acquisition method. Identifiable assets, liabilities and contingent liabilities are measured at fair value at the date of acquisition. Acquisition cost is measured against the fair value of the acquired assets and liabilities. Identifiable intangible assets are included to the extent they may be separated from other assets or meet the legal contractual criteria. If the acquisition cost at the time of the acquisition exceeds the fair value of the acquired net assets, goodwill arises. Acquisition\u00a0date is the date on which
the acquirer achieves control over the acquiree and is set at completion date. The valuation is based on currently available information on fair values as of the acquisition date. Calculation of fair value has been obtained by discounting expected cash flows from future operations to get to the net present value. If new information becomes available within 12 months from the acquisition date and provisional purchase price allocation, the Company may make changes to the purchase price allocation. Working interests in licences on the Norwegian Continental Shelf (NCS) are only sold in a post-tax market. I.e. the acquirer generally takes over the tax written down values of the seller and is therefore not entitled to a tax deduction for the consideration paid over and above the seller\u2019s tax values. A provision for deferred taxes on the difference between the acquisition cost and the transferred tax depreciation bases is made. The offsetting entry to this deferred tax liability is goodwill. Consequently, in addition to ordinary goodwill as discussed above, goodwill also arises as a technical effect of deferred taxes recognised for the after-tax consideration paid in business combinations for assets acquired under section 10 of the Norwegian Petroleum Tax Act. After initial recognition, goodwill is not depreciated, but tested for impairment when there are indications of impairment and at least annually. Goodwill impairments cannot be reversed in later periods if impairment indicators are no longer\u00a0present.
Revenue and over- and underlift balances
Revenue from the sale of liquids or gas is recognised at the point in time when V\u00e5r\u00a0Energi\u2019s contractual performance obligations have been fulfilled and control is transferred to the customer. This will generally be at the time of delivery which is also when title passes to the customer. Revenues are recognised on the basis of volumes lifted and sold to customers during the period (sales method). To the extent the Company has lifted and sold more than its entitled share of production based on the ownership interest, an accrual is recognised at cost. To the extent the Company has lifted and sold less than its entitled share of production, costs are deferred for the underlift.
Interests in joint arrangements
V\u00e5r Energi has interests in licences on the Norwegian Continental Shelf. A joint arrangement is defined as an arrangement over which two or more parties have joint control. Joint control is the contractually agreed sharing of control which exists only when decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require unanimous consent of the parties sharing control.
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. V\u00e5r Energi recognises investments in joint operations (oil and gas
production licences) by reporting its share of related revenues, expenses, assets, liabilities and cash flows under the respective items in the Company's financial statements.
For those licences that are not deemed to be joint arrangements pursuant to the definition above as there is no joint control (\"undivided interests\"), the Company recognises its share of related expenses, assets, liabilities and cash flows. The terms \"joint operations\" and \"undivided interests\" are used interchangeably throughout the financial statements.
Income taxes
Income taxes include current taxes payable or refundable, adjustments of prior years\u2019 taxes payable and deferred taxes. The deferred taxes are calculated using the full liability method, under which tax on temporary differences between the carrying amounts of assets and liabilities and their tax bases are recognised. Deferred tax assets are recognised to the extent it is probable that the asset will be realised. An \"uncertain tax treatment\" is a tax treatment relating to which there is uncertainty whether the relevant tax authority will accept the tax treatment under the local tax law. Uncertain tax positions are recognised and presented as assets or liabilities depending on whether an outflow or inflow of economic resources embodying economic benefits has become probable. Taxes relating to items recognised in OCI are recognised in OCI.
Exploration costs
Exploration drilling costs are treated in accordance with the successful efforts
method; each well making the basis for the evaluation. Costs related to exploration wells in progress and exploration wells with finds are capitalised until the evaluation of the well has been completed. Such capitalised costs may remain capitalised for more than one year. The main criteria for keeping exploration costs capitalised are that there is a plan for future activity in the licence area and a development decision is expected in the near future. To\u00a0the extent that no resources are discovered, or recovery of the resources is considered commercially unviable, the capitalised exploration expenditures are charged to the profit or loss. Other exploration costs, including seismic studies, are expensed as incurred.
Development expenditures
The development phase commences when the licence partners have decided field evaluation. Direct and indirect expenditures and financing costs related to development projects are capitalised.
Property, plant and equipment
Property, plant and equipment (PPE) are measured at depreciated cost adjusted for impairments. Capital spare parts are defined as critical, often tailormade long-lead items purchased in connection with development of a field and are recognised as PPE. Upon disposal or retirement, the difference between any proceeds and the carrying amount is recognised as gains or losses.
Maintenance is expensed as incurred, whereas costs for improving and upgrading production
facilities are added to the acquisition cost and depreciated with the related asset.
Depreciation
Offshore installations are depreciated in accordance with the unit-of-production method based on proven and probable reserves (the ratio between annual production quantity and the reserves, whereupon the reserves are updated quarterly). Management has revised the estimation technique in 2025, from previously using proven reserves, 1P and 1PD, to apply 2P reserves (proved + probable) for facilities and 2PD reserves (proved + probable developed) for wells. This\u00a0was implemented for Balder/Ringhorne and Johan Castberg in the third quarter and for the remaining portfolio in fourth quarter. Depreciation estimation were adjusted to better reflect the actual consumption of economic benefits. The adjustment is treated as a change in accounting estimate and provides a more even depreciation profile over time, strengthening the alignment between expected earnings and associated costs. The change reduced DD&A expenses in 2025 by approximately USD 300 million. Onshore assets continue to be depreciated on a straight-line basis over their estimated useful lives, ranging from 3 to 15 years.
Impairment
Tangible fixed assets are assessed for potential impairment when events or changes in circumstances indicate that the book value of the assets is higher than their recoverable amounts. The unit of account for assessment of impairment is the lowest level for which
independent cash inflows are possible to identify. For oil and gas assets, this is typically the field or licence level, but can also be at a hub level. Impairment is recognised when the carrying amount of the cash generating unit (CGU), including any allocated goodwill, exceeds the recoverable amount. The\u00a0recoverable amount is the higher of the asset\u2019s fair value less costs of disposal and its value in use. When estimating value in use and fair value less costs of disposal, expected future cash flows are discounted to the net present value applying a discount rate after tax that reflects the current market valuation of the time value of money and risks specific to the asset or CGU. The discount rate is derived from a weighted average cost of capital (WACC) determination. For the purpose of impairment testing the lifetime of the field is normally determined to be the time when the operating cash flows from the field becomes negative. A\u00a0previously recognised impairment can only be reversed if changes to the estimates used for the calculation of the recoverable amount have been observed. Reversals are recognised in profit or loss. After an impairment loss or a reversal, the depreciation amount is adjusted on a prospective basis in order to distribute the asset\u2019s revised book value, minus any residual value, on a systematic basis over the asset\u2019s expected remaining life.
Inventories
Consumable spare parts and drilling stock are\u00a0measured at weighted average cost. Physical stock of crude oil is measured at production cost.
Asset retirement obligations
V\u00e5r Energi recognises an asset retirement obligation (ARO) when an asset is installed at the field location. V\u00e5r Energi recognises its share of the estimated AROs based on its working interest in the various fields both for V\u00e5r Energi operated fields and partner operated fields. When the liability is initially recognised, the present value of the estimated costs is capitalised by increasing the carrying amount of the related tangible oil and gas asset and depreciated over the useful life of the asset (generally by the application of the unit-of-production method).
The discount rate used to discount the liability is based on a risk-free interest rate that reflects current market assessments and does not include the Company\u2019s credit risk. The periodic unwinding of the discount is recognised in profit or loss as financial items.
The term of the discount rates used is aligned with the estimated timing of the removal, plugging and decommissioning activities at the fields. Changes in the estimated timing or cost of decommissioning are dealt with prospectively by recording an adjustment to the provision and a corresponding adjustment to assets.
Upon retirement of the Gassled pipelines, the costs of ARO will be recharged to the users (shippers) of the pipelines based on shipped volumes. As a shipper V\u00e5r Energi has incurred such liabilities. These liabilities have also been recognised as the net present value of estimated future retirement costs on the basis
of accumulated shipped volumes in Other non-current liabilities.
Pension liability
V\u00e5r Energi has a defined contribution pension plan and a defined benefit penison plan, that both satisfies the statutory requirements in the Norwegian law on required occupational pension (\u201clov om obligatorisk tjenestepensjon\u201d). Defined contributions insurance plans are charged to profit or loss in the period to which the contributions relate. The defined benefit pension plan is accounted for based on a linear vested principle and on expected salaries at the point of retirement. Changes in pension schemes are amortised over the remaining vesting period. Estimated deviations are charged to OCI. Social security tax is included in the pension cost and liability.
Leasing commitments
At the inception of a contract, V\u00e5r Energi assesses whether the contract is, or contains, a lease. The lease liability is recognised at the commencement date and measured at the present value of the remaining lease payments, discounted using the Company\u2019s incremental borrowing rate at the commencement date. The borrowing rate is derived from the terms of the Company\u2019s existing credit facilities. The corresponding right of use assets are depreciated over the lease term. V\u00e5r Energi applies the exemption for short term leases (12\u00a0months or less) and low value leases. As such, related lease payments are not recognised in the balance sheet but expensed or capitalised in line with the accounting treatment for other non-lease expenses.
The inclusion of non-lease components may vary across different lease categories, but for the most material classes of assets (rigs and supply vessels), the Company has excluded the non-lease components when measuring the lease liability. V\u00e5r Energi, as operator of an unincorporated joint operation, from time to time, enters into a lease contract as the sole signatory and recognises on the balance sheet: (i) the entire lease liability if, based on the contractual provisions and any other relevant facts and circumstances, it has primary responsibility for the liability towards the third party supplier; and (ii) the entire right-of-use asset, unless, the terms and conditions of the joint operation and other arrangements are separately negotiated with the non-operators and effectively extinguish V\u00e5r Energi\u2019s primary obligation for the lease with the third-party supplier.
If a lease contract is signed by all the partners, V\u00e5r Energi recognises its share of the right-of-use asset and lease liability on the balance sheet based on its working interest. If\u00a0V\u00e5r\u00a0Energi does not have primary responsibility for the lease liability, it does not recognise any right-of-use asset and lease liability related to the lease contract. Whether a contract is entered into on behalf of the licence is subject to a contract specific assessment.
Other lease contracts, such as offices and supply vessels not linked to specific fields, are recognised on a gross basis even when the related cashflows are charged to the licence partners. For such contracts, the partner\u2019s
share of the costs recovered by the Company are presented as other income.
Operators on licences in which V\u00e5r Energi is a partner may enter into lease contracts in their own name at the initial signing, and subsequently formally sublease the related asset to operated licences. In such cases, the sublease will be the basis for determining both the right of use, commencement, and the duration of the lease (and the application of the short-term lease exemption).
Financial assets and liabilities
V\u00e5r Energi\u2019s financial assets and liabilities comprise non-listed equity instruments, derivative financial instruments (assets and liabilities), receivables, cash and cash equivalents, payables, other current and non-current liabilities. The classification of financial assets and liabilities at initial recognition depends on the financial instrument\u2019s contractual cash flow characteristics and the Company\u2019s business model for managing them.
V\u00e5r Energi classifies its financial instruments in\u00a0the following categories:
Financial assets and liabilities at amortised\u00a0cost
Derivative financial assets and liabilities designated as accounting hedge instruments (cash flow hedges) for which the effective portion is recognised at fair value through other comprehensive income
Financial assets at fair value through profit\u00a0and loss
V\u00e5r Energi measures financial assets at amortised cost if both of the following conditions are met:
The financial instrument is held within a business model with the objective to hold the instruments in order to collect contractual cash flows and the contractual terms of the financial instrument give rise on specified dates to or requires cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment testing. Gains and losses are recognised in profit or loss when the instrument is derecognised, modified or impaired. The Company's financial instruments at amortised cost includes trade receivables and other short-term deposits, trade payables and other current and non-current liabilities. Receivables are initially recognised at fair value less estimated credit losses (impairment losses). Accounts receivables that do not contain a significant financing component are measured at the transaction price.
V\u00e5r Energi ASA issued a EUR 750 million Subordinated Fixed Rate Reset Securities due on the 15th of November 2083.
Under the terms and conditions of the bond agreement, V\u00e5r Energi has the right at its sole discretion to defer and ultimately not pay interest on the bond. If interest is not paid, dividends cannot be paid. The principal value
of the bond is however repayable and due on 15 Nov 2083.
Under IAS 32 para 15, V\u00e5r Energi has recognized the net present value of the principal as debt in the balance sheet on initial recognition. The difference between the Proceeds and debt recognized is recorded as equity Costs incurred in issuing the hybrid bond are accounted for as a deduction from equity. Interest incurred will be accounted for as a decrease of equity upon payment of the related contractual payment obligation (the \u201cInterest Payment Date\u201d); consistently with the accounting treatment of dividends. Interests relating to the hybrid bond are not recognised on an accrual basis.
Derivative financial instruments
V\u00e5r Energi uses derivative financial instruments, such as put options and advanced collar structures, to hedge its hydrocarbon commodity price risks on production volumes (cash flow hedges). Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and subsequently re-measured at fair value. The Company has designated these options structures as cash flow hedges relating to expected future production and sales of hydrocarbons, and applied hedge accounting. The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income (OCI) and the hedge reserve in equity, while any ineffective portion is recognised immediately in profit or loss. Amounts accumulated in the hedge reserve are reclassified to profit or loss when the hedged transaction affects profit or loss.
Option premiums paid (time value at date of purchase) are treated as cost of hedging and presented in operating expenses when the hedged transaction affects profit or loss, while the intrinsic value (\u201cin-the-money value\u201d) on put options exercised are presented in gains on cash flow hedges in petroleum revenues. As\u00a0option premiums are paid at exercise or expiry they are presented as current liabilities in the balance sheet.
Contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument, or by exchanging financial instruments, as if the contracts were financial instruments, are accounted for as financial instruments. However, contracts that are entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the Company's expected purchase, sale or usage requirements, also referred to as own-use contracts, are not accounted for as financial instruments. Such sales and purchases of physical commodity volumes are reflected in profit or loss as Petroleum revenues and Operating expenses, respectively. This is applicable to a number of contracts for the sale of natural gas, which are recognised upon delivery of the volumes.
Interest rate swaps are accounted for as fair value hedges. Interest swaps are reflected at fair value with fair value changes to be accounted for as other financial income/ expenses. Bond debt designated as the hedged item is recognized at fair value at initial recognition and subsequently at amortized
cost. The carrying value of the hedged item is adjusted to reflect changes in interest level with fair value changes are accounted for as other financial income/expenses. Inefficiencies in the hedging relationship are measured and accounted for as other financial income/ expenses.
Cash flow statement
The statement of cash flows has been prepared in accordance with the indirect method. Cash\u00a0consist of cash, bank deposits and short-term deposits in affiliated banks.
Sale and swaps of assets
Sale of assets on the Norwegian continental shelf are carried out on an after-tax basis according to the petroleum tax act \u00a7 10. When\u00a0entering into agreements regarding the purchase/ swap of assets, the parties agree on an effective date for the takeover of the net cash flow (usually 1 January in the calendar year, which is also normally the effective date).
In the period between the effective date and the completion date, the seller will include revenues and expenditures relating to its sold share of the licence in its financial statements. In accordance with the purchase agreement, there is a settlement with the seller of the net cash flows from the asset in the period from the effective date to the completion date (pro & contra settlement). The pro & contra settlement will result in an adjustment to the seller\u2019s losses/gains and to the cost of the assets for the purchaser, in that the settlement (after a tax reduction) is deemed to be part of the consideration in the transaction. Revenues
and expenses from the relevant licence are included in the purchaser\u2019s profit or loss from the acquisition date.
For tax purposes, the purchaser will include the net cash flow (pro & contra) and any other income and costs as from the effective date. When acquiring licences that are defined as asset acquisitions, no provision is made for deferred tax in accordance with the initial recognition exemption. A gain or loss related to an after-tax-based sale of assets includes the release of tax liabilities previously recognised related to the assets. The resulting after-tax gain or loss is recognised in other operating income.
Important accounting judgements, estimates and assumptions
The preparation of financial statements requires management to make judgements, estimates and assumptions that have an effect on the application of accounting principles and the reported assets, liabilities, income and expenses. The main significant judgements management has made regarding the application of accounting principles are the following:
Identifying a lease within joint operating\u00a0arrangements
When identifying leases in situations where the asset is being used in a joint arrangement or in relation to an undivided interest, significant judgement is required in determining what party is the primary obligor, whether the arrangement constitutes or contains a lease, commencement date,
lease term and whether there is a sublease arrangement.
Oil and gas reserves
Oil and gas reserves are estimated by the Company\u2019s experts in accordance with industry standards. The estimates are based on V\u00e5r Energi\u2019s own assessment of internal information and information received from operators. Reserves are certified by an external party, which also issues an independent reserves report. Oil and gas reserves consist of the estimated quantities of crude oil, natural gas and condensates shown by geological and technical data to be recoverable with reasonable certainty from known reservoirs under existing economic and operational conditions, i.e. on the date that the estimates are prepared. Current market prices are used when establishing the estimates.
Reserves and production volumes are used to calculate the depreciation of oil and gas fields by applying the unit-of-production method. Reserve estimates are also used as basis for impairment testing of licence-related assets and goodwill. Changes in petroleum prices and cost estimates may change reserve estimates and accordingly economic cut-off, which may impact the timing of assumed decommissioning and removal activities. Changes to reserve estimates can also result from updated production and reservoir information. Future changes to oil and gas reserves can have a material effect on depreciation, life of field, impairment of licence-related assets and goodwill, and\u00a0operating results.
Successful Effort Method - exploration and exploration potential
Expenses relating to the drilling of exploration wells and exploration potential (presented in other intangible assets) are temporarily recognised on the balance sheet as capitalised exploration expenditures and other intangible assets, pending an evaluation of potential oil and gas discoveries. If resources are not discovered, or if recovery of the resources is considered technically or commercially unviable, the costs of exploration wells and exploration potential are expensed. Judgments\u00a0as to whether these assets should remain capitalised or be expensed at the reporting date may materially affect the operating result for the period.
Fair value measurement
The fair values of non-financial assets and liabilities are required to be determined, for example in a business combination, to determine the allocation of purchase price in an asset deal or when the recoverable amount of an asset or CGU is based on fair value less costs to sell. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability.
A fair value measurement of a non-financial asset takes into account a market participant\u2019s ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use. V\u00e5r Energi uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. The fair value of oil fields in the production and development phase is generally based on discounted cash flow models, where the determination of inputs to the models may require significant judgement, as described in the section below regarding impairment.
Impairment/reversal of impairment
Changes in the expected future value/cash flows of CGUs results in impairment if the estimated recoverable amount is lower than the book value (including any allocated goodwill) or the reversal of previously recognised impairments if the recoverable value is higher than the book value (impairment of goodwill is not reversed). Estimation of recoverable amounts involves the use of judgement and assumptions, including the modelling of future cash flows to estimate the CGUs value in use or fair value less costs of\u00a0disposal.
Impairment assessments require long-term assumptions concerning a number of often volatile economic factors, including future oil prices, oil production, currency exchange rates and discount rates. Such assumptions require the estimation of relevant factors such as long-term prices, the levels of capex and opex, production estimates, decommissioning
costs and impact from climate changes. These\u00a0evaluations are also necessary to determine a CGU\u2019s fair value unless information can be obtained from an actual observable market transaction. See individual notes on Property, plant and equipment and intangible assets, including goodwill and note on Impairment for details of impairments.
Asset retirement obligations
There is significant uncertainty in the estimate of ARO. These estimates are based on currently applicable laws and regulations, and existing technologies. Many decommissioning activities will take place decades into the future, and the technology and related costs are expected to evolve over time. The estimates include costs based on expected removal concepts using existing technology and estimated costs of maritime operations, hiring of lifting vessels and drilling rigs. As a result, there may be significant adjustments to the estimates of ARO and associated assets that can affect future financial results.
Income taxes
Income taxes are significant amounts in V\u00e5r\u00a0Energi's financial statements. There may be uncertainties related to interpretation of applicable tax laws and regulations regarding amounts in V\u00e5r Energi\u2019s filed tax returns. In\u00a0cases of uncertain tax treatments, it may take a long time to complete the discussions with the tax authorities or to reach resolutions of the appropriate tax positions. The carrying values of income tax related assets and liabilities are based on V\u00e5r Energi's interpretations of applicable laws, regulations
and relevant court decisions. The quality of these estimates, including the most likely outcomes of uncertain tax treatments, is highly dependent upon proper application of very complex sets of rules and the recognition of changes in applicable rules.
Hybrid bond
When accounting for a hybrid bond without mandatory payable interest coupons the instrument is split in an equity portion and a liability portion in line with the guidance for compound financial instruments (IAS 32). The embedded redemption option is deemed not to be closely related to the underlying financial liability and is therefore separated. In measuring the option, only the contractual cash flows, and not the expected cash flows, are used which lead to a value close to nil (as the coupons may be deferred infinitely). This approach also leads to the debt being measured using only the contractual cash flows, and not the expected cash flows.
Standards and amendments issued but\u00a0not yet effective
None of the amendments to IFRS Accounting Standards effective from 1 January 2025 has had a significant impact on the financial statements. Certain new accounting standards and amendments to standards are issued, but not yet effective as of 31 December 2025. V\u00e5r Energi is currently working to identify all impacts the IFRS 18 amendments will have on\u00a0the primary financial statement and the notes to the financial statement.
2.1 Basis of preparation
The financial statements of the Company have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU and the Norwegian Accounting Act. The\u00a0financial statements have been prepared on a historical cost basis, except for certain financial instruments that have been measured at fair value. The financial statements have been prepared based on the assumption of going concern. The Company has three subsidiaries per 31 December 2025 which are not consolidated into group accounts for 2025 since these subsidiaries are immaterial.
All figures in the financial statements are presented in USD and all values are rounded to the nearest million, except when otherwise indicated. V\u00e5r Energi\u2019s functional currency is NOK, but the Company has chosen to present its financial statements in USD, primarily as this is the common presentation currency among upstream oil & gas companies.
Transactions in foreign currencies are recorded\u00a0at the exchange rate on the transaction date. Monetary items are measured at year-end exchange rates and the corresponding currency loss / gain is recognised in profit or loss.
For presentation purposes, balance sheet items are translated from functional currency to presentation currency using spot rates at the balance sheet date. Items within profit or loss and other comprehensive income are translated from functional currency to presentation currency using monthly average exchange rates, or rates at the dates of the transactions if significantly different. For share capital, share premium and hybrid capital historical exchange rates are used. I.e. these equity items are not re-translated and the cumulative translation adjustment (CTA) only include the cumulative differences between opening and closing rates on total net assets, and average to closing rates on retained earnings and other performance statement items, such as the cash flow hedge reserve.
Comparative information has been provided for the previous period.
Standards and amendments issued but\u00a0not yet effective
None of the amendments to IFRS Accounting Standards effective from 1 January 2025 has had a significant impact on the financial statements. Certain new accounting standards and amendments to standards are issued, but not yet effective as of 31 December 2025. V\u00e5r Energi is currently working to identify all impacts the IFRS 18 amendments will have on\u00a0the primary financial statement and the notes to the financial statement.
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Business combinations are accounted for using the acquisition method. Identifiable assets, liabilities and contingent liabilities are measured at fair value at the date of acquisition. Acquisition cost is measured against the fair value of the acquired assets and liabilities. Identifiable intangible assets are included to the extent they may be separated from other assets or meet the legal contractual criteria. If the acquisition cost at the time of the acquisition exceeds the fair value of the acquired net assets, goodwill arises. Acquisition\u00a0date is the date on which
the acquirer achieves control over the acquiree and is set at completion date. The valuation is based on currently available information on fair values as of the acquisition date. Calculation of fair value has been obtained by discounting expected cash flows from future operations to get to the net present value. If new information becomes available within 12 months from the acquisition date and provisional purchase price allocation, the Company may make changes to the purchase price allocation. Working interests in licences on the Norwegian Continental Shelf (NCS) are only sold in a post-tax market. I.e. the acquirer generally takes over the tax written down values of the seller and is therefore not entitled to a tax deduction for the consideration paid over and above the seller\u2019s tax values. A provision for deferred taxes on the difference between the acquisition cost and the transferred tax depreciation bases is made. The offsetting entry to this deferred tax liability is goodwill. Consequently, in addition to ordinary goodwill as discussed above, goodwill also arises as a technical effect of deferred taxes recognised for the after-tax consideration paid in business combinations for assets acquired under section 10 of the Norwegian Petroleum Tax Act. After initial recognition, goodwill is not depreciated, but tested for impairment when there are indications of impairment and at least annually. Goodwill impairments cannot be reversed in later periods if impairment indicators are no longer\u00a0present.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__19": { "value": "Revenue and over- and underlift balances
Revenue from the sale of liquids or gas is recognised at the point in time when V\u00e5r\u00a0Energi\u2019s contractual performance obligations have been fulfilled and control is transferred to the customer. This will generally be at the time of delivery which is also when title passes to the customer. Revenues are recognised on the basis of volumes lifted and sold to customers during the period (sales method). To the extent the Company has lifted and sold more than its entitled share of production based on the ownership interest, an accrual is recognised at cost. To the extent the Company has lifted and sold less than its entitled share of production, costs are deferred for the underlift.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__20": { "value": "Interests in joint arrangements
V\u00e5r Energi has interests in licences on the Norwegian Continental Shelf. A joint arrangement is defined as an arrangement over which two or more parties have joint control. Joint control is the contractually agreed sharing of control which exists only when decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require unanimous consent of the parties sharing control.
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. V\u00e5r Energi recognises investments in joint operations (oil and gas
production licences) by reporting its share of related revenues, expenses, assets, liabilities and cash flows under the respective items in the Company's financial statements.
For those licences that are not deemed to be joint arrangements pursuant to the definition above as there is no joint control (\"undivided interests\"), the Company recognises its share of related expenses, assets, liabilities and cash flows. The terms \"joint operations\" and \"undivided interests\" are used interchangeably throughout the financial statements.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__21": { "value": "Interests in joint arrangements
V\u00e5r Energi has interests in licences on the Norwegian Continental Shelf. A joint arrangement is defined as an arrangement over which two or more parties have joint control. Joint control is the contractually agreed sharing of control which exists only when decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require unanimous consent of the parties sharing control.
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. V\u00e5r Energi recognises investments in joint operations (oil and gas
production licences) by reporting its share of related revenues, expenses, assets, liabilities and cash flows under the respective items in the Company's financial statements.
For those licences that are not deemed to be joint arrangements pursuant to the definition above as there is no joint control (\"undivided interests\"), the Company recognises its share of related expenses, assets, liabilities and cash flows. The terms \"joint operations\" and \"undivided interests\" are used interchangeably throughout the financial statements.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__22": { "value": "Income taxes
Income taxes include current taxes payable or refundable, adjustments of prior years\u2019 taxes payable and deferred taxes. The deferred taxes are calculated using the full liability method, under which tax on temporary differences between the carrying amounts of assets and liabilities and their tax bases are recognised. Deferred tax assets are recognised to the extent it is probable that the asset will be realised. An \"uncertain tax treatment\" is a tax treatment relating to which there is uncertainty whether the relevant tax authority will accept the tax treatment under the local tax law. Uncertain tax positions are recognised and presented as assets or liabilities depending on whether an outflow or inflow of economic resources embodying economic benefits has become probable. Taxes relating to items recognised in OCI are recognised in OCI.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__23": { "value": "Exploration costs
Exploration drilling costs are treated in accordance with the successful efforts
method; each well making the basis for the evaluation. Costs related to exploration wells in progress and exploration wells with finds are capitalised until the evaluation of the well has been completed. Such capitalised costs may remain capitalised for more than one year. The main criteria for keeping exploration costs capitalised are that there is a plan for future activity in the licence area and a development decision is expected in the near future. To\u00a0the extent that no resources are discovered, or recovery of the resources is considered commercially unviable, the capitalised exploration expenditures are charged to the profit or loss. Other exploration costs, including seismic studies, are expensed as incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExplorationAndEvaluationExpenditures", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__24-1": { "value": "Exploration costs
Exploration drilling costs are treated in accordance with the successful efforts
method; each well making the basis for the evaluation. Costs related to exploration wells in progress and exploration wells with finds are capitalised until the evaluation of the well has been completed. Such capitalised costs may remain capitalised for more than one year. The main criteria for keeping exploration costs capitalised are that there is a plan for future activity in the licence area and a development decision is expected in the near future. To\u00a0the extent that no resources are discovered, or recovery of the resources is considered commercially unviable, the capitalised exploration expenditures are charged to the profit or loss. Other exploration costs, including seismic studies, are expensed as incurred.
Development expenditures
The development phase commences when the licence partners have decided field evaluation. Direct and indirect expenditures and financing costs related to development projects are capitalised.
Depreciation
Offshore installations are depreciated in accordance with the unit-of-production method based on proven and probable reserves (the ratio between annual production quantity and the reserves, whereupon the reserves are updated quarterly). Management has revised the estimation technique in 2025, from previously using proven reserves, 1P and 1PD, to apply 2P reserves (proved + probable) for facilities and 2PD reserves (proved + probable developed) for wells. This\u00a0was implemented for Balder/Ringhorne and Johan Castberg in the third quarter and for the remaining portfolio in fourth quarter. Depreciation estimation were adjusted to better reflect the actual consumption of economic benefits. The adjustment is treated as a change in accounting estimate and provides a more even depreciation profile over time, strengthening the alignment between expected earnings and associated costs. The change reduced DD&A expenses in 2025 by approximately USD 300 million. Onshore assets continue to be depreciated on a straight-line basis over their estimated useful lives, ranging from 3 to 15 years.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__26": { "value": "Property, plant and equipment
Property, plant and equipment (PPE) are measured at depreciated cost adjusted for impairments. Capital spare parts are defined as critical, often tailormade long-lead items purchased in connection with development of a field and are recognised as PPE. Upon disposal or retirement, the difference between any proceeds and the carrying amount is recognised as gains or losses.
Maintenance is expensed as incurred, whereas costs for improving and upgrading production
facilities are added to the acquisition cost and depreciated with the related asset.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__28": { "value": "Depreciation
Offshore installations are depreciated in accordance with the unit-of-production method based on proven and probable reserves (the ratio between annual production quantity and the reserves, whereupon the reserves are updated quarterly). Management has revised the estimation technique in 2025, from previously using proven reserves, 1P and 1PD, to apply 2P reserves (proved + probable) for facilities and 2PD reserves (proved + probable developed) for wells. This\u00a0was implemented for Balder/Ringhorne and Johan Castberg in the third quarter and for the remaining portfolio in fourth quarter. Depreciation estimation were adjusted to better reflect the actual consumption of economic benefits. The adjustment is treated as a change in accounting estimate and provides a more even depreciation profile over time, strengthening the alignment between expected earnings and associated costs. The change reduced DD&A expenses in 2025 by approximately USD 300 million. Onshore assets continue to be depreciated on a straight-line basis over their estimated useful lives, ranging from 3 to 15 years.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__29": { "value": "Depreciation
Offshore installations are depreciated in accordance with the unit-of-production method based on proven and probable reserves (the ratio between annual production quantity and the reserves, whereupon the reserves are updated quarterly). Management has revised the estimation technique in 2025, from previously using proven reserves, 1P and 1PD, to apply 2P reserves (proved + probable) for facilities and 2PD reserves (proved + probable developed) for wells. This\u00a0was implemented for Balder/Ringhorne and Johan Castberg in the third quarter and for the remaining portfolio in fourth quarter. Depreciation estimation were adjusted to better reflect the actual consumption of economic benefits. The adjustment is treated as a change in accounting estimate and provides a more even depreciation profile over time, strengthening the alignment between expected earnings and associated costs. The change reduced DD&A expenses in 2025 by approximately USD 300 million. Onshore assets continue to be depreciated on a straight-line basis over their estimated useful lives, ranging from 3 to 15 years.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__30-1": { "value": "Impairment
Tangible fixed assets are assessed for potential impairment when events or changes in circumstances indicate that the book value of the assets is higher than their recoverable amounts. The unit of account for assessment of impairment is the lowest level for which
independent cash inflows are possible to identify. For oil and gas assets, this is typically the field or licence level, but can also be at a hub level. Impairment is recognised when the carrying amount of the cash generating unit (CGU), including any allocated goodwill, exceeds the recoverable amount. The\u00a0recoverable amount is the higher of the asset\u2019s fair value less costs of disposal and its value in use. When estimating value in use and fair value less costs of disposal, expected future cash flows are discounted to the net present value applying a discount rate after tax that reflects the current market valuation of the time value of money and risks specific to the asset or CGU. The discount rate is derived from a weighted average cost of capital (WACC) determination. For the purpose of impairment testing the lifetime of the field is normally determined to be the time when the operating cash flows from the field becomes negative. A\u00a0previously recognised impairment can only be reversed if changes to the estimates used for the calculation of the recoverable amount have been observed. Reversals are recognised in profit or loss. After an impairment loss or a reversal, the depreciation amount is adjusted on a prospective basis in order to distribute the asset\u2019s revised book value, minus any residual value, on a systematic basis over the asset\u2019s expected remaining life.
Impairment/reversal of impairment
Changes in the expected future value/cash flows of CGUs results in impairment if the estimated recoverable amount is lower than the book value (including any allocated goodwill) or the reversal of previously recognised impairments if the recoverable value is higher than the book value (impairment of goodwill is not reversed). Estimation of recoverable amounts involves the use of judgement and assumptions, including the modelling of future cash flows to estimate the CGUs value in use or fair value less costs of\u00a0disposal.
Impairment assessments require long-term assumptions concerning a number of often volatile economic factors, including future oil prices, oil production, currency exchange rates and discount rates. Such assumptions require the estimation of relevant factors such as long-term prices, the levels of capex and opex, production estimates, decommissioning
costs and impact from climate changes. These\u00a0evaluations are also necessary to determine a CGU\u2019s fair value unless information can be obtained from an actual observable market transaction. See individual notes on Property, plant and equipment and intangible assets, including goodwill and note on Impairment for details of impairments.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__31": { "value": "Inventories
Consumable spare parts and drilling stock are\u00a0measured at weighted average cost. Physical stock of crude oil is measured at production cost.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__32-1": { "value": "Asset retirement obligations
V\u00e5r Energi recognises an asset retirement obligation (ARO) when an asset is installed at the field location. V\u00e5r Energi recognises its share of the estimated AROs based on its working interest in the various fields both for V\u00e5r Energi operated fields and partner operated fields. When the liability is initially recognised, the present value of the estimated costs is capitalised by increasing the carrying amount of the related tangible oil and gas asset and depreciated over the useful life of the asset (generally by the application of the unit-of-production method).
The discount rate used to discount the liability is based on a risk-free interest rate that reflects current market assessments and does not include the Company\u2019s credit risk. The periodic unwinding of the discount is recognised in profit or loss as financial items.
The term of the discount rates used is aligned with the estimated timing of the removal, plugging and decommissioning activities at the fields. Changes in the estimated timing or cost of decommissioning are dealt with prospectively by recording an adjustment to the provision and a corresponding adjustment to assets.
Upon retirement of the Gassled pipelines, the costs of ARO will be recharged to the users (shippers) of the pipelines based on shipped volumes. As a shipper V\u00e5r Energi has incurred such liabilities. These liabilities have also been recognised as the net present value of estimated future retirement costs on the basis
of accumulated shipped volumes in Other non-current liabilities.
Asset retirement obligations
There is significant uncertainty in the estimate of ARO. These estimates are based on currently applicable laws and regulations, and existing technologies. Many decommissioning activities will take place decades into the future, and the technology and related costs are expected to evolve over time. The estimates include costs based on expected removal concepts using existing technology and estimated costs of maritime operations, hiring of lifting vessels and drilling rigs. As a result, there may be significant adjustments to the estimates of ARO and associated assets that can affect future financial results.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDecommissioningRestorationAndRehabilitationProvisionsExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__33": { "value": "Pension liability
V\u00e5r Energi has a defined contribution pension plan and a defined benefit penison plan, that both satisfies the statutory requirements in the Norwegian law on required occupational pension (\u201clov om obligatorisk tjenestepensjon\u201d). Defined contributions insurance plans are charged to profit or loss in the period to which the contributions relate. The defined benefit pension plan is accounted for based on a linear vested principle and on expected salaries at the point of retirement. Changes in pension schemes are amortised over the remaining vesting period. Estimated deviations are charged to OCI. Social security tax is included in the pension cost and liability.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__34": { "value": "Leasing commitments
At the inception of a contract, V\u00e5r Energi assesses whether the contract is, or contains, a lease. The lease liability is recognised at the commencement date and measured at the present value of the remaining lease payments, discounted using the Company\u2019s incremental borrowing rate at the commencement date. The borrowing rate is derived from the terms of the Company\u2019s existing credit facilities. The corresponding right of use assets are depreciated over the lease term. V\u00e5r Energi applies the exemption for short term leases (12\u00a0months or less) and low value leases. As such, related lease payments are not recognised in the balance sheet but expensed or capitalised in line with the accounting treatment for other non-lease expenses.
The inclusion of non-lease components may vary across different lease categories, but for the most material classes of assets (rigs and supply vessels), the Company has excluded the non-lease components when measuring the lease liability. V\u00e5r Energi, as operator of an unincorporated joint operation, from time to time, enters into a lease contract as the sole signatory and recognises on the balance sheet: (i) the entire lease liability if, based on the contractual provisions and any other relevant facts and circumstances, it has primary responsibility for the liability towards the third party supplier; and (ii) the entire right-of-use asset, unless, the terms and conditions of the joint operation and other arrangements are separately negotiated with the non-operators and effectively extinguish V\u00e5r Energi\u2019s primary obligation for the lease with the third-party supplier.
If a lease contract is signed by all the partners, V\u00e5r Energi recognises its share of the right-of-use asset and lease liability on the balance sheet based on its working interest. If\u00a0V\u00e5r\u00a0Energi does not have primary responsibility for the lease liability, it does not recognise any right-of-use asset and lease liability related to the lease contract. Whether a contract is entered into on behalf of the licence is subject to a contract specific assessment.
Other lease contracts, such as offices and supply vessels not linked to specific fields, are recognised on a gross basis even when the related cashflows are charged to the licence partners. For such contracts, the partner\u2019s
share of the costs recovered by the Company are presented as other income.
Operators on licences in which V\u00e5r Energi is a partner may enter into lease contracts in their own name at the initial signing, and subsequently formally sublease the related asset to operated licences. In such cases, the sublease will be the basis for determining both the right of use, commencement, and the duration of the lease (and the application of the short-term lease exemption).
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__35": { "value": "Financial assets and liabilities
V\u00e5r Energi\u2019s financial assets and liabilities comprise non-listed equity instruments, derivative financial instruments (assets and liabilities), receivables, cash and cash equivalents, payables, other current and non-current liabilities. The classification of financial assets and liabilities at initial recognition depends on the financial instrument\u2019s contractual cash flow characteristics and the Company\u2019s business model for managing them.
V\u00e5r Energi classifies its financial instruments in\u00a0the following categories:
Financial assets and liabilities at amortised\u00a0cost
Derivative financial assets and liabilities designated as accounting hedge instruments (cash flow hedges) for which the effective portion is recognised at fair value through other comprehensive income
Financial assets at fair value through profit\u00a0and loss
V\u00e5r Energi measures financial assets at amortised cost if both of the following conditions are met:
The financial instrument is held within a business model with the objective to hold the instruments in order to collect contractual cash flows and the contractual terms of the financial instrument give rise on specified dates to or requires cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment testing. Gains and losses are recognised in profit or loss when the instrument is derecognised, modified or impaired. The Company's financial instruments at amortised cost includes trade receivables and other short-term deposits, trade payables and other current and non-current liabilities. Receivables are initially recognised at fair value less estimated credit losses (impairment losses). Accounts receivables that do not contain a significant financing component are measured at the transaction price.
V\u00e5r Energi ASA issued a EUR 750 million Subordinated Fixed Rate Reset Securities due on the 15th of November 2083.
Under the terms and conditions of the bond agreement, V\u00e5r Energi has the right at its sole discretion to defer and ultimately not pay interest on the bond. If interest is not paid, dividends cannot be paid. The principal value
of the bond is however repayable and due on 15 Nov 2083.
Under IAS 32 para 15, V\u00e5r Energi has recognized the net present value of the principal as debt in the balance sheet on initial recognition. The difference between the Proceeds and debt recognized is recorded as equity Costs incurred in issuing the hybrid bond are accounted for as a deduction from equity. Interest incurred will be accounted for as a decrease of equity upon payment of the related contractual payment obligation (the \u201cInterest Payment Date\u201d); consistently with the accounting treatment of dividends. Interests relating to the hybrid bond are not recognised on an accrual basis.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__36": { "value": "Derivative financial instruments
V\u00e5r Energi uses derivative financial instruments, such as put options and advanced collar structures, to hedge its hydrocarbon commodity price risks on production volumes (cash flow hedges). Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and subsequently re-measured at fair value. The Company has designated these options structures as cash flow hedges relating to expected future production and sales of hydrocarbons, and applied hedge accounting. The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income (OCI) and the hedge reserve in equity, while any ineffective portion is recognised immediately in profit or loss. Amounts accumulated in the hedge reserve are reclassified to profit or loss when the hedged transaction affects profit or loss.
Option premiums paid (time value at date of purchase) are treated as cost of hedging and presented in operating expenses when the hedged transaction affects profit or loss, while the intrinsic value (\u201cin-the-money value\u201d) on put options exercised are presented in gains on cash flow hedges in petroleum revenues. As\u00a0option premiums are paid at exercise or expiry they are presented as current liabilities in the balance sheet.
Contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument, or by exchanging financial instruments, as if the contracts were financial instruments, are accounted for as financial instruments. However, contracts that are entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the Company's expected purchase, sale or usage requirements, also referred to as own-use contracts, are not accounted for as financial instruments. Such sales and purchases of physical commodity volumes are reflected in profit or loss as Petroleum revenues and Operating expenses, respectively. This is applicable to a number of contracts for the sale of natural gas, which are recognised upon delivery of the volumes.
Interest rate swaps are accounted for as fair value hedges. Interest swaps are reflected at fair value with fair value changes to be accounted for as other financial income/ expenses. Bond debt designated as the hedged item is recognized at fair value at initial recognition and subsequently at amortized
cost. The carrying value of the hedged item is adjusted to reflect changes in interest level with fair value changes are accounted for as other financial income/expenses. Inefficiencies in the hedging relationship are measured and accounted for as other financial income/ expenses.
Cash flow statement
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__37": { "value": "Derivative financial instruments
V\u00e5r Energi uses derivative financial instruments, such as put options and advanced collar structures, to hedge its hydrocarbon commodity price risks on production volumes (cash flow hedges). Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and subsequently re-measured at fair value. The Company has designated these options structures as cash flow hedges relating to expected future production and sales of hydrocarbons, and applied hedge accounting. The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income (OCI) and the hedge reserve in equity, while any ineffective portion is recognised immediately in profit or loss. Amounts accumulated in the hedge reserve are reclassified to profit or loss when the hedged transaction affects profit or loss.
Option premiums paid (time value at date of purchase) are treated as cost of hedging and presented in operating expenses when the hedged transaction affects profit or loss, while the intrinsic value (\u201cin-the-money value\u201d) on put options exercised are presented in gains on cash flow hedges in petroleum revenues. As\u00a0option premiums are paid at exercise or expiry they are presented as current liabilities in the balance sheet.
Contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument, or by exchanging financial instruments, as if the contracts were financial instruments, are accounted for as financial instruments. However, contracts that are entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the Company's expected purchase, sale or usage requirements, also referred to as own-use contracts, are not accounted for as financial instruments. Such sales and purchases of physical commodity volumes are reflected in profit or loss as Petroleum revenues and Operating expenses, respectively. This is applicable to a number of contracts for the sale of natural gas, which are recognised upon delivery of the volumes.
Interest rate swaps are accounted for as fair value hedges. Interest swaps are reflected at fair value with fair value changes to be accounted for as other financial income/ expenses. Bond debt designated as the hedged item is recognized at fair value at initial recognition and subsequently at amortized
cost. The carrying value of the hedged item is adjusted to reflect changes in interest level with fair value changes are accounted for as other financial income/expenses. Inefficiencies in the hedging relationship are measured and accounted for as other financial income/ expenses.
Cash flow statement
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__38": { "value": "The statement of cash flows has been prepared in accordance with the indirect method. Cash\u00a0consist of cash, bank deposits and short-term deposits in affiliated banks. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__39": { "value": "Sale and swaps of assets
Sale of assets on the Norwegian continental shelf are carried out on an after-tax basis according to the petroleum tax act \u00a7 10. When\u00a0entering into agreements regarding the purchase/ swap of assets, the parties agree on an effective date for the takeover of the net cash flow (usually 1 January in the calendar year, which is also normally the effective date).
In the period between the effective date and the completion date, the seller will include revenues and expenditures relating to its sold share of the licence in its financial statements. In accordance with the purchase agreement, there is a settlement with the seller of the net cash flows from the asset in the period from the effective date to the completion date (pro & contra settlement). The pro & contra settlement will result in an adjustment to the seller\u2019s losses/gains and to the cost of the assets for the purchaser, in that the settlement (after a tax reduction) is deemed to be part of the consideration in the transaction. Revenues
and expenses from the relevant licence are included in the purchaser\u2019s profit or loss from the acquisition date.
For tax purposes, the purchaser will include the net cash flow (pro & contra) and any other income and costs as from the effective date. When acquiring licences that are defined as asset acquisitions, no provision is made for deferred tax in accordance with the initial recognition exemption. A gain or loss related to an after-tax-based sale of assets includes the release of tax liabilities previously recognised related to the assets. The resulting after-tax gain or loss is recognised in other operating income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognisingDifferenceBetweenFairValueAtInitialRecognitionAndAmountDeterminedUsingValuationTechniqueExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__40": { "value": "Important accounting judgements, estimates and assumptions
The preparation of financial statements requires management to make judgements, estimates and assumptions that have an effect on the application of accounting principles and the reported assets, liabilities, income and expenses. The main significant judgements management has made regarding the application of accounting principles are the following:
Identifying a lease within joint operating\u00a0arrangements
When identifying leases in situations where the asset is being used in a joint arrangement or in relation to an undivided interest, significant judgement is required in determining what party is the primary obligor, whether the arrangement constitutes or contains a lease, commencement date,
lease term and whether there is a sublease arrangement.
Oil and gas reserves
Oil and gas reserves are estimated by the Company\u2019s experts in accordance with industry standards. The estimates are based on V\u00e5r Energi\u2019s own assessment of internal information and information received from operators. Reserves are certified by an external party, which also issues an independent reserves report. Oil and gas reserves consist of the estimated quantities of crude oil, natural gas and condensates shown by geological and technical data to be recoverable with reasonable certainty from known reservoirs under existing economic and operational conditions, i.e. on the date that the estimates are prepared. Current market prices are used when establishing the estimates.
Reserves and production volumes are used to calculate the depreciation of oil and gas fields by applying the unit-of-production method. Reserve estimates are also used as basis for impairment testing of licence-related assets and goodwill. Changes in petroleum prices and cost estimates may change reserve estimates and accordingly economic cut-off, which may impact the timing of assumed decommissioning and removal activities. Changes to reserve estimates can also result from updated production and reservoir information. Future changes to oil and gas reserves can have a material effect on depreciation, life of field, impairment of licence-related assets and goodwill, and\u00a0operating results.
Successful Effort Method - exploration and exploration potential
Expenses relating to the drilling of exploration wells and exploration potential (presented in other intangible assets) are temporarily recognised on the balance sheet as capitalised exploration expenditures and other intangible assets, pending an evaluation of potential oil and gas discoveries. If resources are not discovered, or if recovery of the resources is considered technically or commercially unviable, the costs of exploration wells and exploration potential are expensed. Judgments\u00a0as to whether these assets should remain capitalised or be expensed at the reporting date may materially affect the operating result for the period.
Fair value measurement
The fair values of non-financial assets and liabilities are required to be determined, for example in a business combination, to determine the allocation of purchase price in an asset deal or when the recoverable amount of an asset or CGU is based on fair value less costs to sell. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability.
A fair value measurement of a non-financial asset takes into account a market participant\u2019s ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use. V\u00e5r Energi uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. The fair value of oil fields in the production and development phase is generally based on discounted cash flow models, where the determination of inputs to the models may require significant judgement, as described in the section below regarding impairment.
Impairment/reversal of impairment
Changes in the expected future value/cash flows of CGUs results in impairment if the estimated recoverable amount is lower than the book value (including any allocated goodwill) or the reversal of previously recognised impairments if the recoverable value is higher than the book value (impairment of goodwill is not reversed). Estimation of recoverable amounts involves the use of judgement and assumptions, including the modelling of future cash flows to estimate the CGUs value in use or fair value less costs of\u00a0disposal.
Impairment assessments require long-term assumptions concerning a number of often volatile economic factors, including future oil prices, oil production, currency exchange rates and discount rates. Such assumptions require the estimation of relevant factors such as long-term prices, the levels of capex and opex, production estimates, decommissioning
costs and impact from climate changes. These\u00a0evaluations are also necessary to determine a CGU\u2019s fair value unless information can be obtained from an actual observable market transaction. See individual notes on Property, plant and equipment and intangible assets, including goodwill and note on Impairment for details of impairments.
Asset retirement obligations
There is significant uncertainty in the estimate of ARO. These estimates are based on currently applicable laws and regulations, and existing technologies. Many decommissioning activities will take place decades into the future, and the technology and related costs are expected to evolve over time. The estimates include costs based on expected removal concepts using existing technology and estimated costs of maritime operations, hiring of lifting vessels and drilling rigs. As a result, there may be significant adjustments to the estimates of ARO and associated assets that can affect future financial results.
Income taxes
Income taxes are significant amounts in V\u00e5r\u00a0Energi's financial statements. There may be uncertainties related to interpretation of applicable tax laws and regulations regarding amounts in V\u00e5r Energi\u2019s filed tax returns. In\u00a0cases of uncertain tax treatments, it may take a long time to complete the discussions with the tax authorities or to reach resolutions of the appropriate tax positions. The carrying values of income tax related assets and liabilities are based on V\u00e5r Energi's interpretations of applicable laws, regulations
and relevant court decisions. The quality of these estimates, including the most likely outcomes of uncertain tax treatments, is highly dependent upon proper application of very complex sets of rules and the recognition of changes in applicable rules.
Hybrid bond
When accounting for a hybrid bond without mandatory payable interest coupons the instrument is split in an equity portion and a liability portion in line with the guidance for compound financial instruments (IAS 32). The embedded redemption option is deemed not to be closely related to the underlying financial liability and is therefore separated. In measuring the option, only the contractual cash flows, and not the expected cash flows, are used which lead to a value close to nil (as the coupons may be deferred infinitely). This approach also leads to the debt being measured using only the contractual cash flows, and not the expected cash flows.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__41": { "value": "Oil and gas reserves
Oil and gas reserves are estimated by the Company\u2019s experts in accordance with industry standards. The estimates are based on V\u00e5r Energi\u2019s own assessment of internal information and information received from operators. Reserves are certified by an external party, which also issues an independent reserves report. Oil and gas reserves consist of the estimated quantities of crude oil, natural gas and condensates shown by geological and technical data to be recoverable with reasonable certainty from known reservoirs under existing economic and operational conditions, i.e. on the date that the estimates are prepared. Current market prices are used when establishing the estimates.
Reserves and production volumes are used to calculate the depreciation of oil and gas fields by applying the unit-of-production method. Reserve estimates are also used as basis for impairment testing of licence-related assets and goodwill. Changes in petroleum prices and cost estimates may change reserve estimates and accordingly economic cut-off, which may impact the timing of assumed decommissioning and removal activities. Changes to reserve estimates can also result from updated production and reservoir information. Future changes to oil and gas reserves can have a material effect on depreciation, life of field, impairment of licence-related assets and goodwill, and\u00a0operating results.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForOilAndGasAssetsExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__42": { "value": "Fair value measurement
The fair values of non-financial assets and liabilities are required to be determined, for example in a business combination, to determine the allocation of purchase price in an asset deal or when the recoverable amount of an asset or CGU is based on fair value less costs to sell. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability.
A fair value measurement of a non-financial asset takes into account a market participant\u2019s ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use. V\u00e5r Energi uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. The fair value of oil fields in the production and development phase is generally based on discounted cash flow models, where the determination of inputs to the models may require significant judgement, as described in the section below regarding impairment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__45": { "value": "Income taxes
Income taxes are significant amounts in V\u00e5r\u00a0Energi's financial statements. There may be uncertainties related to interpretation of applicable tax laws and regulations regarding amounts in V\u00e5r Energi\u2019s filed tax returns. In\u00a0cases of uncertain tax treatments, it may take a long time to complete the discussions with the tax authorities or to reach resolutions of the appropriate tax positions. The carrying values of income tax related assets and liabilities are based on V\u00e5r Energi's interpretations of applicable laws, regulations
and relevant court decisions. The quality of these estimates, including the most likely outcomes of uncertain tax treatments, is highly dependent upon proper application of very complex sets of rules and the recognition of changes in applicable rules.
Hybrid bond
When accounting for a hybrid bond without mandatory payable interest coupons the instrument is split in an equity portion and a liability portion in line with the guidance for compound financial instruments (IAS 32). The embedded redemption option is deemed not to be closely related to the underlying financial liability and is therefore separated. In measuring the option, only the contractual cash flows, and not the expected cash flows, are used which lead to a value close to nil (as the coupons may be deferred infinitely). This approach also leads to the debt being measured using only the contractual cash flows, and not the expected cash flows.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__47": { "value": "Note 3 Business combination
Each identifiable asset and liability are measured at fair value on the acquisition date based on guidance in IFRS 13. The standard defines fair value as the price that would be received when selling an asset or paid transfer a liability in an orderly transaction between market participants at the measurement date. This definition emphasises that fair value is a market-based measurement and not an entity-specific measurement. When measuring fair value V\u00e5r\u00a0Energi has applied the assumptions that market participants would use under current market conditions (including assumptions regarding risk) when valuing the specific asset or liability.
On 17 December 2025 the Company completed the acquisition of Total Energies\u2019 share in the Ekofisk Previously Produced Fields project. V\u00e5r Energi ASA paid a cash consideration of USD\u00a0181.7 million, including the agreed cash consideration of USD 147 million and a settlement of costs incurred in the period from 1 January 2025 to completion. The acquisition is regarded as a\u00a0business combination and has been accounted for in accordance with IFRS 3.
USD million | 17 Dec 2025 |
Value of cash consideration | 181.7 |
Goodwill | 121.4 |
Property, plant and equipment | 155.6 |
Tax receivable | 28.5 |
Total assets | 305.4 |
Deferred tax liabilities | 119.5 |
Other current liabilities | 4.3 |
Total liabilities | 123.8 |
Net asset and liabilities recognized | 181.7 |
Fair value of consideration paid on acquisition | 181.7 |
Goodwill as a result of deferred tax - technical goodwill | 121.4 |
Net goodwill from the acquisition of Ekofisk PPF | 121.4 |
Note 3 Business combination continued
On 31 January 2024, V\u00e5r Energi completed the acquisition of Neptune Energy Norway AS (renamed V\u00e5r Energi Norge AS at completion of the transaction) and was from 31 January operating as a fully-owned subsidiary of V\u00e5r Energi. As of 8 June 2024 the wholly owned subsidiary V\u00e5r Energi Norge AS was merged with the parent company V\u00e5r Energi ASA. The\u00a0transaction was announced on 23 June 2023.
V\u00e5r Energi paid a cash consideration of USD\u00a02.1\u00a0billion, and the transaction was financed through available liquidity and credit facilities. The acquired assets, all located on the NCS, are complementary to V\u00e5r Energi\u2019s current portfolio and highly cash generative with low production cost and limited near-term investments. The transaction also strengthens V\u00e5r Energi\u2019s position in all existing hub areas and combine two strong organisations with extensive NCS experience.
The acquisition date for accounting purposes is 1 January 2024. The acquisition is regarded as a business combination and has been accounted for in accordance with IFRS 3. A\u00a0purchase price allocation (PPA) has been performed as of 1 January 2024 to allocate the consideration to fair value of the assets and liabilities in Neptune Energy Norway AS. Acquired property, plant and equipment has been valued using the income approach. Trade receivables have been recognised at full contractual amounts due as they relate to large and credit-worthy customers, and there have been no significant uncollectible amounts in Neptune Energy Norway AS historically.
USD million | 31 Jan 2024 |
Value of cash consideration | 2 106.8 |
For accounting purposes, the recognised amounts of assets and liabilities assumed as at the date of the acquisition were as follows:
USD million | 01 Jan 2024 |
Goodwill | 1 529.9 |
Other intangible assets | 192.5 |
Property, plant and equipment | 1 976.3 |
Right of use assets | 10.5 |
Other non-current assets | 8.2 |
Inventories | 19.5 |
Trade receivables | 174.2 |
Other current receivables and financial assets | 191.4 |
Cash and cash equivalents | 776.1 |
Total assets | 4 878.6 |
Deferred tax liabilities | 1 120.9 |
Asset retirement obligation | 368.3 |
Pension liabilities | 23.6 |
Lease liabilities, non-current | 7.0 |
Other non-current liabilities | 284.8 |
Accounts payable | 81.7 |
Taxes payable | 705.9 |
Lease liabilities, current | 3.5 |
Other current liabilities | 176.2 |
Total liabilities | 2 771.9 |
Net assets and liabilities recognised | 2 106.8 |
Fair value of consideration paid on acquisition | 2 106.8 |
Note 3 Business combination continued
The goodwill of USD 1 530 million arises principally because of the following factors:
The ability to capture synergies that can be realised from managing a larger portfolio of both acquired and existing fields on the Norwegian Continental Shelf, including workforce (\"residual goodwill\").
The requirement to recognise deferred tax assets and liabilities for the difference between the assigned fair values and the tax bases of assets acquired and liabilities assumed in a business combination. Licences under development and licences in production can only be sold in a market after tax, based on a decision made by the Norwegian Ministry of Finance pursuant to the Petroleum Taxation Act Section 10. The assessment of fair value of such licences is therefore based on cash flows after tax. Nevertheless, in accordance with IAS 12 para 15 and 19, a provision is made for deferred tax corresponding to the tax rate multiplied by the difference between the acquisition cost and the tax base. The\u00a0offsetting entry to this deferred tax is goodwill. Hence, goodwill arises as a technical effect of deferred tax (\"technical goodwill\").
None of the goodwill recognised will be deductible for tax purposes.
USD million | 01 Jan 2024 |
Goodwill related to synergies - residual goodwill | 218.9 |
Goodwill as a result of deferred tax - technical goodwill | 1 310.9 |
Net goodwill from the acquisition of Neptune Norway | 1 529.9 |
In the first quarter of 2025 a reallocation of the PPA value has been performed due to new information available. The PP&E has been decreased by USD 24 million, Goodwill has been increased by USD 66 million, Other non-current liabilities has been increased by USD 252 million and Deferred tax has been decreased by USD 210 million compared to the fourth quarter of 2024. The purchase price allocations above are final and based on currently available information about fair values as of the acquisition date, in accordance with guidance in IFRS 3
Note 4 Segment information
The Company operates within the geographical area Norway and the Company\u2019s business is entirely related to exploration for and production of petroleum in Norway. The Company\u2019s activities are considered to have a homogeneous risk and return profile before tax. The Company operates within a single operating segment which matches the internal reporting to the Company\u2019s Executive management who is also the Chief Operating Decision Maker (CODM).
Note 5 Income
Petroleum revenues (USD million) | Note | 2025 | 2024 |
Revenue from crude oil sales | 32 | 5 273.9 | 4 557.8 |
Revenue from gas sales | 32 | 2 456.9 | 2 428.0 |
Revenue from NGL sales | 32 | 234.8 | 378.8 |
Gains on cash flow hedge - crude put options | 22 | - | 7.8 |
Total petroleum revenues | 7 965.7 | 7 372.3 | |
Sales of crude (boe million) | 77.3 | 56.3 | |
Sales of gas (boe million) | 33.4 | 33.4 | |
Sales of NGL (boe million) | 5.4 | 8.0 | |
Other operating income (USD million) | 2025 | 2024 | |
Gain/(loss) from sale of assets | 0.0 | 43.3 | |
Partner share of lease cost | 43.3 | 14.9 | |
Other operating income | 86.6 | 19.6 | |
Total other operating income | 130.0 | 77.7 |
The majority of petroleum revenues come from sales to Eni S.p.A. companies (see note 32), which\u00a0are located outside Norway but within the EU/UK.
As of 31 December\u00a02025, approximately 14% of the Company\u2019s gas production for the first, second\u00a0and third quarter of 2026 had already been sold through gas year-ahead forward contracts\u00a0entered into during 2025, at an average fixed price of around USD\u00a075 per boe.
The increase in Other operating income during 2025 is primarily due to insurance reimbursements.
Note 5 Income
Petroleum revenues (USD million) | Note | 2025 | 2024 |
Revenue from crude oil sales | 32 | 5 273.9 | 4 557.8 |
Revenue from gas sales | 32 | 2 456.9 | 2 428.0 |
Revenue from NGL sales | 32 | 234.8 | 378.8 |
Gains on cash flow hedge - crude put options | 22 | - | 7.8 |
Total petroleum revenues | 7 965.7 | 7 372.3 | |
Sales of crude (boe million) | 77.3 | 56.3 | |
Sales of gas (boe million) | 33.4 | 33.4 | |
Sales of NGL (boe million) | 5.4 | 8.0 | |
Other operating income (USD million) | 2025 | 2024 | |
Gain/(loss) from sale of assets | 0.0 | 43.3 | |
Partner share of lease cost | 43.3 | 14.9 | |
Other operating income | 86.6 | 19.6 | |
Total other operating income | 130.0 | 77.7 |
The majority of petroleum revenues come from sales to Eni S.p.A. companies (see note 32), which\u00a0are located outside Norway but within the EU/UK.
As of 31 December\u00a02025, approximately 14% of the Company\u2019s gas production for the first, second\u00a0and third quarter of 2026 had already been sold through gas year-ahead forward contracts\u00a0entered into during 2025, at an average fixed price of around USD\u00a075 per boe.
The increase in Other operating income during 2025 is primarily due to insurance reimbursements.
Note 6 Production costs
USD million | Note | 2025 | 2024 |
Cost of operations | 867.3 | 888.6 | |
Transportation and processing | 243.2 | 237.2 | |
Environmental taxes | 178.3 | 133.9 | |
Insurance premium | 55.5 | 54.0 | |
Production cost based on produced volumes | 1 344.2 | 1 313.7 | |
Back-up cost shuttle tankers | 9.1 | 27.1 | |
Changes in over/(underlift) | -90.1 | 29.6 | |
Premium expense for crude put options | 22 | 31.9 | 32.5 |
Production cost based on sold volumes | 1 295.0 | 1 402.9 | |
Total produced volumes (boe 1000) | 121.3 | 102.5 | |
Production cost per boe produced (USD/boe) | 11.1 | 12.8 |
Note 7 Staff costs and remuneration
Staff costs and remuneration1
USD million | Note | 2025 | 2024 |
Salary expenses | 286.3 | 281.1 | |
Social security tax (incl. pension and social charges for foreign personnel) | 59.1 | 47.2 | |
Pension cost | 8 | 19.8 | 20.1 |
Other personnel expenses | 36.6 | 11.5 | |
Total | 401.8 | 359.9 | |
Average number of employees | 1 430.0 | 1 397.0 | |
1The share charged to partners in operated joint ventures amounted to USD 93.9 million (USD 91.4 million in 2024). |
Employee share savings plan and loans
V\u00e5r Energi ASA's share saving program gives employees the opportunity to buy shares in V\u00e5r\u00a0Energi ASA for 5% of the base salary. If the shares are retained for two full calendar years with continuous employment after the end of the saving year, the employees will be awarded a\u00a0bonus share for each share they have purchased. This will be settled by V\u00e5r Energi ASA buying shares in the market. The\u00a0award\u00a0is\u00a0treated as equity settled. In 2025 employees subscribed for USD\u00a07.221\u00a0million as a part of the share saving plan (USD 6.135 million in 2024).
V\u00e5r Energi has made arrangements to provide subsidized loans to local employees. No other loans, guarantees or other commitments have been granted to any member of the Board or to any member of the Executive Committee.
Compensation to the Board of Directors and Executive Committee2
USD 1000 | 2025 | 2024 |
Short-term employee benefits | 6.3 | 6.3 |
Post-employment benefits | 0.6 | 0.5 |
Share-based payments | 2.1 | 1.8 |
Total | 9.0 | 8.7 |
2Remuneration is paid in NOK and converted to USD using a yearly average USD/NOK-rate. |
Note 7 Staff costs and remuneration continued
Number of shares owned by the Executive Committee and the Board of Directors
Name | Position | Number of shares per 31.12.25 | Number of shares per 31.12.24 |
Nick Walker | Chief Executive Officer | 972 731 | 672 327 |
Torger R\u00f8d | Chief Operating Officer | 348 663 | 261 845 |
Carlo Santopadre | Chief Financial Officer | 37 798 | - |
Sverre B. Bjelland | EVP Legal, Compliance & Public Affairs | 50 355 | 20 106 |
Tone Rognstad | EVP People, Communication, IT & Digital | 88 542 | 64 606 |
Ellen W. Hoddell | EVP Safety & Sustainability | 58 856 | 39 979 |
Thorhild Widvey | Chair of the Board | 62 142 | 74 320 |
Liv Monica Bargern Stubholt | Deputy Chair of the Board | 41 785 | 41 785 |
Francesco Gattei | Elected by Eni S.p.A | - | - |
Guido Brusco | Elected by Eni S.p.A | - | - |
Francesca Rinaldi | Elected by Eni S.p.A | - | - |
Claudia Almadori | Elected by Eni S.p.A | - | - |
Ole Johan Gillebo | Board member | 10 000 | 10 000 |
Fabio Ignazio Romeo | Board member | - | - |
Jan Inge Nesheim | Employee elected representative | 61 348 | 48 736 |
Martha Skj\u00e6veland | Employee elected representative | 19 253 | 15 408 |
Carl Anders Olof Kjorling | Employee elected representative | 38 171 | 22 157 |
Lilli Sahlman Fagerdal | Employee elected representative | 9 697 | 6 410 |
For further information on compensation to the Board of Directors and Executive Committee, please see Remuneration report on Executive Committee 2025.
Note 8 Pensions
The Company is required to have an occupational pension scheme in accordance with the Norwegian law on required occupational pension (\"lov om obligatorisk tjenestepensjon\"). The\u00a0Company's pension scheme meets the requirements of that law.
The Company has a retirement benefit plan for all permanent staff which gives the employees the right to receive future pensions. The main pension plan for the Company is defined contribution plans which also includes certain unfunded plans. In addition there is a closed defined benefit plan for employees and former employees, in total 25 members. The defined benefit plan is managed and financed up to 12G1through DNB Livsforsikring AS. The remainder above 12G is financed through normal operation. The pension cost are pensions premiums for the current period.
Cost
USD million | 2025 | 2024 |
Defined contribution pension scheme | 19.0 | 25.8 |
Defined benefit pension scheme | 0.8 | -5.7 |
Total pension cost | 19.8 | 20.12 |
The value of the various penison schemes are mainly dependent on the number of years in service and the level of compensation at retirement. A part of the contributions are provided for as notional contributions, where the liability increases with a promised rate of return, set equal to the actual return of investment through the ordinary defined contribution plan. For the defined benefit plan, the benefit to be received by employees depends on several factors such as employment duration, future salary and retirement date.
1G (Grunnbel\u00f8pet), means the basic amount of the Norwegian national insurance scheme.
2The 2024 pension cost has been changed compared to 2024 Annual Report due to a classification error in 2024 between pension cost and salary of USD 20.6 million.
Asset/liability
USD million | 2025 | 2024 |
Pension benefit obligations | 16.2 | 20.7 |
Plan assets | -17.5 | -14.3 |
Yield assets | -0.6 | -0.4 |
Defined contribution pension schemes | 14.7 | 9.5 |
Net pension liability | 12.9 | 15.5 |
Financial assumptions
2025 | 2 024 | |
Discount rate | 4.00% | 3.30% |
Expected increase in salaries | 4.00% | 3.50% |
Expected increase in pensions | 2.70% | 1.90% |
Expected increase of social security base amount (G) | 3.75% | 3.25% |
Expected return on plan assets | 4.00% | 3.30% |
Note 7 Staff costs and remuneration
Staff costs and remuneration1
USD million | Note | 2025 | 2024 |
Salary expenses | 286.3 | 281.1 | |
Social security tax (incl. pension and social charges for foreign personnel) | 59.1 | 47.2 | |
Pension cost | 8 | 19.8 | 20.1 |
Other personnel expenses | 36.6 | 11.5 | |
Total | 401.8 | 359.9 | |
Average number of employees | 1 430.0 | 1 397.0 | |
1The share charged to partners in operated joint ventures amounted to USD 93.9 million (USD 91.4 million in 2024). |
Employee share savings plan and loans
V\u00e5r Energi ASA's share saving program gives employees the opportunity to buy shares in V\u00e5r\u00a0Energi ASA for 5% of the base salary. If the shares are retained for two full calendar years with continuous employment after the end of the saving year, the employees will be awarded a\u00a0bonus share for each share they have purchased. This will be settled by V\u00e5r Energi ASA buying shares in the market. The\u00a0award\u00a0is\u00a0treated as equity settled. In 2025 employees subscribed for USD\u00a07.221\u00a0million as a part of the share saving plan (USD 6.135 million in 2024).
V\u00e5r Energi has made arrangements to provide subsidized loans to local employees. No other loans, guarantees or other commitments have been granted to any member of the Board or to any member of the Executive Committee.
Compensation to the Board of Directors and Executive Committee2
USD 1000 | 2025 | 2024 |
Short-term employee benefits | 6.3 | 6.3 |
Post-employment benefits | 0.6 | 0.5 |
Share-based payments | 2.1 | 1.8 |
Total | 9.0 | 8.7 |
2Remuneration is paid in NOK and converted to USD using a yearly average USD/NOK-rate. |
Note 7 Staff costs and remuneration continued
Number of shares owned by the Executive Committee and the Board of Directors
Name | Position | Number of shares per 31.12.25 | Number of shares per 31.12.24 |
Nick Walker | Chief Executive Officer | 972 731 | 672 327 |
Torger R\u00f8d | Chief Operating Officer | 348 663 | 261 845 |
Carlo Santopadre | Chief Financial Officer | 37 798 | - |
Sverre B. Bjelland | EVP Legal, Compliance & Public Affairs | 50 355 | 20 106 |
Tone Rognstad | EVP People, Communication, IT & Digital | 88 542 | 64 606 |
Ellen W. Hoddell | EVP Safety & Sustainability | 58 856 | 39 979 |
Thorhild Widvey | Chair of the Board | 62 142 | 74 320 |
Liv Monica Bargern Stubholt | Deputy Chair of the Board | 41 785 | 41 785 |
Francesco Gattei | Elected by Eni S.p.A | - | - |
Guido Brusco | Elected by Eni S.p.A | - | - |
Francesca Rinaldi | Elected by Eni S.p.A | - | - |
Claudia Almadori | Elected by Eni S.p.A | - | - |
Ole Johan Gillebo | Board member | 10 000 | 10 000 |
Fabio Ignazio Romeo | Board member | - | - |
Jan Inge Nesheim | Employee elected representative | 61 348 | 48 736 |
Martha Skj\u00e6veland | Employee elected representative | 19 253 | 15 408 |
Carl Anders Olof Kjorling | Employee elected representative | 38 171 | 22 157 |
Lilli Sahlman Fagerdal | Employee elected representative | 9 697 | 6 410 |
For further information on compensation to the Board of Directors and Executive Committee, please see Remuneration report on Executive Committee 2025.
Note 9 Auditor\u2019s fee
USD million | 2025 | 2024 |
Statutory audit - PwC | 0.9 | 0.4 |
Statutory audit - EY1 | - | 0.1 |
Other attestations - PwC | 0.9 | 0.2 |
Other attestations - EY | - | 0.1 |
Other services - PwC2 | 0.3 | 0.2 |
Other services - EY | - | 0.0 |
Total fee | 2.1 | 1.0 |
1EY was the auditor for V\u00e5r Energi Norge AS (previously Neptune Energy Norge AS) before the merger. 2Other services primarly include audit-related services, such as agreed-upon procedures for financing. |
Note 10 Other operating expenses
USD million | Note | 2025 | 2024 |
R&D expenses | 45.2 | 38.7 | |
Legal provisions | 3.9 | - | |
Pre-production costs | 47.2 | 55.3 | |
Guarantee fee decommissioning obligation | 18.1 | 18.9 | |
Value adjustment contingent considerations | - | -34.5 | |
Administration expenses | 39.2 | 35.3 | |
Integration cost | - | 17.1 | |
Other expenses | 57.5 | 13.7 | |
Total other operating expenses | 211.0 | 144.6 |
Other expenses during 2025 include Ekofisk restructuring cost of USD 16 million and Halten electrification cancellation cost of USD 10 million.
Note 10 Other operating expenses
USD million | Note | 2025 | 2024 |
R&D expenses | 45.2 | 38.7 | |
Legal provisions | 3.9 | - | |
Pre-production costs | 47.2 | 55.3 | |
Guarantee fee decommissioning obligation | 18.1 | 18.9 | |
Value adjustment contingent considerations | - | -34.5 | |
Administration expenses | 39.2 | 35.3 | |
Integration cost | - | 17.1 | |
Other expenses | 57.5 | 13.7 | |
Total other operating expenses | 211.0 | 144.6 |
Other expenses during 2025 include Ekofisk restructuring cost of USD 16 million and Halten electrification cancellation cost of USD 10 million.
Note 11 Exploration expenses
USD million | Note | 2025 | 2024 |
Seismic | 5.1 | 35.3 | |
Area Fee | 17.2 | 13.8 | |
Dry well expenses | 14 | 173.5 | 119.8 |
Other exploration expenses | 49.7 | 23.3 | |
Total exploration expenses | 245.4 | 192.4 |
Dry well expenses in 2025 are mainly related to exploration wells targeting the Njargasas (PL1110), Elgol (PL1131), Kokopelli (PL1090), Rondeslottet (PL1005), Lit and Svalin M S\u00f8r (PL169), Skred (PL532), Garantiana NW (PL554), Hoffmann (PL1194), Deimos (PL1238), Narvi (PL554C), Camilla Nord (PL248) and Avbitertang (PL554) prospects.
2024 dry well expenses were mainly related to exploration wells targeting the Hubert and Magellan (PL 917), Sn\u00f8ras (PL 1080), Venus (PL 1025S), Brokk/Mju (PL025), Kvernbit (PL 1185) and Kaldafjell (PL 932) prospects.
Note 12 Financial items
USD million | Note | 2025 | 2024 |
Interest income | 19.8 | 25.0 | |
Interest on debts and borrowings | 25 | -353.3 | -349.8 |
Interest on lease debt | 31 | -15.2 | -5.4 |
Capitalised interest cost, development projects | 219.9 | 358.3 | |
Amortisation of fees and expenses | -19.2 | -8.8 | |
Accretion expenses (asset retirement obligation) | 27 | -144.4 | -115.7 |
Other financial expenses | -14.2 | -15.0 | |
Change in fair value of hedges (ineffectiveness) | 22 | -3.6 | 4.4 |
Net financial income / (expenses) | -310.0 | -106.9 | |
Unrealised exchange rate gain / (loss) | 416.5 | -372.1 | |
Realised exchange rate gain / (loss) | 15.3 | 1.6 | |
Net exchange rate gain / (loss) | 431.8 | -370.4 | |
Net financial items | 121.8 | -477.3 |
V\u00e5r Energi's functional currency is NOK, whilst interest bearing loans and bonds are in USD and EUR. The strengthening of NOK during 2025 caused a net exchange rate gain of USD 431.8 million versus a loss in 2024 of USD -370.4 million.
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USD million | 2025 | 2024 | |
Current period tax payable / (receivable) | 2 565.7 | 1 662.0 | |
Prior period adjustments to current tax | 30.4 | 3.5 | |
Current tax expense / (income) | 2 596.1 | 1 665.5 | |
Change in current year deferred tax | 896.0 | 1 320.5 | |
Prior period adjustments to deferred tax | -32.1 | - | |
Deferred tax expense / (income) | 864.0 | 1 320.5 | |
Tax expense / (income) in profit and loss | 3 460.1 | 2 986.0 | |
Effective tax rate in % | 80% | 90% | |
Tax expense / (income) in put option used for hedging and pension | 3.2 | -1.5 | |
Tax expense / (income) in total comprehensive income | 3 463.3 | 2 984.5 | |
Reconciliation of tax expense | Tax rate | 2025 | 2024 |
Marginal (78%) tax rate on profit / loss before tax | 78% | 3 359.2 | 2 584.4 |
Tax effect of uplift | 71.8% | -16.8 | -40.4 |
Impairment of goodwill | 78% | 148.7 | 98.8 |
Tax effects of items taxed at other than marginal (78%) tax rate1 | 56% | -4.5 | 424.5 |
Tax effects on acquisition, sale and swap of licences2 | - | -54.0 | |
Other permanent differences, prior period adjustments and change in estimates of uncertain tax positions | 78% | -26.6 | -27.3 |
Tax expense / (Income) | 3 460.1 | 2 986.0 |
1The items taxed at other than marginal (78%) tax rate are mainly interests and fluctuations in currency exchange rate on the Company's external borrowings.
2Tax effects related to sale of B\u00f8yla and Norne area in 2024.
Temporary timing differences at end of period | 2025 | 2024 |
Tangible fixed assets | 13 820.6 | 11 279.8 |
Capitalised exploration cost | 632.9 | 404.9 |
Other intangible assets | 135.8 | 241.9 |
Abandonment obligation | -3 919.7 | -3 459.9 |
Financial instruments over OCI | - | -14.8 |
Other | -171.7 | 105.1 |
Basis for deferred ordinary taxes | 10 497.8 | 8 557.0 |
Additional depreciation for special tax | 6 297.4 | 5 579.9 |
Temporary differences not relevant for special tax | -130.1 | -125.1 |
Ordinary tax deductible for special tax | -2 362.8 | -2 069.1 |
Basis for deferred special taxes | 14 302.3 | 11 942.6 |
Ordinary tax 22% | -2 309.5 | -1 882.5 |
Special tax 71.8% | -10 269.0 | -8 574.8 |
Valuation allowance for lack of statutory tax deduction at effective rate 6.2% related to abandonment | -39.2 | -43.6 |
Net deferred tax asset / (liability) as of closing balance | -12 617.7 | -10 500.9 |
Note 13 Income taxes continued
Breakdown of tax effect on temporary differences | Note | 2025 | 2024 |
Tangible fixed assets | -15 245.8 | -12 653.6 | |
Capitalised exploration cost | -493.7 | -315.8 | |
Other intangible assets | -105.9 | -188.7 | |
Abandonment obligation | 3 018.4 | 2 655.2 | |
Lease liabilities | 193.4 | 165.3 | |
Financial instruments over OCI | 0.0 | 3.3 | |
Other Provisions | 15.9 | -166.6 | |
Net deferred tax asset / (liability) as of closing balance | -12 617.7 | -10 500.9 | |
Deferred tax asset / (liability) | 2025 | 2024 | |
Deferred tax asset / (liability) at beginning of period | -10 500.9 | -8 943.0 | |
Change in current year deferred tax | -896.0 | -1 320.5 | |
Prior period adjustments | 32.1 | - | |
Deferred taxes related to business combinations1 | 2 | 90.1 | -1 339.8 |
Deferred taxes related to acquisition, sale and swap of licenses2 | - | 13.1 | |
Deferred taxes recognised directly in OCI or equity | -3.2 | 1.5 | |
Currency translation effects | -1 339.6 | 1 087.7 | |
Net deferred tax asset / (liability) as of closing balance | -12 617.7 | -10 500.9 |
Calculated tax payable | Note | 2025 | 2024 |
Tax payable at beginning of period | -681.7 | -964.4 | |
Current period payable taxes | -2 565.7 | -1 662.0 | |
Payable taxes related to business combinations1 | 2 | 28.5 | -707.5 |
Net tax payment | 2 059.1 | 2 523.4 | |
Prior period adjustments and change in estimate of uncertain tax positions | -30.4 | -3.5 | |
Currency translation effects | -126.9 | 132.5 | |
Net tax payable as of closing balance | -1 317.0 | -681.7 |
1Acquisition of Ekofisk PPF share in the fourth quarter of 2025. Acquisition of Neptune Energy Norge in the first quarter of 2024 and\u00a0acquisition of Ringhorne East share in the third quarter of 2024. See note three for more on business combinations.
2Tax effect related to sale of B\u00f8yla and Norne area in 2024.
Note 13 Income taxes
USD million | 2025 | 2024 | |
Current period tax payable / (receivable) | 2 565.7 | 1 662.0 | |
Prior period adjustments to current tax | 30.4 | 3.5 | |
Current tax expense / (income) | 2 596.1 | 1 665.5 | |
Change in current year deferred tax | 896.0 | 1 320.5 | |
Prior period adjustments to deferred tax | -32.1 | - | |
Deferred tax expense / (income) | 864.0 | 1 320.5 | |
Tax expense / (income) in profit and loss | 3 460.1 | 2 986.0 | |
Effective tax rate in % | 80% | 90% | |
Tax expense / (income) in put option used for hedging and pension | 3.2 | -1.5 | |
Tax expense / (income) in total comprehensive income | 3 463.3 | 2 984.5 | |
Reconciliation of tax expense | Tax rate | 2025 | 2024 |
Marginal (78%) tax rate on profit / loss before tax | 78% | 3 359.2 | 2 584.4 |
Tax effect of uplift | 71.8% | -16.8 | -40.4 |
Impairment of goodwill | 78% | 148.7 | 98.8 |
Tax effects of items taxed at other than marginal (78%) tax rate1 | 56% | -4.5 | 424.5 |
Tax effects on acquisition, sale and swap of licences2 | - | -54.0 | |
Other permanent differences, prior period adjustments and change in estimates of uncertain tax positions | 78% | -26.6 | -27.3 |
Tax expense / (Income) | 3 460.1 | 2 986.0 |
1The items taxed at other than marginal (78%) tax rate are mainly interests and fluctuations in currency exchange rate on the Company's external borrowings.
2Tax effects related to sale of B\u00f8yla and Norne area in 2024.
Temporary timing differences at end of period | 2025 | 2024 |
Tangible fixed assets | 13 820.6 | 11 279.8 |
Capitalised exploration cost | 632.9 | 404.9 |
Other intangible assets | 135.8 | 241.9 |
Abandonment obligation | -3 919.7 | -3 459.9 |
Financial instruments over OCI | - | -14.8 |
Other | -171.7 | 105.1 |
Basis for deferred ordinary taxes | 10 497.8 | 8 557.0 |
Additional depreciation for special tax | 6 297.4 | 5 579.9 |
Temporary differences not relevant for special tax | -130.1 | -125.1 |
Ordinary tax deductible for special tax | -2 362.8 | -2 069.1 |
Basis for deferred special taxes | 14 302.3 | 11 942.6 |
Ordinary tax 22% | -2 309.5 | -1 882.5 |
Special tax 71.8% | -10 269.0 | -8 574.8 |
Valuation allowance for lack of statutory tax deduction at effective rate 6.2% related to abandonment | -39.2 | -43.6 |
Net deferred tax asset / (liability) as of closing balance | -12 617.7 | -10 500.9 |
Note 13 Income taxes continued
Breakdown of tax effect on temporary differences | Note | 2025 | 2024 |
Tangible fixed assets | -15 245.8 | -12 653.6 | |
Capitalised exploration cost | -493.7 | -315.8 | |
Other intangible assets | -105.9 | -188.7 | |
Abandonment obligation | 3 018.4 | 2 655.2 | |
Lease liabilities | 193.4 | 165.3 | |
Financial instruments over OCI | 0.0 | 3.3 | |
Other Provisions | 15.9 | -166.6 | |
Net deferred tax asset / (liability) as of closing balance | -12 617.7 | -10 500.9 | |
Deferred tax asset / (liability) | 2025 | 2024 | |
Deferred tax asset / (liability) at beginning of period | -10 500.9 | -8 943.0 | |
Change in current year deferred tax | -896.0 | -1 320.5 | |
Prior period adjustments | 32.1 | - | |
Deferred taxes related to business combinations1 | 2 | 90.1 | -1 339.8 |
Deferred taxes related to acquisition, sale and swap of licenses2 | - | 13.1 | |
Deferred taxes recognised directly in OCI or equity | -3.2 | 1.5 | |
Currency translation effects | -1 339.6 | 1 087.7 | |
Net deferred tax asset / (liability) as of closing balance | -12 617.7 | -10 500.9 |
Calculated tax payable | Note | 2025 | 2024 |
Tax payable at beginning of period | -681.7 | -964.4 | |
Current period payable taxes | -2 565.7 | -1 662.0 | |
Payable taxes related to business combinations1 | 2 | 28.5 | -707.5 |
Net tax payment | 2 059.1 | 2 523.4 | |
Prior period adjustments and change in estimate of uncertain tax positions | -30.4 | -3.5 | |
Currency translation effects | -126.9 | 132.5 | |
Net tax payable as of closing balance | -1 317.0 | -681.7 |
1Acquisition of Ekofisk PPF share in the fourth quarter of 2025. Acquisition of Neptune Energy Norge in the first quarter of 2024 and\u00a0acquisition of Ringhorne East share in the third quarter of 2024. See note three for more on business combinations.
2Tax effect related to sale of B\u00f8yla and Norne area in 2024.
Note 14 Intangible assets
USD million | Note | Goodwill | Other intangible assets | Capitalised exploration wells | Total |
Cost as at 1 January 2024 | 4 344.6 | 83.1 | 276.5 | 4 704.2 | |
Additions | - | 0.1 | 310.5 | 310.6 | |
Additions through business combination | 1 472.9 | 192.5 | - | 1 665.4 | |
Reclassification | - | -3.7 | -2.9 | -6.6 | |
Expensed exploration wells | 11 | - | - | -119.8 | -119.8 |
Disposals | -1.4 | -0.6 | -20.7 | -22.7 | |
Currency translation effects | -566.6 | -28.6 | -38.7 | -633.8 | |
Cost as at 31 December 2024 | 5 249.5 | 242.8 | 404.9 | 5 897.1 | |
Depreciation and impairment as at 1 January 2024 | -2 386.2 | 0.0 | - | -2 386.2 | |
Depreciation | - | -0.9 | - | -0.9 | |
Provision for impairment reversal / (loss) | 17 | -126.6 | - | - | -126.6 |
Disposals | - | - | - | - | |
Currency translation effects | 251.1 | 0.1 | - | 251.2 | |
Depreciation and impairment as at 31 December 2024 | -2 261.6 | -0.9 | - | -2 262.5 | |
Net book value as at 31 December 2024 | 2 987.8 | 241.9 | 404.9 | 3 634.6 |
Other intangible assets include exploration potentials acquired through business combinations and measured according to\u00a0the\u00a0successful efforts method.\t
The total goodwill of USD 2 988 million per 31\u00a0December 2024 consisted of ordinary goodwill (USD 282 million) and technical goodwill (USD\u00a02 706 million).
USD million | Note | Goodwill | Other intangible assets | Capitalised exploration wells | Total | Cost as at 1 January 2025 | 5 249.5 | 242.8 | 404.9 | 5 897.1 |
Additions | - | - | 363.1 | 363.1 | ||||||
Additions through business combination | 187.8 | - | - | 187.8 | ||||||
Reclassification | - | -129.1 | -19.0 | -148.1 | ||||||
Expensed exploration wells | 11 | - | - | -173.5 | -173.5 | |||||
Disposals | -2.2 | -8.6 | - | -10.8 | ||||||
Currency translation effects | 660.3 | 30.6 | 57.4 | 748.4 | ||||||
Cost as at 31 December 2025 | 6 095.3 | 135.8 | 632.9 | 6 863.9 | ||||||
Depreciation and impairment as 1 January 2025 | -2 261.6 | -0.9 | - | -2 262.5 | ||||||
Depreciation | - | -0.3 | - | -0.3 | ||||||
Impairment loss | 17 | -188.4 | - | - | -188.4 | |||||
Disposals | - | 1.0 | - | 1.0 | ||||||
Currency translation effects | -287.1 | 0.2 | - | -287.0 | ||||||
Depreciation and impairment as at 31 December 2025 | -2 737.2 | -0.0 | - | -2 737.2 | ||||||
Net book value as at 31 December 2025 | 3 358.1 | 135.8 | 632.9 | 4 126.8 |
The total goodwill of USD 3 358 million per 31\u00a0December 2025 consists of ordinary goodwill\u00a0(USD 363 million) and technical goodwill (USD 2 995 million).
Note 15 Tangible assets
USD million | Note | Wells and production facilities | Facilities under construction | Other property, plant and equipment | Total |
Cost as at 1 January 2024 | 16 490.2 | 6 310.2 | 86.9 | 22 887.4 | |
Additions | 867.2 | 2 041.3 | 36.6 | 2 945.1 | |
Estimate change asset retirement cost | 27 | 169.0 | - | - | 169.0 |
Additions through business combinations | 3 | 2 014.2 | - | 2.0 | 2 016.2 |
Reclassification | 161.4 | -125.9 | - | 35.5 | |
Disposals | -708.3 | -17.9 | - | -726.2 | |
Currency translation effects | -1 892.5 | -762.1 | -11.4 | -2 666.0 | |
Cost as at 31 December 2024 | 17 101.3 | 7 445.6 | 114.1 | 24 661.0 | |
Depreciation and impairment as at 1 January 2024 | -7 404.7 | -208.3 | -37.3 | -7 650.3 | |
Depreciation | -1 868.7 | -0.0 | -24.1 | -1 892.9 | |
Impairment reversal / (loss) | 17 | -12.3 | 135.2 | - | 122.8 |
Disposals | 623.0 | - | - | 623.0 | |
Currency translation effects | 834.1 | 34.2 | 5.2 | 873.5 | |
Depreciation and impairment as at 31 December 2024 | -7 828.7 | -38.9 | -56.2 | -7 923.9 | |
Net book value as at 31 December 2024 | 9 272.5 | 7 406.7 | 57.9 | 16 737.1 |
USD million | Note | Wells and production facilities | Facilities under construction | Other property, plant and equipment | Total | Cost as at 1 January 2025 | 17 101.3 | 7 445.6 | 114.1 | 24 661.0 |
Additions | 1 513.0 | 1 140.6 | 22.5 | 2 676.0 | ||||||
Estimate change asset retirement cost | 27 | -14.1 | - | - | -14.1 | |||||
Additions through business combinations | 3 | -23.5 | 155.6 | - | 132.1 | |||||
Reclassification | 8 937.0 | -8 706.4 | 0.2 | 230.7 | ||||||
Disposals | -0.0 | - | -4.4 | -4.4 | ||||||
Currency translation effects | 2 316.1 | 864.6 | 15.2 | 3 196.0 | ||||||
Cost as at 31 December 2025 | 29 829.7 | 900.0 | 147.6 | 30 877.3 | ||||||
Depreciation and impairment as at 1 January 2025 | -7 828.7 | -38.9 | -56.2 | -7 923.9 | ||||||
Depreciation | -2 625.0 | - | -29.3 | -2 654.2 | ||||||
Impairment reversal / (loss) | 17 | 695.0 | 44.0 | - | 739.0 | |||||
Disposals | - | - | 3.4 | 3.4 | ||||||
Currency translation effects | -1 052.9 | -5.0 | -7.9 | -1 065.8 | ||||||
Depreciation and impairment as at 31 December 2025 | -10 811.6 | 0.0 | -89.9 | -10 901.5 | ||||||
Net book value as at 31 December 2025 | 19 018.1 | 900.0 | 57.6 | 19 975.8 |
Capitalised interests for facilities under construction were USD 218 million in 2025 and USD 358 million in 2024.
The applied rate for capitalisation of interest was 6.45% in 2025 and 7.21% in 2024.
Note 16 Right of use assets
USD million | Note | Offices | Rigs, helicopters and supply vessels | Warehouse | Total |
Cost as at 1 January 2024 | 64.0 | 125.5 | 14.5 | 204.1 | |
Additions | 31 | 13.5 | 164.0 | 0.8 | 178.3 |
Additions through business combinations | 3 | 3.4 | 1.6 | 5.6 | 10.5 |
Reclassification | -0.5 | -27.6 | -0.9 | -28.9 | |
Disposals | -1.0 | - | - | -1.0 | |
Currency translation effects | -5.9 | -16.1 | -1.4 | -23.4 | |
Cost as at 31 December 2024 | 73.5 | 247.4 | 18.7 | 339.6 | |
Depreciation and impairment as at 1 January 2024 | -21.6 | -98.3 | -10.3 | -130.3 | |
Depreciation | -6.3 | -12.5 | -3.3 | -22.1 | |
Currency translation effects | 1.9 | 8.0 | 0.9 | 10.8 | |
Depreciation and impairment as at 31 December 2024 | -26.0 | -102.8 | -12.7 | -141.5 | |
Net book value as at 31 December 2024 | 47.5 | 144.7 | 6.0 | 198.1 |
USD million | Note | Offices | Rigs, helicopters and supply vessels | Warehouse | Total | Cost as at 1 January 2025 | 73.5 | 247.4 | 18.7 | 339.6 |
Additions | 31 | 2.1 | 143.8 | 0.0 | 145.9 | |||||
Reclassification | -0.0 | -82.5 | -0.1 | -82.6 | ||||||
Currency translation effects | 9.6 | 41.1 | 3.0 | 53.8 | ||||||
Cost as at 31 December 2025 | 85.3 | 350.0 | 21.6 | 456.9 | ||||||
Depreciation and impairment as at 1 January 2025 | -26.0 | -102.8 | -12.7 | -141.5 | ||||||
Depreciation | -7.3 | -46.7 | -1.9 | -55.9 | ||||||
Currency translation effects | -3.9 | -13.1 | -2.3 | -19.3 | ||||||
Depreciation and impairment as at 31 December 2025 | -37.2 | -162.9 | -16.9 | -216.9 | ||||||
Net book value as at 31 December 2025 | 48.1 | 187.1 | 4.7 | 240.1 |
See more details of the lease agreements in note 31. V\u00e5r Energi has committed to rent new offices in Stavanger from 2029. In addition, V\u00e5r Energi has signed a new helicopter agreement with start-up mid 2026. These leases has not commenced yet, and is included under commitments in note 30.
Note 31 Lease agreements
V\u00e5r Energi has entered into lease agreements for a drilling rig, supply vessels, and warehouses supporting operation at Balder, Gj\u00f8a and Goliat, where the most significant lease is the rig COSL Prospector operating in the Barents Sea and COSL Pioneer operating in the North Sea. The group also has leases for offices in Sandnes, Flor\u00f8, Oslo and Hammerfest, with the most significant contract being the main office building in Vestre Svanholmen 1, Sandnes.
New leases during 2025 consists of one new rig lease, COSL Pioneer, parking spaces in Stavanger, standby vessel in the Balder area, and inclusion of 6 additional months of the optional period for the rig COSL Prospector. See note 16 for the Right of use assets.
Short-term leases and leases of low value is not classified as lease accounting and is therefore booked directly to the profit/loss. The value of these leases is not significant.
USD million | Note | 2025 | 2024 |
Opening Balance lease debt | 211.9 | 116.9 | |
New lease debt in period | 16 | 145.9 | 178.3 |
Additions through business combinations | 3 | - | 10.5 |
Payments of lease debt | -125.6 | -83.3 | |
Lease debt derecognized in period | - | 1.0 | |
Interest expense on lease debt | 12 | 15.2 | 5.4 |
Currency exchange differences | 0.6 | -17.0 | |
Total lease debt | 247.9 | 211.9 | |
Breakdown of the lease debt to short-term and long-term liabilities | 31 Dec 2025 | 31 Dec 2024 | |
Short-term | 133.3 | 70.4 | |
Long-term | 114.6 | 141.5 | |
Total lease debt | 247.9 | 211.9 |
Lease debt split by activities | 31 Dec 2025 | 31 Dec 2024 |
Offices | 58.0 | 55.7 |
Rigs, helicopters and supply vessels | 184.8 | 149.9 |
Warehouse | 5.1 | 6.3 |
Total | 247.9 | 211.9 |
Nominal lease debt maturity breakdown | 31 Dec 2025 | 31 Dec 2024 |
Within one year | 143 | 77 |
Two to five years | 98 | 121 |
After five years | 37 | 36 |
Total | 277 | 234 |
Note 17 Impairment
Impairment tests for individual cash-generating units (CGUs) are conducted annually. Additionally, quarterly tests are performed when specific impairment triggers are identified. This ensures that any potential impairment is detected and addressed promptly. The\u00a0impairment testing covers both fixed assets and related intangible assets. This includes technical and ordinary goodwill, ensuring that all significant assets are evaluated for potential impairment.
Impairment testing of goodwill
The technical goodwill recognised in previous business combinations is allocated to each CGU for the purpose of impairment testing. Hence, technical goodwill is included in the impairment testing of the CGU, and the technical goodwill is written down before the asset. The carrying value of the CGU is the sum of tangible assets, intangible assets, technical goodwill and deferred taxes as of the assessment date. When deferred tax liabilities from the acquisitions decreases as a result of depreciation, more goodwill is exposed for impairment. This may lead to future impairment charges even though other assumptions remain stable as goodwill is not depreciated.
The ordinary goodwill is tested for impairment on an operating segment level. If the net recoverable amount calculated as total of NPV less Net book value (NBV) for the offshore asset portfolio exceeds the carrying value of ordinary goodwill, no impairment is recorded.
Impairment testing
Key assumptions applied for impairment testing purposes as of 31 December 2025 are based on V\u00e5r Energi\u2019s macroeconomic assumptions. Below is an overview of the key assumptions applied:
Prices
The oil and gas prices are based on the forward curve for the next three-year period and from the fourth year the oil and gas prices are based on the Company\u2019s long-term price assumptions. V\u00e5r Energi\u2019s long term oil price assumption is 79 USD/boe (real 2026) and long-term gas price assumption is \u20ac31/MWh (real 2026), nominal prices unchanged compared to the assumed prices per 31 December 2024.
The nominal oil prices (USD/boe) applied in the impairment tests are as follows:
Year | 31 Dec 2024 | 31 Dec 2025 |
2026 | 74.5 | 62.5 |
2027 | 78.5 | 70.0 |
2028 | 82.0 | 78.9 |
The nominal gas prices (USD/BOE) applied in the impairment tests are as follows:
Year | 31 Dec 2024 | 31 Dec 2025 |
2026 | 65.6 | 54.4 |
2027 | 59.1 | 55.4 |
2028 | 60.1 | 58.8 |
Oil and gas reserves
Future cash flows are calculated based on expected production profiles and estimated proven, probable and risked possible reserves.
Year | 31 Dec 2024 | 31 Dec 2025 |
2026 - 2029 | 482 | 527 |
2030 - 2034 | 311 | 377 |
2035 - 2039 | 160 | 194 |
2040 - 2060 | 132 | 230 |
Future expenditure
Future capex, opex and abandonment cost are calculated based on the expected production profiles and the best estimate of the related cost.
Note 17 Impairment continued
Discount rate
The discount rate is derived from the Company\u2019s weighted average cost of capital (WACC). The\u00a0capital structure considered in the WACC calculation is derived from the capital structures of an identified peer group and market participants with consideration given to optimal structures. The cost of equity is derived from the expected return from an investor of the Company. The cost of debt is based on the interest-bearing borrowings for a market participant specific to the assets acquired. The beta factors are evaluated annually based on publicly available market data about the identified peer group. The\u00a0post tax nominal discount rate used is 8% per 31\u00a0December 2025, consistent with the rate applied per 31 December 2024.
Currency rates
The currency rates assumed per 31 December 2025 are based on the forward curve for the next three-year period and from the fourth year the currency rates are based on the Company\u2019s long-term assumptions. V\u00e5r\u00a0Energi\u2019s long term currency rates are 10.0\u00a0NOK/USD and 11.0 NOK/EUR per 31\u00a0December 2025, compared to 9.5 NOK/USD and 10.6 NOK/EUR per 31\u00a0December 2024.
NOK/EUR | NOK/USD | |||
Year | 31 Dec 2024 | 31 Dec 2025 | 31 Dec 2024 | 31 Dec 2025 |
2026 | 11.5 | 11.8 | 10.5 | 10.1 |
2027 | 10.9 | 11.6 | 9.8 | 10.1 |
2028 | 10.6 | 11.2 | 9.5 | 10.0 |
2029 onwards | 10.6 | 11.0 | 9.5 | 10.0 |
Inflation
The inflation rate assumed per 31 December 2025 is 2.5% for 2026 with long-term inflation rates beyond 2026 of 2%. Assumptions per 31 December 2024 were 2% from 2026 and onwards.
Impairment charge/reversal
Impairment testing conducted for 2025 identified technical goodwill impairments in four CGUs: Njord area (USD 73 million), Gj\u00f8a area (USD 49 million), Snorre (USD 45 million), and Sn\u00f8hvit (USD 11 million). Additionally, an impairment reversal was recognized in the Balder area (USD -739 million). Exploration disposals during 2025 resulted in a related technical goodwill impairment of USD\u00a010\u00a0million. No impairment triggers were identified for ordinary goodwill.
The impairments recognized in the Njord, Gj\u00f8a\u00a0and Sn\u00f8hvit areas primarily reflect lower\u00a0short-term commodity prices. The\u00a0impairment for Snorre is attributable to a final redetermination, which reduced V\u00e5r\u00a0Energi\u2019s equity share in Snorre from 18.55%\u00a0to\u00a018.16%.
The impairment reversal for the Balder area is\u00a0mainly due to additional reserves from newly planned infill wells, revised production profiles, and updated transportation price assumptions. As of 31 December 2025, all historical impairments in the Balder area have\u00a0been fully\u00a0reversed.
Impairment allocated | ||||||
Cash generating unit (USD million) | Net carrying value | Recoverable amount | Impairment/ reversal (-) | Goodwill | PP&E | Deferred tax impact |
Balder Area | 1 686.9 | 1 894.8 | -739.0 | -739.0 | 576.5 | |
Njord | 596.8 | 592.1 | 73.4 | 73.4 | ||
Gj\u00f8a | 140.1 | 125.3 | 48.6 | 48.6 | ||
Snorre | 495.7 | 450.9 | 44.9 | 44.9 | ||
Sn\u00f8hvit | 651.4 | 654.2 | 11.2 | 11.2 | ||
Other | 10.4 | 10.4 | ||||
Total | -550.6 | 188.4 | -739.0 | 576.5 |
Note 17 Impairment continued
Sensitivity analysis
The table below shows how the impairment or reversal of impairment of assets and technical goodwill would be affected by changes in the various assumptions, given that the remaining assumptions are constant.
Change in impairment after | |||
Assumptions USD million | Change | Increase in assumption | Decrease in assumption |
Oil and gas prices short and long term | +/-25% | -64 | 3 730 |
Oil and gas prices forward period | +/-25% | -42 | 120 |
Production profile | +/- 5% | -59 | 172 |
Discount rate | +/- 1% point | 69 | -24 |
The sensitivities are created for illustration purposes, based on a simplified method and assumes no changes in other input factors. Significant reductions are likely to result in changes in business plans, cut-offs as well as other factors used when estimating an asset\u2019s recoverable amount. Changes in such input factors would likely significantly reduce the actual impairment amount compared to the illustrative sensitivity above. The impact of the sensitivities is mainly related to the Balder Area.
Climate related risks
The climate related risk assessment is generally described in note 35 Climate Risk. Financial reporting and impairment testing includes a\u00a0step up of CO2tax/fees from current levels to approximately NOK 2 371 per tonne in 2030 (real 2025). Scenarios from the International Energy Agency (IEA) have been included in a sensitivity test as presented to the right. The\u00a0price assumptions in those senarios have been provided by IEA at 2035 and 2050 in 2024 real terms. For the sensitivity calculation, a linear development between spot price at year end 2025 and IEA price in 2035, as well as between 2035 and 2050 have been applied. The\u00a0table below summarises how the impairment charge would increase (+) or decrease (-) using the oil and gas price assumptions in the following scenarios:
Oil USD/boe | Gas USD/mmbtu | |||
Scenario price ranges | 2035 | 2050 | 2035 | 2050 |
Net Zero | 33 | 25 | 4.2 | 4.0 |
Current Policies Scenario | 89 | 106 | 9.1 | 10.6 |
Stated policies | 80 | 76 | 6.5 | 8.4 |
Change in impairment | ||||
IEA Scenario (USD million) | Net zero | Current Policies Scenario | Stated policies | |
Balder area | 3 281 | |||
Ekofisk | 745 | |||
Snorre | 608 | -45 | 8 | |
Goliat | 511 | |||
Grane | 372 | |||
Sn\u00f8hvit | 353 | 110 | ||
Njord | 236 | -5 | 44 | |
Fram | 110 | |||
Other | 131 | -10 | 3 | |
6 347 | -60 | 165 |
2024 impairment testing
The impairment testing for 2024 identified goodwill impairment to three CGUs; Njord area (USD 87 million), Gj\u00f8a area (USD\u00a014\u00a0million) and Sn\u00f8hvit (USD 14 million) in addition to an impairment reversal to Balder area (USD -114 million). Exploration disposals during 2024 included related impairment of technical goodwill of USD 3 million. The Njord impairment was mainly related to significant reserve reduction for the Bauge field, whereas the impairment reversal for Balder was mainly due to updated production profiles.
The 2024 macro assumptions are shown in tables and text in this note.
Note 18 Non current receivables and other financial assets
USD million | Business Location | Ownership | 31 Dec 2025 | 31 Dec 2024 |
Norpipe Oil AS | Tananger, Norway | 6.52% | 0.2 | 0.1 |
Pro Barents AS | Hammerfest, Norway | 9.35% | 0.4 | - |
Tjeldbergodden Utvikling AS | Kj\u00f8rsvikbugen, Norway | 0.48% | - | 0.1 |
Ormen Lange Eiendom DA | Tananger, Norway | 6.34% | 0.5 | 0.5 |
Investment in shares | 1.1 | 0.7 | ||
Derivatives | 12.9 | 19.1 | ||
Other1 | 24.5 | 11.7 | ||
Total other non-current assets | 37.4 | 30.8 |
1Other consists of prepayments and other non-current financial items.
Note 19 Inventories
USD million | 31 Dec 2025 | 31 Dec 2024 |
Consumable spare parts and drilling stock - measured at cost | 302.7 | 221.9 |
Provisions for obsolete stock | -25.0 | -22.1 |
Physical oil inventory | 58.5 | 41.5 |
Total inventory | 336.2 | 241.4 |
Note 20 Trade receivables
USD million | Note | 31 Dec 2025 | 31 Dec 2024 |
Trade receivables - related parties | 32 | 456.5 | 448.9 |
Trade receivables - external parties | 171.4 | 181.7 | |
Trade receivables sold | -421.0 | -257.4 | |
Total trade receivables | 206.9 | 373.2 |
V\u00e5r Energi has Credit Discount Agreements with several banks. Under the arrangements the ownership, including credit risk, of invoices for oil and gas sales are transferred to the respective banks, and the receivables to which the payments relate are derecognised from V\u00e5r\u00a0Energi's balance sheet. Payments to the banks are made when V\u00e5r Energi receives payments from the customers.
Trade receivables are presented net of payments received from the banks for the sold invoices, as V\u00e5r Energi has retained the right to receive payments from the customers and obligation to pay these cash flows to the banks without material delay, but only to the extent V\u00e5r Energi collects the payments from the customers.
Note 21 Other current receivables and financial assets
USD million | Note | 31 Dec 2025 | 31 Dec 2024 |
Net underlift of hydrocarbons | 364.4 | 223.1 | |
Net receivables from joint operations | 113.2 | 121.1 | |
Prepaid expenses | 39.8 | 16.8 | |
Commodity derivatives - financial assets | 22 | - | 17.2 |
Other receivables | 3.8 | -4.8 | |
Total other current receivables and financial assets | 521.3 | 373.4 |
Note 22 Financial instruments
Capital management
For V\u00e5r Energi, capital includes equity attributable to the equity holders and current and non-current debt financing. The primary objective of the Company\u2019s capital management is to ensure that it maintains a solid balance sheet and investment grade credit rating to support its business and maximise shareholder value.
When evaluating the capital structure, all material elements of the balance sheet are included in the assessment. This includes goodwill, deferred taxes and asset retirement obligations.
The Company has a dividend policy of paying 25-30% of Cash Flow from Operations (CFFO) after tax over the cycle. The Board of Directors will evaluate the Company\u2019s performance and solidity, market outlook and business requirements when recommending or approving the dividend, including a satisfactory level of equity. The Company has used subordinated notes to strengthen the capital structure with non-dilutive form of capital and is having a long-term target of holding USD 1 billion of hybrid capital in the capital structure.
To maintain or adjust the capital structure, the Company may issue new or refinance existing debt using both bank loans or bonds, adjust the dividend payment to shareholders, return capital to shareholders, issue hybrid bonds or new shares or sell assets. In addition, the Company has entered into Receivable Purchase Agreements with banks covering crude oil and natural gas invoices for selected customers on a non-recourse basis to manage the Company\u2019s working capital position. The Company\u2019s capital management process, aims to ensure that it meets financial covenants attached to its interest-bearing loans and borrowings. Breaches in the financial covenants would permit the bank to immediately call such loans. There have been no breaches in the financial covenants of any interest-bearing loans and borrowings in the current or prior period.
The Company monitors the leverage ratio using net interest bearing debt (NIBD) divided by rolling 12 months earnings before interest, tax, depreciation, amortisation and exploration expenses (EBITDAX). Net interest-bearing debt is defined as interest-bearing loans and borrowings less cash and short-term deposits.
Please refer to note 25 for more details related to financial liabilities and borrowings.
Risk Management
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. V\u00e5r Energi is exposed to credit risk from its operating activities and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.
The Company primarily sells to investment grade customers and have established procedures to assess credit risk. Payment performance is closely monitored for both license partners and customers. Overall, the credit risk is considered to be low based on the financial strength of the counterparties and the procedures in place. At balance date the company has no expected credit losses.\u00a0\u00a0
Operational risks
The Board of Directors recognises the risks associated with the Company\u2019s operational assets. The regulatory framework on the NCS provides a sound framework for handling these risks, and the Company takes an active and responsible approach as a partner. Future production of oil and gas is dependent on the Company\u2019s ability to find, or acquire, and develop reserves.
Costs of development projects or exploration efforts are also uncertain. As a result of these risks, the Company may incur costs that could adversely affect the Company's financial position or its reputation as a player on the NCS. The Company intends to act as a sound, responsible and technically competent partner across the whole spectrum of activities in all its operations. V\u00e5r Energi works actively with our partners and has established mitigating actions to reduce the possibility of operational incidents occurring.
Commodity price risk
V\u00e5r Energi operates in the crude oil and natural gas market and fluctuations in hydrocarbon prices have a significant effect on the Company\u2019s revenues. Commodity price risk represent the Company\u2019s most important market risk. To manage this risk, V\u00e5r Energi protects cash flows from sale of crude oil and gas through entering into financial commodity price hedging instruments and cash flows from sale of natural gas through entering into fixed price gas sales contracts. The Company has established an oil and gas price hedging program for 2026 where up to 50% of the planned after-tax volumes for oil and can be hedged by acquiring monthly settled oil price put options, with the possbility to reduce premium costs by implementing three-way structures
Note 22 Financial instruments continued
where part of the upside price risk is sold by selling a call option and purchasing another call option at a higher strike. For up to 50% of the volumes eligible for its financial hedging mandate, the Company might also enter into financial Swaps and Collars. To align after-tax cash flows and adjust for different tax treatment of financial derivatives and the underlying oil production, approximately 28 per cent of the planned production volume to be covered is hedged. V\u00e5r Energi has elected to sell part of its gas production in 2026 on a fixed price/forward basis. As per 31 December 2025, V\u00e5r Energi has sold approximately 14% of the gas production in first, second and third quarter of 2026 at USD 75 per boe. In addition, V\u00e5r Energi has sold approximately 18% of its gas production in the fourth quarter of 2026 with year ahead indexation with a pricing period started 1 October 2025 and ends 30 September 2026.
Financial risks
The Company is exposed to market fluctuations in commodity prices, foreign exchange rates\u00a0and interest rates.
The main financial risks V\u00e5r Energi is exposed to are:
Fluctuation in foreign exchange rates due to currency mismatch between income and\u00a0cost\u00a0currencies, including tax payments
Fluctuation in interest rates leading to a fluctuation in finance costs
Funding and liquidity risk due to unavailability of funding, deposits or loss of\u00a0income
Credit risk of customers and other counterparties
Currency risk
V\u00e5r Energi is receiving proceeds in USD, EUR and GBP. The sale of crude oil is denominated in USD, whereas natural gas sales are mainly denominated in EUR with a minor part being denominated in GBP. Cash expenditures (OPEX, CAPEX, general and administrative expences and tax payments) are split between NOK, USD and EUR. Bonds and interest bearing loans are in USD and EUR. Currency risk is mainly linked to a change in the value of NOK vs USD and EUR. The main currency risk relates to debt denominated in\u00a0USD and EUR, but also exposure to\u00a0receivables and payables per year-end has been included in the below sensitivity tables.
The table below shows the Company's main exposure in USD as of 31 December 2025:
Exposure (USD million) | 31 Dec 2025 | 31 Dec 2024 |
Interest-bearing loans and bonds in USD | 4 000.0 | 4 470.0 |
Interest-bearing bonds in EUR | 1 905.4 | 649.7 |
Receivables due in USD | -354.8 | -386.4 |
Receivables due in EUR | -138.0 | -39.8 |
Payables due in USD | 18.6 | 35.8 |
Payables due in EUR | 6.8 | 0.4 |
Total | 5 438.0 | 4 729.7 |
The following table demonstrates the sensitivity to a reasonably possible change in the foreign exchange rate, with all other variables held constant, of the Company\u2019s profit before tax due to changes in the carrying value of monetary assets and liabilities at the reporting date.
Exposure (USD million) Increase/decrease in foreign exchange rate USD/NOK | Effect on profit before tax for the year ended 31 December 2025 | Effect on profit before tax for the year ended 31 December 2024 |
Increase/(Decrease) | Increase/(Decrease) | |
10% | -544 | -473 |
-10% | 544 | 473 |
Note 22 Financial instruments continued
Interest rate sensitivity
Interest rate risk arises from the effects fluctuations in underlying market rates may have on future cash flows. At balance date the company\u2019s working capital facility and liquidity facilities remain undrawn, as such, the main source of interest rate risk for V\u00e5r Energi is the floating interest rate payable under the Interest Rate Swap linked to the 5.5% May 2029 EUR 600 million senior notes issue and the borrowings under the Company's credit facilities. Changes to the interest rate affecting the valuation of the Interest Rate Swaps are treated as fair value changes. See note 25. Should the company chose to utilize the credit facilities, the exposure to fluctuating interest rates would increase in line with the drawn amount, impacting the cost of borrowing, and subsequently the company\u2019s profit before tax.
The following table demonstrates the sensitivity to a reasonable possible change in interest rates on the Company's profit before tax from the impact of changes in floating interest rate with all other variables held constant. 2025 upward and downward sensitivity has been set to 1%. In the current volatile economic environment reasonable possible changes could be significantly higher. A 2% sensitivity would double the effect and a 3% would triple the effect. At\u00a0balance date the company has limited exposure to fluctuation in interest rates that will affect the company\u2019s profit before tax. The credit facilities is undrawn, so the exposure at balance date is linked to the interest rate swap of the EUR\u00a0600 million senior notes only.
Exposure (USD million)Increase/decrease in interest rate | Effect on profit before tax for the year ended 31 December 2024 | Effect on profit before tax for the year ended 31 December 2023 |
Increase/(Decrease) | Increase/(Decrease) | |
1.00% | -7 | -26 |
-1.00% | 7 | 26 |
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. V\u00e5r Energi is exposed to credit risk from its operating activities and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. In 2025 V\u00e5r Energi sold the crude oil to Eni trading entities and natural gas primarily to Eni trading entities and other major international oil and gas players. We consider the risk related to Eni to be negligible. The Company only uses investment grade and highly reputable banks as counterparties. Based on this, credit risk is considered limited.
The Company primarily sells to investment grade customers and have established procedures to assess credit risk. Payment performance is closely monitored for both licence partners and customers. Overall, the credit risk is considered to be low based on the financial strenght of the counterparties and the procedures in place.
Note 22 Financial instruments continued
Liquidity risk
The Company\u2019s future capital requirements depend on many factors, and the Company may need additional funds to fulfil its commitments and further develop exploration and development programs to support the strategic direction of the Company. Liquidity risk is the risk that the Company will not be able to meet the obligations of financial liabilities when they become due.
Risk levels are analysed by at least quarterly updates of cash flow projections for the strategic plan period and comparing with available liquidity during the period. Additional updates will be made if\u00a0significant macroeconomic changes occur.
The Company\u2019s objective is to maintain a balance between continuity of funding and flexibility through the use of credit facilities, bank loans and debt capital markets.
See note 25 for an overview of available credit facilities and bonds issued.
The table to the right shows the payment structure for the Company's financial commitments, based\u00a0on\u00a0undiscounted contractual payments:
Year ended 31 December 2025 | On demand | < 1 year | 1 - 2 years | 2 - 5 years | > 5 years | Total |
USD million | ||||||
Interest-bearing loans | - | - | - | - | - | - |
Bond USD Senior Notes | - | 272.8 | 760.3 | 2 283.9 | 2 129.4 | 5 446.4 |
Bond EUR Senior Notes | - | 84.3 | 84.3 | 919.1 | 45.5 | 1 133.3 |
Subord. EUR Fixed Rate Sec. | - | - | - | - | 881.3 | 881.3 |
Accounts Payable | - | 478.0 | - | - | - | 478.0 |
Lease liabilities | - | 142.8 | - | 97.8 | 36.8 | 277.4 |
Sum non-derivative fin. liab. | 978.0 | 844.6 | 3 300.8 | 3 093.0 | 8 216.4 | |
Interest Rate Swap EUR (inflow) | - | -38.8 | -38.8 | -77.6 | - | -155.1 |
Interest Rate Swap EUR (outflow) | - | 32.6 | 32.6 | 48.9 | - | 114.2 |
Sum derivative fin. liab. | -6.2 | -6.2 | -28.6 | - | -40.9 | |
Total | - | 971.9 | 838.5 | 3 272.2 | 3 093.0 | 8 175.5 |
Year ended 31 December 2024 | On demand | < 1 year | 1 - 2 years | 2 - 5 years | > 5 years | Total |
USD million | ||||||
Interest-bearing loans | - | - | - | 1 970.0 | - | 1 970.0 |
Bond USD Senior Notes | - | 180.0 | 180.0 | 1 865.0 | 1 240.0 | 3 465.0 |
Bond EUR Senior Notes | - | 34.3 | 34.3 | 726.2 | - | 794.8 |
Subord. EUR Fixed Rate Sec. | - | - | - | - | 779.2 | 779.2 |
Accounts Payable | - | 356.1 | - | - | - | 356.1 |
Lease liabilities | - | 77.1 | - | 121.4 | 35.9 | 234.4 |
Sum non-derivative fin. liab. | - | 647.5 | 214.3 | 4 682.6 | 2 055.1 | 7 599.4 |
Interest Rate Swap EUR (inflow) | - | -52.3 | -52.3 | -148.0 | - | -252.6 |
Interest Rate Swap EUR (outflow) | - | 53.6 | 53.6 | 134.0 | - | 241.2 |
Sum derivative fin. liab. | - | 1.3 | 1.3 | -14.0 | - | -11.5 |
Total | - | 648.7 | 215.5 | 4 668.6 | 2 055.1 | 7 588.0 |
Note 22 Financial instruments continued
Categories of financial assets and liabilities
USD million2025 | Note | Financial assets/ liabilities at fair value through profit and loss | Cash, cash equivalents and receivables, payables | Financial liabilities measured at amortised cost | Cash flow hedge fair value through OCI | Total |
Assets | ||||||
Trade receivable | 20 | - | 206.9 | - | - | 206.9 |
Investment in shares | 18 | 1.1 | - | - | - | 1.1 |
Cash and cash equivalents | 23 | - | 699.9 | - | - | 699.9 |
Other short term receivables | 21 | - | 117.0 | - | - | 117.0 |
Total financial assets | 1.1 | 1 023.8 | - | - | 1 024.9 | |
Liabilities | ||||||
Accounts payable | - | 478.0 | - | - | 478.0 | |
Net payables to joint operations | 29 | - | 415.6 | - | - | 415.6 |
Employee payables and accrued public charges | 29 | - | 49.6 | - | - | 49.6 |
Other payables | 29 | - | 12.0 | - | - | 12.0 |
Bond USD Senior Notes | 25 | - | - | 4 000.0 | - | 4 000.0 |
Bond EUR Senior Notes1 | 25 | - | - | 1 894.4 | - | 1 894.4 |
Subord. EUR Fixed Rate Sec. | 25 | - | - | 11.0 | - | 11.0 |
Prepaid loan and bond expenses | 25 | - | - | -63.1 | - | -63.1 |
Accrued interests | 25 | - | - | 99.6 | - | 99.6 |
Total financial liabilities | - | 955.2 | 5 942.0 | - | 6 897.1 |
1Adjusted for the fair value movement due to interest swaps/interest rate risk hedging
Note 22 Financial instruments continued
USD million2024 | Note | Financial assets/ liabilities at fair value through profit and loss | Cash, cash equivalents and receivables, payables | Financial liabilities measured at amortised cost | Cash flow hedge fair value through OCI | Total |
Assets | ||||||
Trade receivable | 20 | - | 373.2 | - | - | 373.2 |
Investment in shares | 18 | 0.7 | - | - | - | 0.7 |
Cash and cash equivalents | 23 | - | 278.9 | - | - | 278.9 |
Oil put options asset | 21 | - | - | - | 17.2 | 17.2 |
Other short term receivables | 21 | - | 116.3 | - | - | 116.3 |
Total financial assets | 0.7 | 768.4 | - | 17.2 | 786.3 | |
Liabilities | ||||||
Accounts payable | - | 356.1 | - | - | 356.1 | |
Net payables to joint operations | 29 | - | 365.5 | - | - | 365.5 |
Employee payables and accrued public charges | 29 | - | 47.5 | - | - | 47.5 |
Other payables | 29 | - | 21.4 | - | - | 21.4 |
Deferred payment for option premiums | 29 | - | - | 31.9 | - | 31.9 |
Bond USD Senior Notes | 25 | - | - | 2 500.0 | - | 2 500.0 |
Bond EUR Senior Notes2 | 25 | - | - | 640.7 | - | 640.7 |
Subord. EUR Fixed Rate Sec. | 25 | - | - | 9.0 | - | 9.0 |
RCF Working capital facility | 25 | - | - | 1 475.0 | - | 1 475.0 |
RCF Liquidity facility | 25 | - | - | 495.0 | - | 495.0 |
Prepaid loan and bond expenses | 25 | - | - | -37.5 | - | -37.5 |
Accrued interests | 25 | - | - | 54.7 | - | 54.7 |
Total financial liabilities | - | 790.5 | 5 168.8 | - | 5 959.3 | |
2Adjusted for the fair value movement due to interest swaps/interest rate risk hedging |
Note 22 Financial instruments continued
Fair Value
Management assessed that the fair values of cash and short-term deposits, trade receivables, trade payables, bank overdrafts, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. Derivative assets and liabilities are, as described above, measured at fair value. And they have been determined to constitute level 2 fair value measurements. Investment in shares (in the fair value through profit or loss category) are measured at fair values using level 3 fair value estimates. See below discussion related to fair value hierarchy.
Carrying amounts of long term floating rate loans are assumed to approximate fair value due to short term interest rate periods. See below table for a comparison of carrying amounts of bonds measured at amortised cost with the fair value based on trading values:
USD million | Note | Financial liabilities measured at amortised cost | Fair value based on trading at Year End1 |
Bond USD & EUR Senior Notes | 25 | 5 894.4 | 6 218.0 |
Prepaid expenses bond | 25 | -55.6 | - |
Total | 5 838.8 | 6 218.0 |
1Year End meaning closest to 31.12.2025
Derivative financial instruments
The Company uses derivative financial instruments, such as Brent crude put options to hedge its commodity price risks.
As of 31 December 2025, the Company had the following volumes of Brent crude oil put options in place and with the following strike prices:
Hedging instruments | Volume (no of put options outstanding at balance sheet date) in thousands (BOE) | Excercise price (USD per BOE) |
Brent crude oil put options 31.12.2025, exercisable in 2026 | - | - |
Hedging instruments | Volume (no of put options outstanding at balance sheet date) in thousands (MWH) | Excercise price (EUR per MWH) |
Gas TTF long put options 31.12.2025, exercisable in 2026 | - | - |
Gas TTF short call options 31.12.2025, exercisable in 2026 | - | - |
Note 22 Financial instruments continued
Commodity derivatives - financial assets
USD million | Note | 2025 | 2024 |
The beginning of the period | 17.2 | 11.0 | |
Additions through business combinations | - | 25.2 | |
New derivatives | - | 31.9 | |
Realised hedges exercised | 5 | - | -9.2 |
Change in fair value realised hedges | -17.2 | -21.5 | |
Change in fair value unrealised hedges | - | -20.2 | |
The end of the period | - | 17.2 |
As of 31 December 2025, the fair value of outstanding commodity derivatives amounted to USD 0.0 million. Unrealised gains and losses are recognised in OCI. Note that the cost price (time value agreed at the inception of the contracts) for the options is paid at the time of realisation (time of exercise or expiration) and that this deferred payment is presented as current liabilities in the balance sheet, see table to the right.
Commodity derivatives - financial liabilities
USD million | Note | 2025 | 2024 |
The beginning of the period | -0.1 | - | |
Additions through business combinations | - | -8.0 | |
New derivatives | - | - | |
Realised hedges exercised | 5 | - | 1.4 |
Change in fair value realised hedges | 0.1 | 3.6 | |
Change in fair value unrealised hedges | - | 2.9 | |
The end of the period | - | -0.1 |
As of 31 December 2025, the fair value of outstanding commodity derivatives liabilities are USD 0.0 million. Unrealised gains and losses are recognised in OCI. \u00a0
Brent crude put options \u2013 deferred premiums
USD million | Note | 2025 | 2024 |
The beginning of the period | -31.9 | -29.8 | |
Additions through business combinations | - | -2.6 | |
Settlement | 6 | 31.9 | 32.5 |
New Brent crude put options | - | -31.9 | |
FX-effect | - | -0.1 | |
The end of the period | - | -31.9 |
Note 22 Financial instruments continued
There are no outstanding put option contracts at 31 December 2025. The full intrinsic value (\u201cin the money value\u201d) of the options at the time of expiry, if any, is presented in petroleum revenues. In 2025, no gain has been recognised. In 2024 a gain of USD 7 794 thousand was recognised as a result of gas put options herited from the Neptune transaction. The\u00a0premiums paid for the put options was USD 31.9 million in 2025 and USD 32.5 million in 2024 and have been accounted for as cost of hedging and recycled from OCI to the profit or loss in the period in which the hedged revenues were realised, and presented as\u00a0production costs.
Change in Hedge Reserve
USD million | Note | 2025 | 2024 |
The beginning of the period | 14.8 | 18.8 | |
Additions through business combinations | - | -14.6 | |
Realised hedges exercised | 5 | - | 7.8 |
Realised cost of hedge expired options | -14.8 | -14.5 | |
Hedge ineffectiveness recorded in net financial income/expense | 12 | - | -0.0 |
Change in fair value unrealised hedges | - | 17.3 | |
The end of the period | - | 14.8 |
As of 31 December 2025, after tax balance is USD 0.0 million.
Note 22 Financial instruments continued
Reconciliation of liabilities arising from\u00a0financing activities
The table below shows a reconciliation between the opening and the closing balances in the statement of financial position for liabilities arising from financing activities.
Non-cash changes | ||||||
USD million | 31 Dec 2024 | Cash flows | Amortisation/Accretion/Accruals | Currency | Fair Value Adj. | 31 Dec 2025 |
Long-term interest-bearing debt | 1 970.0 | -1 984.1 | - | 14.1 | - | - |
Short-term interest-bearing debt | - | - | - | - | - | - |
Bond USD Senior Notes | 2 500.0 | 1 500.0 | - | - | - | 4 000.0 |
Bond EUR Senior Notes | 640.7 | 1 088.6 | - | 168.1 | -2.9 | 1 894.4 |
Subord. EUR Fixed Rate Sec. (23/83) | 9.0 | - | 0.8 | 1.2 | - | 11.0 |
Prepaid loan expenses | -37.5 | -43.4 | 18.9 | -1.0 | - | -63.1 |
Accrued interests | 54.7 | -54.7 | 99.7 | - | - | 99.6 |
Totals | 5 136.9 | 506.3 | 119.3 | 182.4 | -2.9 | 5 942.0 |
Non-cash changes | ||||||
USD million | 31 Dec 2023 | Cash flows | Amortisation/Accretion/Accruals | Currency | Fair Value Adj. | 31 Dec 2024 |
Long-term interest-bearing debt | - | 1 970.0 | - | - | - | 1 970.0 |
Short-term interest-bearing debt | - | - | - | - | - | - |
Bond USD Senior Notes | 2 500.0 | - | - | - | - | 2 500.0 |
Bond EUR Senior Notes | 682.9 | - | - | -39.7 | -2.6 | 640.7 |
Subord. EUR Fixed Rate Sec. | 8.9 | - | 0.7 | -0.6 | - | 9.0 |
Prepaid loan expenses | -45.3 | -2.2 | 8.8 | 1.2 | - | -37.5 |
Accrued interests | 54.9 | -54.9 | 54.7 | - | - | 54.7 |
Totals | 3 201.5 | 1 912.8 | 64.2 | -39.0 | -2.6 | 5 136.9 |
Note 22 Financial instruments continued
Fair value hierarchy
The fair value of the financial instruments is included at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The\u00a0following methods and assumptions were\u00a0used to\u00a0estimate the fair values:
The Company enters into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. Derivatives measured using valuation techniques with market observable inputs are mainly commodity option contracts. The most frequently applied valuation techniques include forward pricing and swap models that use present value calculations. The models incorporate various inputs including the credit quality of counterparties and forward rate curves of the underlying commodity. As\u00a0at 31\u00a0December 2025, the marked-to-market value of derivative asset positions is net of a credit valuation adjustment attributable to derivative counterparty default risk. The changes in counterparty credit risk had no material effect on financial instruments recognised at fair value.
All assets and liabilities, for which fair value is measured or disclosed in the financial statements, are categorised within the fair value hierarchy, described as follows, based on the\u00a0lowest-level input that is significant to the fair value measurement as a whole:
Level 1 input in the form of listed (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 \u2013 input other than listed prices of assets and liabilities included in Level 1 that is observable for assets or liabilities, either directly (i.e. as prices) or indirectly (i.e.\u00a0derived from prices).
Level 3 \u2013 input for assets or liabilities for which there is no observable market data (non-observable input).
Capital management
For V\u00e5r Energi, capital includes equity attributable to the equity holders and current and non-current debt financing. The primary objective of the Company\u2019s capital management is to ensure that it maintains a solid balance sheet and investment grade credit rating to support its business and maximise shareholder value.
When evaluating the capital structure, all material elements of the balance sheet are included in the assessment. This includes goodwill, deferred taxes and asset retirement obligations.
The Company has a dividend policy of paying 25-30% of Cash Flow from Operations (CFFO) after tax over the cycle. The Board of Directors will evaluate the Company\u2019s performance and solidity, market outlook and business requirements when recommending or approving the dividend, including a satisfactory level of equity. The Company has used subordinated notes to strengthen the capital structure with non-dilutive form of capital and is having a long-term target of holding USD 1 billion of hybrid capital in the capital structure.
To maintain or adjust the capital structure, the Company may issue new or refinance existing debt using both bank loans or bonds, adjust the dividend payment to shareholders, return capital to shareholders, issue hybrid bonds or new shares or sell assets. In addition, the Company has entered into Receivable Purchase Agreements with banks covering crude oil and natural gas invoices for selected customers on a non-recourse basis to manage the Company\u2019s working capital position. The Company\u2019s capital management process, aims to ensure that it meets financial covenants attached to its interest-bearing loans and borrowings. Breaches in the financial covenants would permit the bank to immediately call such loans. There have been no breaches in the financial covenants of any interest-bearing loans and borrowings in the current or prior period.
The Company monitors the leverage ratio using net interest bearing debt (NIBD) divided by rolling 12 months earnings before interest, tax, depreciation, amortisation and exploration expenses (EBITDAX). Net interest-bearing debt is defined as interest-bearing loans and borrowings less cash and short-term deposits.
Please refer to note 25 for more details related to financial liabilities and borrowings.
Risk Management
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. V\u00e5r Energi is exposed to credit risk from its operating activities and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.
The Company primarily sells to investment grade customers and have established procedures to assess credit risk. Payment performance is closely monitored for both license partners and customers. Overall, the credit risk is considered to be low based on the financial strength of the counterparties and the procedures in place. At balance date the company has no expected credit losses.\u00a0\u00a0
Operational risks
The Board of Directors recognises the risks associated with the Company\u2019s operational assets. The regulatory framework on the NCS provides a sound framework for handling these risks, and the Company takes an active and responsible approach as a partner. Future production of oil and gas is dependent on the Company\u2019s ability to find, or acquire, and develop reserves.
Costs of development projects or exploration efforts are also uncertain. As a result of these risks, the Company may incur costs that could adversely affect the Company's financial position or its reputation as a player on the NCS. The Company intends to act as a sound, responsible and technically competent partner across the whole spectrum of activities in all its operations. V\u00e5r Energi works actively with our partners and has established mitigating actions to reduce the possibility of operational incidents occurring.
Commodity price risk
V\u00e5r Energi operates in the crude oil and natural gas market and fluctuations in hydrocarbon prices have a significant effect on the Company\u2019s revenues. Commodity price risk represent the Company\u2019s most important market risk. To manage this risk, V\u00e5r Energi protects cash flows from sale of crude oil and gas through entering into financial commodity price hedging instruments and cash flows from sale of natural gas through entering into fixed price gas sales contracts. The Company has established an oil and gas price hedging program for 2026 where up to 50% of the planned after-tax volumes for oil and can be hedged by acquiring monthly settled oil price put options, with the possbility to reduce premium costs by implementing three-way structures
Note 22 Financial instruments continued
where part of the upside price risk is sold by selling a call option and purchasing another call option at a higher strike. For up to 50% of the volumes eligible for its financial hedging mandate, the Company might also enter into financial Swaps and Collars. To align after-tax cash flows and adjust for different tax treatment of financial derivatives and the underlying oil production, approximately 28 per cent of the planned production volume to be covered is hedged. V\u00e5r Energi has elected to sell part of its gas production in 2026 on a fixed price/forward basis. As per 31 December 2025, V\u00e5r Energi has sold approximately 14% of the gas production in first, second and third quarter of 2026 at USD 75 per boe. In addition, V\u00e5r Energi has sold approximately 18% of its gas production in the fourth quarter of 2026 with year ahead indexation with a pricing period started 1 October 2025 and ends 30 September 2026.
Financial risks
The Company is exposed to market fluctuations in commodity prices, foreign exchange rates\u00a0and interest rates.
The main financial risks V\u00e5r Energi is exposed to are:
Fluctuation in foreign exchange rates due to currency mismatch between income and\u00a0cost\u00a0currencies, including tax payments
Fluctuation in interest rates leading to a fluctuation in finance costs
Funding and liquidity risk due to unavailability of funding, deposits or loss of\u00a0income
Credit risk of customers and other counterparties
Currency risk
V\u00e5r Energi is receiving proceeds in USD, EUR and GBP. The sale of crude oil is denominated in USD, whereas natural gas sales are mainly denominated in EUR with a minor part being denominated in GBP. Cash expenditures (OPEX, CAPEX, general and administrative expences and tax payments) are split between NOK, USD and EUR. Bonds and interest bearing loans are in USD and EUR. Currency risk is mainly linked to a change in the value of NOK vs USD and EUR. The main currency risk relates to debt denominated in\u00a0USD and EUR, but also exposure to\u00a0receivables and payables per year-end has been included in the below sensitivity tables.
The table below shows the Company's main exposure in USD as of 31 December 2025:
Exposure (USD million) | 31 Dec 2025 | 31 Dec 2024 |
Interest-bearing loans and bonds in USD | 4 000.0 | 4 470.0 |
Interest-bearing bonds in EUR | 1 905.4 | 649.7 |
Receivables due in USD | -354.8 | -386.4 |
Receivables due in EUR | -138.0 | -39.8 |
Payables due in USD | 18.6 | 35.8 |
Payables due in EUR | 6.8 | 0.4 |
Total | 5 438.0 | 4 729.7 |
The following table demonstrates the sensitivity to a reasonably possible change in the foreign exchange rate, with all other variables held constant, of the Company\u2019s profit before tax due to changes in the carrying value of monetary assets and liabilities at the reporting date.
Exposure (USD million) Increase/decrease in foreign exchange rate USD/NOK | Effect on profit before tax for the year ended 31 December 2025 | Effect on profit before tax for the year ended 31 December 2024 |
Increase/(Decrease) | Increase/(Decrease) | |
10% | -544 | -473 |
-10% | 544 | 473 |
Note 22 Financial instruments continued
Interest rate sensitivity
Interest rate risk arises from the effects fluctuations in underlying market rates may have on future cash flows. At balance date the company\u2019s working capital facility and liquidity facilities remain undrawn, as such, the main source of interest rate risk for V\u00e5r Energi is the floating interest rate payable under the Interest Rate Swap linked to the 5.5% May 2029 EUR 600 million senior notes issue and the borrowings under the Company's credit facilities. Changes to the interest rate affecting the valuation of the Interest Rate Swaps are treated as fair value changes. See note 25. Should the company chose to utilize the credit facilities, the exposure to fluctuating interest rates would increase in line with the drawn amount, impacting the cost of borrowing, and subsequently the company\u2019s profit before tax.
The following table demonstrates the sensitivity to a reasonable possible change in interest rates on the Company's profit before tax from the impact of changes in floating interest rate with all other variables held constant. 2025 upward and downward sensitivity has been set to 1%. In the current volatile economic environment reasonable possible changes could be significantly higher. A 2% sensitivity would double the effect and a 3% would triple the effect. At\u00a0balance date the company has limited exposure to fluctuation in interest rates that will affect the company\u2019s profit before tax. The credit facilities is undrawn, so the exposure at balance date is linked to the interest rate swap of the EUR\u00a0600 million senior notes only.
Exposure (USD million)Increase/decrease in interest rate | Effect on profit before tax for the year ended 31 December 2024 | Effect on profit before tax for the year ended 31 December 2023 |
Increase/(Decrease) | Increase/(Decrease) | |
1.00% | -7 | -26 |
-1.00% | 7 | 26 |
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. V\u00e5r Energi is exposed to credit risk from its operating activities and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. In 2025 V\u00e5r Energi sold the crude oil to Eni trading entities and natural gas primarily to Eni trading entities and other major international oil and gas players. We consider the risk related to Eni to be negligible. The Company only uses investment grade and highly reputable banks as counterparties. Based on this, credit risk is considered limited.
The Company primarily sells to investment grade customers and have established procedures to assess credit risk. Payment performance is closely monitored for both licence partners and customers. Overall, the credit risk is considered to be low based on the financial strenght of the counterparties and the procedures in place.
Note 22 Financial instruments continued
Liquidity risk
The Company\u2019s future capital requirements depend on many factors, and the Company may need additional funds to fulfil its commitments and further develop exploration and development programs to support the strategic direction of the Company. Liquidity risk is the risk that the Company will not be able to meet the obligations of financial liabilities when they become due.
Risk levels are analysed by at least quarterly updates of cash flow projections for the strategic plan period and comparing with available liquidity during the period. Additional updates will be made if\u00a0significant macroeconomic changes occur.
The Company\u2019s objective is to maintain a balance between continuity of funding and flexibility through the use of credit facilities, bank loans and debt capital markets.
See note 25 for an overview of available credit facilities and bonds issued.
The table to the right shows the payment structure for the Company's financial commitments, based\u00a0on\u00a0undiscounted contractual payments:
Year ended 31 December 2025 | On demand | < 1 year | 1 - 2 years | 2 - 5 years | > 5 years | Total |
USD million | ||||||
Interest-bearing loans | - | - | - | - | - | - |
Bond USD Senior Notes | - | 272.8 | 760.3 | 2 283.9 | 2 129.4 | 5 446.4 |
Bond EUR Senior Notes | - | 84.3 | 84.3 | 919.1 | 45.5 | 1 133.3 |
Subord. EUR Fixed Rate Sec. | - | - | - | - | 881.3 | 881.3 |
Accounts Payable | - | 478.0 | - | - | - | 478.0 |
Lease liabilities | - | 142.8 | - | 97.8 | 36.8 | 277.4 |
Sum non-derivative fin. liab. | 978.0 | 844.6 | 3 300.8 | 3 093.0 | 8 216.4 | |
Interest Rate Swap EUR (inflow) | - | -38.8 | -38.8 | -77.6 | - | -155.1 |
Interest Rate Swap EUR (outflow) | - | 32.6 | 32.6 | 48.9 | - | 114.2 |
Sum derivative fin. liab. | -6.2 | -6.2 | -28.6 | - | -40.9 | |
Total | - | 971.9 | 838.5 | 3 272.2 | 3 093.0 | 8 175.5 |
Year ended 31 December 2024 | On demand | < 1 year | 1 - 2 years | 2 - 5 years | > 5 years | Total |
USD million | ||||||
Interest-bearing loans | - | - | - | 1 970.0 | - | 1 970.0 |
Bond USD Senior Notes | - | 180.0 | 180.0 | 1 865.0 | 1 240.0 | 3 465.0 |
Bond EUR Senior Notes | - | 34.3 | 34.3 | 726.2 | - | 794.8 |
Subord. EUR Fixed Rate Sec. | - | - | - | - | 779.2 | 779.2 |
Accounts Payable | - | 356.1 | - | - | - | 356.1 |
Lease liabilities | - | 77.1 | - | 121.4 | 35.9 | 234.4 |
Sum non-derivative fin. liab. | - | 647.5 | 214.3 | 4 682.6 | 2 055.1 | 7 599.4 |
Interest Rate Swap EUR (inflow) | - | -52.3 | -52.3 | -148.0 | - | -252.6 |
Interest Rate Swap EUR (outflow) | - | 53.6 | 53.6 | 134.0 | - | 241.2 |
Sum derivative fin. liab. | - | 1.3 | 1.3 | -14.0 | - | -11.5 |
Total | - | 648.7 | 215.5 | 4 668.6 | 2 055.1 | 7 588.0 |
Note 22 Financial instruments continued
Categories of financial assets and liabilities
USD million2025 | Note | Financial assets/ liabilities at fair value through profit and loss | Cash, cash equivalents and receivables, payables | Financial liabilities measured at amortised cost | Cash flow hedge fair value through OCI | Total |
Assets | ||||||
Trade receivable | 20 | - | 206.9 | - | - | 206.9 |
Investment in shares | 18 | 1.1 | - | - | - | 1.1 |
Cash and cash equivalents | 23 | - | 699.9 | - | - | 699.9 |
Other short term receivables | 21 | - | 117.0 | - | - | 117.0 |
Total financial assets | 1.1 | 1 023.8 | - | - | 1 024.9 | |
Liabilities | ||||||
Accounts payable | - | 478.0 | - | - | 478.0 | |
Net payables to joint operations | 29 | - | 415.6 | - | - | 415.6 |
Employee payables and accrued public charges | 29 | - | 49.6 | - | - | 49.6 |
Other payables | 29 | - | 12.0 | - | - | 12.0 |
Bond USD Senior Notes | 25 | - | - | 4 000.0 | - | 4 000.0 |
Bond EUR Senior Notes1 | 25 | - | - | 1 894.4 | - | 1 894.4 |
Subord. EUR Fixed Rate Sec. | 25 | - | - | 11.0 | - | 11.0 |
Prepaid loan and bond expenses | 25 | - | - | -63.1 | - | -63.1 |
Accrued interests | 25 | - | - | 99.6 | - | 99.6 |
Total financial liabilities | - | 955.2 | 5 942.0 | - | 6 897.1 |
1Adjusted for the fair value movement due to interest swaps/interest rate risk hedging
Note 22 Financial instruments continued
USD million2024 | Note | Financial assets/ liabilities at fair value through profit and loss | Cash, cash equivalents and receivables, payables | Financial liabilities measured at amortised cost | Cash flow hedge fair value through OCI | Total |
Assets | ||||||
Trade receivable | 20 | - | 373.2 | - | - | 373.2 |
Investment in shares | 18 | 0.7 | - | - | - | 0.7 |
Cash and cash equivalents | 23 | - | 278.9 | - | - | 278.9 |
Oil put options asset | 21 | - | - | - | 17.2 | 17.2 |
Other short term receivables | 21 | - | 116.3 | - | - | 116.3 |
Total financial assets | 0.7 | 768.4 | - | 17.2 | 786.3 | |
Liabilities | ||||||
Accounts payable | - | 356.1 | - | - | 356.1 | |
Net payables to joint operations | 29 | - | 365.5 | - | - | 365.5 |
Employee payables and accrued public charges | 29 | - | 47.5 | - | - | 47.5 |
Other payables | 29 | - | 21.4 | - | - | 21.4 |
Deferred payment for option premiums | 29 | - | - | 31.9 | - | 31.9 |
Bond USD Senior Notes | 25 | - | - | 2 500.0 | - | 2 500.0 |
Bond EUR Senior Notes2 | 25 | - | - | 640.7 | - | 640.7 |
Subord. EUR Fixed Rate Sec. | 25 | - | - | 9.0 | - | 9.0 |
RCF Working capital facility | 25 | - | - | 1 475.0 | - | 1 475.0 |
RCF Liquidity facility | 25 | - | - | 495.0 | - | 495.0 |
Prepaid loan and bond expenses | 25 | - | - | -37.5 | - | -37.5 |
Accrued interests | 25 | - | - | 54.7 | - | 54.7 |
Total financial liabilities | - | 790.5 | 5 168.8 | - | 5 959.3 | |
2Adjusted for the fair value movement due to interest swaps/interest rate risk hedging |
Note 22 Financial instruments continued
Fair Value
Management assessed that the fair values of cash and short-term deposits, trade receivables, trade payables, bank overdrafts, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. Derivative assets and liabilities are, as described above, measured at fair value. And they have been determined to constitute level 2 fair value measurements. Investment in shares (in the fair value through profit or loss category) are measured at fair values using level 3 fair value estimates. See below discussion related to fair value hierarchy.
Carrying amounts of long term floating rate loans are assumed to approximate fair value due to short term interest rate periods. See below table for a comparison of carrying amounts of bonds measured at amortised cost with the fair value based on trading values:
USD million | Note | Financial liabilities measured at amortised cost | Fair value based on trading at Year End1 |
Bond USD & EUR Senior Notes | 25 | 5 894.4 | 6 218.0 |
Prepaid expenses bond | 25 | -55.6 | - |
Total | 5 838.8 | 6 218.0 |
1Year End meaning closest to 31.12.2025
Derivative financial instruments
The Company uses derivative financial instruments, such as Brent crude put options to hedge its commodity price risks.
As of 31 December 2025, the Company had the following volumes of Brent crude oil put options in place and with the following strike prices:
Hedging instruments | Volume (no of put options outstanding at balance sheet date) in thousands (BOE) | Excercise price (USD per BOE) |
Brent crude oil put options 31.12.2025, exercisable in 2026 | - | - |
Hedging instruments | Volume (no of put options outstanding at balance sheet date) in thousands (MWH) | Excercise price (EUR per MWH) |
Gas TTF long put options 31.12.2025, exercisable in 2026 | - | - |
Gas TTF short call options 31.12.2025, exercisable in 2026 | - | - |
Note 22 Financial instruments continued
Commodity derivatives - financial assets
USD million | Note | 2025 | 2024 |
The beginning of the period | 17.2 | 11.0 | |
Additions through business combinations | - | 25.2 | |
New derivatives | - | 31.9 | |
Realised hedges exercised | 5 | - | -9.2 |
Change in fair value realised hedges | -17.2 | -21.5 | |
Change in fair value unrealised hedges | - | -20.2 | |
The end of the period | - | 17.2 |
As of 31 December 2025, the fair value of outstanding commodity derivatives amounted to USD 0.0 million. Unrealised gains and losses are recognised in OCI. Note that the cost price (time value agreed at the inception of the contracts) for the options is paid at the time of realisation (time of exercise or expiration) and that this deferred payment is presented as current liabilities in the balance sheet, see table to the right.
Commodity derivatives - financial liabilities
USD million | Note | 2025 | 2024 |
The beginning of the period | -0.1 | - | |
Additions through business combinations | - | -8.0 | |
New derivatives | - | - | |
Realised hedges exercised | 5 | - | 1.4 |
Change in fair value realised hedges | 0.1 | 3.6 | |
Change in fair value unrealised hedges | - | 2.9 | |
The end of the period | - | -0.1 |
As of 31 December 2025, the fair value of outstanding commodity derivatives liabilities are USD 0.0 million. Unrealised gains and losses are recognised in OCI. \u00a0
Brent crude put options \u2013 deferred premiums
USD million | Note | 2025 | 2024 |
The beginning of the period | -31.9 | -29.8 | |
Additions through business combinations | - | -2.6 | |
Settlement | 6 | 31.9 | 32.5 |
New Brent crude put options | - | -31.9 | |
FX-effect | - | -0.1 | |
The end of the period | - | -31.9 |
Note 22 Financial instruments continued
There are no outstanding put option contracts at 31 December 2025. The full intrinsic value (\u201cin the money value\u201d) of the options at the time of expiry, if any, is presented in petroleum revenues. In 2025, no gain has been recognised. In 2024 a gain of USD 7 794 thousand was recognised as a result of gas put options herited from the Neptune transaction. The\u00a0premiums paid for the put options was USD 31.9 million in 2025 and USD 32.5 million in 2024 and have been accounted for as cost of hedging and recycled from OCI to the profit or loss in the period in which the hedged revenues were realised, and presented as\u00a0production costs.
Change in Hedge Reserve
USD million | Note | 2025 | 2024 |
The beginning of the period | 14.8 | 18.8 | |
Additions through business combinations | - | -14.6 | |
Realised hedges exercised | 5 | - | 7.8 |
Realised cost of hedge expired options | -14.8 | -14.5 | |
Hedge ineffectiveness recorded in net financial income/expense | 12 | - | -0.0 |
Change in fair value unrealised hedges | - | 17.3 | |
The end of the period | - | 14.8 |
As of 31 December 2025, after tax balance is USD 0.0 million.
Note 22 Financial instruments continued
Reconciliation of liabilities arising from\u00a0financing activities
The table below shows a reconciliation between the opening and the closing balances in the statement of financial position for liabilities arising from financing activities.
Non-cash changes | ||||||
USD million | 31 Dec 2024 | Cash flows | Amortisation/Accretion/Accruals | Currency | Fair Value Adj. | 31 Dec 2025 |
Long-term interest-bearing debt | 1 970.0 | -1 984.1 | - | 14.1 | - | - |
Short-term interest-bearing debt | - | - | - | - | - | - |
Bond USD Senior Notes | 2 500.0 | 1 500.0 | - | - | - | 4 000.0 |
Bond EUR Senior Notes | 640.7 | 1 088.6 | - | 168.1 | -2.9 | 1 894.4 |
Subord. EUR Fixed Rate Sec. (23/83) | 9.0 | - | 0.8 | 1.2 | - | 11.0 |
Prepaid loan expenses | -37.5 | -43.4 | 18.9 | -1.0 | - | -63.1 |
Accrued interests | 54.7 | -54.7 | 99.7 | - | - | 99.6 |
Totals | 5 136.9 | 506.3 | 119.3 | 182.4 | -2.9 | 5 942.0 |
Non-cash changes | ||||||
USD million | 31 Dec 2023 | Cash flows | Amortisation/Accretion/Accruals | Currency | Fair Value Adj. | 31 Dec 2024 |
Long-term interest-bearing debt | - | 1 970.0 | - | - | - | 1 970.0 |
Short-term interest-bearing debt | - | - | - | - | - | - |
Bond USD Senior Notes | 2 500.0 | - | - | - | - | 2 500.0 |
Bond EUR Senior Notes | 682.9 | - | - | -39.7 | -2.6 | 640.7 |
Subord. EUR Fixed Rate Sec. | 8.9 | - | 0.7 | -0.6 | - | 9.0 |
Prepaid loan expenses | -45.3 | -2.2 | 8.8 | 1.2 | - | -37.5 |
Accrued interests | 54.9 | -54.9 | 54.7 | - | - | 54.7 |
Totals | 3 201.5 | 1 912.8 | 64.2 | -39.0 | -2.6 | 5 136.9 |
Note 22 Financial instruments continued
Fair value hierarchy
The fair value of the financial instruments is included at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The\u00a0following methods and assumptions were\u00a0used to\u00a0estimate the fair values:
The Company enters into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. Derivatives measured using valuation techniques with market observable inputs are mainly commodity option contracts. The most frequently applied valuation techniques include forward pricing and swap models that use present value calculations. The models incorporate various inputs including the credit quality of counterparties and forward rate curves of the underlying commodity. As\u00a0at 31\u00a0December 2025, the marked-to-market value of derivative asset positions is net of a credit valuation adjustment attributable to derivative counterparty default risk. The changes in counterparty credit risk had no material effect on financial instruments recognised at fair value.
All assets and liabilities, for which fair value is measured or disclosed in the financial statements, are categorised within the fair value hierarchy, described as follows, based on the\u00a0lowest-level input that is significant to the fair value measurement as a whole:
Level 1 input in the form of listed (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 \u2013 input other than listed prices of assets and liabilities included in Level 1 that is observable for assets or liabilities, either directly (i.e. as prices) or indirectly (i.e.\u00a0derived from prices).
Level 3 \u2013 input for assets or liabilities for which there is no observable market data (non-observable input).
Note 35 Climate risk
V\u00e5r Energi continually identifies and assesses the actual and potential impacts on sustainable development from the Company\u2019s business and activities. V\u00e5r Energi has through the DMA process under the ESRS reporting identified that the Company is mainly impacted by transitional risks.\u00a0\u00a0
Scenario analysis\u00a0
V\u00e5r Energi takes climate risks and opportunities into account when developing strategies and financial plans. The following information also answer the requirements under ESRS E1.IRO-1 and ESRS E1.SBM-3. V\u00e5r Energi has conducted a scenario analysis under the International Energy Agency (IEA) scenarios of future energy trends, in order to assess the impacts on the Company\u2019s business and financial performance.
The Global Energy and Climate Model (GEC) includes three scenarios; Current Policies Scenario (CPS), Stated Policies Scenario (STEPS) and Net Zero Emissions by 2050 Scenario (NZE).\u00a0The\u00a0defined time horizons are aligned with the timeline established by GEC.
Following assumptions were applied:
IEA defines the prices for 2035 and 2050 in 2024 real terms.
V\u00e5r Energi assumes a linear forecasted price development between 2025 to 2035, and\u00a0from\u00a02035 to 2050.
NGL prices are estimated to 70% of oil prices.
Foreign exchange rates are kept unchanged compared to base assumptions used for\u00a0impairment purposes.
The scenarios imply that no new oil and gas fields will be approved for development beyond\u00a0already committed projects as of year-end 2025.
The figure to the right illustrates the changes in the net present value (NPV) of V\u00e5r Energi's portfolio under the scenarios described in IEA's World Energy Outlook report (WEO) compared to the NPV of the portfolio valued at V\u00e5r Energi\u2019s latest economic assumptions. The latest WEO report, published in November 2025, further describes the scenarios mentioned above and is available at www.iea.org.\u00a0
Change in NPV of V\u00e5r Energi portfolio under IEA scenarios
V\u00e5r Energi\u2019s NPV under the Company\u2019s latest planning and budget assumptions is USD 100 billion.
As illustrated in the figure, the NPV of V\u00e5r Energi's portfolio is 10% higher under the IEA's CPS scenario compared with the Company's latest planning and budget assumptions, and 6% lower under the STEPS scenario.
The NZE models a collapse in commodity prices for crude oil and natural gas dependent on a\u00a0significant reduction in demand. This scenario entails ambitious policies and measures aimed at reducing energy demand through behavioural change. As indicated in the figure, the NPV of\u00a0V\u00e5r\u00a0Energi's portfolio is valued 50% lower than the base assumptions under this scenario.\u00a0
Note 35 Climate risk continued
IEA scenario price ranges | ||||
USD (real 2024 terms) | Oil USD/boe | Gas USD/mmbtu | ||
2035 | 2050 | 2035 | 2050 | |
CPS | 89.0 | 106.0 | 9.1 | 10.6 |
STEPS | 80.0 | 76.0 | 6.5 | 8.4 |
NZE | 33.0 | 25.0 | 4.2 | 4.0 |
Potential financial impacts\u00a0
The main potential climate risk related financial impacts identified by V\u00e5r Energi relates to market risk and regulatory risk. Market risk impacts, such as decrease in demand and prices related to fossil fuels, are described in the scenario analysis above. Regulatory risks are related to diminished exploration capabilities and end date of production for asset retirement purposes.
A scenario of shutdown of production of oil and gas from 2050 in order to reach the KonKraft strategy of near zero Scope 1 emissions by 2050 will have limited to no impact on the 2025 financials. This is due to limited assumed production and decommissioning cost after 2050.
If no exploration activity is allowed after 2025, an impairment of exploration bonus potential included in Other tangible assets of USD 56 million is estimated to be suffered.\u00a0
The Company\u2019s primary source of financing is through Senior Unsecured fixed-rate bonds. Consequently, the Company\u2019s exposure to interest rate risk is primarily associated with the potential re-financing of existing long-term debt obligations. Should the market begin to incorporate additional climate risk premiums into borrowing rates, the resulting increase in the Company\u2019s cost of debt will be directly proportional to the risk premium applied and the total amount subject to re-financing. For\u00a0detailed information regarding the interest rate sensitivities of financial liabilities that may be impacted by short-term interest rate fluctuations, please refer to Note 22.
Opportunities\u00a0
The main climate-related opportunities with potential financial impact identified by V\u00e5r\u00a0Energi are:\u00a0
Electrification of assets may reduce production costs.
Shift in supplier: V\u00e5r Energi's assets being preferred in terms of lower emissions per produced\u00a0boe, e.g. compared to non-NCS suppliers.\u00a0
Underinvestment in the oil and gas industry may lead to increased prices on the commodities,\u00a0in which may generate higher revenues.
Lower interest rates on loans due to lower emissions\u00a0compared to other non-NCS producers.
Availability of capital; loan issuers may prefer companies with lower emissions.
Investment in CCS may decrease carbon costs.
Currency risk
V\u00e5r Energi is receiving proceeds in USD, EUR and GBP. The sale of crude oil is denominated in USD, whereas natural gas sales are mainly denominated in EUR with a minor part being denominated in GBP. Cash expenditures (OPEX, CAPEX, general and administrative expences and tax payments) are split between NOK, USD and EUR. Bonds and interest bearing loans are in USD and EUR. Currency risk is mainly linked to a change in the value of NOK vs USD and EUR. The main currency risk relates to debt denominated in\u00a0USD and EUR, but also exposure to\u00a0receivables and payables per year-end has been included in the below sensitivity tables.
The table below shows the Company's main exposure in USD as of 31 December 2025:
Exposure (USD million) | 31 Dec 2025 | 31 Dec 2024 |
Interest-bearing loans and bonds in USD | 4 000.0 | 4 470.0 |
Interest-bearing bonds in EUR | 1 905.4 | 649.7 |
Receivables due in USD | -354.8 | -386.4 |
Receivables due in EUR | -138.0 | -39.8 |
Payables due in USD | 18.6 | 35.8 |
Payables due in EUR | 6.8 | 0.4 |
Total | 5 438.0 | 4 729.7 |
The following table demonstrates the sensitivity to a reasonably possible change in the foreign exchange rate, with all other variables held constant, of the Company\u2019s profit before tax due to changes in the carrying value of monetary assets and liabilities at the reporting date.
Exposure (USD million) Increase/decrease in foreign exchange rate USD/NOK | Effect on profit before tax for the year ended 31 December 2025 | Effect on profit before tax for the year ended 31 December 2024 |
Increase/(Decrease) | Increase/(Decrease) | |
10% | -544 | -473 |
-10% | 544 | 473 |
Note 22 Financial instruments continued
Interest rate sensitivity
Interest rate risk arises from the effects fluctuations in underlying market rates may have on future cash flows. At balance date the company\u2019s working capital facility and liquidity facilities remain undrawn, as such, the main source of interest rate risk for V\u00e5r Energi is the floating interest rate payable under the Interest Rate Swap linked to the 5.5% May 2029 EUR 600 million senior notes issue and the borrowings under the Company's credit facilities. Changes to the interest rate affecting the valuation of the Interest Rate Swaps are treated as fair value changes. See note 25. Should the company chose to utilize the credit facilities, the exposure to fluctuating interest rates would increase in line with the drawn amount, impacting the cost of borrowing, and subsequently the company\u2019s profit before tax.
The following table demonstrates the sensitivity to a reasonable possible change in interest rates on the Company's profit before tax from the impact of changes in floating interest rate with all other variables held constant. 2025 upward and downward sensitivity has been set to 1%. In the current volatile economic environment reasonable possible changes could be significantly higher. A 2% sensitivity would double the effect and a 3% would triple the effect. At\u00a0balance date the company has limited exposure to fluctuation in interest rates that will affect the company\u2019s profit before tax. The credit facilities is undrawn, so the exposure at balance date is linked to the interest rate swap of the EUR\u00a0600 million senior notes only.
Exposure (USD million)Increase/decrease in interest rate | Effect on profit before tax for the year ended 31 December 2024 | Effect on profit before tax for the year ended 31 December 2023 |
Increase/(Decrease) | Increase/(Decrease) | |
1.00% | -7 | -26 |
-1.00% | 7 | 26 |
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. V\u00e5r Energi is exposed to credit risk from its operating activities and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. In 2025 V\u00e5r Energi sold the crude oil to Eni trading entities and natural gas primarily to Eni trading entities and other major international oil and gas players. We consider the risk related to Eni to be negligible. The Company only uses investment grade and highly reputable banks as counterparties. Based on this, credit risk is considered limited.
The Company primarily sells to investment grade customers and have established procedures to assess credit risk. Payment performance is closely monitored for both licence partners and customers. Overall, the credit risk is considered to be low based on the financial strenght of the counterparties and the procedures in place.
Note 22 Financial instruments continued
Liquidity risk
The Company\u2019s future capital requirements depend on many factors, and the Company may need additional funds to fulfil its commitments and further develop exploration and development programs to support the strategic direction of the Company. Liquidity risk is the risk that the Company will not be able to meet the obligations of financial liabilities when they become due.
Risk levels are analysed by at least quarterly updates of cash flow projections for the strategic plan period and comparing with available liquidity during the period. Additional updates will be made if\u00a0significant macroeconomic changes occur.
The Company\u2019s objective is to maintain a balance between continuity of funding and flexibility through the use of credit facilities, bank loans and debt capital markets.
See note 25 for an overview of available credit facilities and bonds issued.
The table to the right shows the payment structure for the Company's financial commitments, based\u00a0on\u00a0undiscounted contractual payments:
Year ended 31 December 2025 | On demand | < 1 year | 1 - 2 years | 2 - 5 years | > 5 years | Total |
USD million | ||||||
Interest-bearing loans | - | - | - | - | - | - |
Bond USD Senior Notes | - | 272.8 | 760.3 | 2 283.9 | 2 129.4 | 5 446.4 |
Bond EUR Senior Notes | - | 84.3 | 84.3 | 919.1 | 45.5 | 1 133.3 |
Subord. EUR Fixed Rate Sec. | - | - | - | - | 881.3 | 881.3 |
Accounts Payable | - | 478.0 | - | - | - | 478.0 |
Lease liabilities | - | 142.8 | - | 97.8 | 36.8 | 277.4 |
Sum non-derivative fin. liab. | 978.0 | 844.6 | 3 300.8 | 3 093.0 | 8 216.4 | |
Interest Rate Swap EUR (inflow) | - | -38.8 | -38.8 | -77.6 | - | -155.1 |
Interest Rate Swap EUR (outflow) | - | 32.6 | 32.6 | 48.9 | - | 114.2 |
Sum derivative fin. liab. | -6.2 | -6.2 | -28.6 | - | -40.9 | |
Total | - | 971.9 | 838.5 | 3 272.2 | 3 093.0 | 8 175.5 |
Year ended 31 December 2024 | On demand | < 1 year | 1 - 2 years | 2 - 5 years | > 5 years | Total |
USD million | ||||||
Interest-bearing loans | - | - | - | 1 970.0 | - | 1 970.0 |
Bond USD Senior Notes | - | 180.0 | 180.0 | 1 865.0 | 1 240.0 | 3 465.0 |
Bond EUR Senior Notes | - | 34.3 | 34.3 | 726.2 | - | 794.8 |
Subord. EUR Fixed Rate Sec. | - | - | - | - | 779.2 | 779.2 |
Accounts Payable | - | 356.1 | - | - | - | 356.1 |
Lease liabilities | - | 77.1 | - | 121.4 | 35.9 | 234.4 |
Sum non-derivative fin. liab. | - | 647.5 | 214.3 | 4 682.6 | 2 055.1 | 7 599.4 |
Interest Rate Swap EUR (inflow) | - | -52.3 | -52.3 | -148.0 | - | -252.6 |
Interest Rate Swap EUR (outflow) | - | 53.6 | 53.6 | 134.0 | - | 241.2 |
Sum derivative fin. liab. | - | 1.3 | 1.3 | -14.0 | - | -11.5 |
Total | - | 648.7 | 215.5 | 4 668.6 | 2 055.1 | 7 588.0 |
Note 22 Financial instruments continued
Derivative financial instruments
The Company uses derivative financial instruments, such as Brent crude put options to hedge its commodity price risks.
As of 31 December 2025, the Company had the following volumes of Brent crude oil put options in place and with the following strike prices:
Hedging instruments | Volume (no of put options outstanding at balance sheet date) in thousands (BOE) | Excercise price (USD per BOE) |
Brent crude oil put options 31.12.2025, exercisable in 2026 | - | - |
Hedging instruments | Volume (no of put options outstanding at balance sheet date) in thousands (MWH) | Excercise price (EUR per MWH) |
Gas TTF long put options 31.12.2025, exercisable in 2026 | - | - |
Gas TTF short call options 31.12.2025, exercisable in 2026 | - | - |
Note 22 Financial instruments continued
Commodity derivatives - financial assets
USD million | Note | 2025 | 2024 |
The beginning of the period | 17.2 | 11.0 | |
Additions through business combinations | - | 25.2 | |
New derivatives | - | 31.9 | |
Realised hedges exercised | 5 | - | -9.2 |
Change in fair value realised hedges | -17.2 | -21.5 | |
Change in fair value unrealised hedges | - | -20.2 | |
The end of the period | - | 17.2 |
As of 31 December 2025, the fair value of outstanding commodity derivatives amounted to USD 0.0 million. Unrealised gains and losses are recognised in OCI. Note that the cost price (time value agreed at the inception of the contracts) for the options is paid at the time of realisation (time of exercise or expiration) and that this deferred payment is presented as current liabilities in the balance sheet, see table to the right.
Commodity derivatives - financial liabilities
USD million | Note | 2025 | 2024 |
The beginning of the period | -0.1 | - | |
Additions through business combinations | - | -8.0 | |
New derivatives | - | - | |
Realised hedges exercised | 5 | - | 1.4 |
Change in fair value realised hedges | 0.1 | 3.6 | |
Change in fair value unrealised hedges | - | 2.9 | |
The end of the period | - | -0.1 |
As of 31 December 2025, the fair value of outstanding commodity derivatives liabilities are USD 0.0 million. Unrealised gains and losses are recognised in OCI. \u00a0
Derivative financial instruments
The Company uses derivative financial instruments, such as Brent crude put options to hedge its commodity price risks.
As of 31 December 2025, the Company had the following volumes of Brent crude oil put options in place and with the following strike prices:
Hedging instruments | Volume (no of put options outstanding at balance sheet date) in thousands (BOE) | Excercise price (USD per BOE) |
Brent crude oil put options 31.12.2025, exercisable in 2026 | - | - |
Hedging instruments | Volume (no of put options outstanding at balance sheet date) in thousands (MWH) | Excercise price (EUR per MWH) |
Gas TTF long put options 31.12.2025, exercisable in 2026 | - | - |
Gas TTF short call options 31.12.2025, exercisable in 2026 | - | - |
Note 22 Financial instruments continued
Commodity derivatives - financial assets
USD million | Note | 2025 | 2024 |
The beginning of the period | 17.2 | 11.0 | |
Additions through business combinations | - | 25.2 | |
New derivatives | - | 31.9 | |
Realised hedges exercised | 5 | - | -9.2 |
Change in fair value realised hedges | -17.2 | -21.5 | |
Change in fair value unrealised hedges | - | -20.2 | |
The end of the period | - | 17.2 |
As of 31 December 2025, the fair value of outstanding commodity derivatives amounted to USD 0.0 million. Unrealised gains and losses are recognised in OCI. Note that the cost price (time value agreed at the inception of the contracts) for the options is paid at the time of realisation (time of exercise or expiration) and that this deferred payment is presented as current liabilities in the balance sheet, see table to the right.
Commodity derivatives - financial liabilities
USD million | Note | 2025 | 2024 |
The beginning of the period | -0.1 | - | |
Additions through business combinations | - | -8.0 | |
New derivatives | - | - | |
Realised hedges exercised | 5 | - | 1.4 |
Change in fair value realised hedges | 0.1 | 3.6 | |
Change in fair value unrealised hedges | - | 2.9 | |
The end of the period | - | -0.1 |
As of 31 December 2025, the fair value of outstanding commodity derivatives liabilities are USD 0.0 million. Unrealised gains and losses are recognised in OCI. \u00a0
Derivative financial instruments
The Company uses derivative financial instruments, such as Brent crude put options to hedge its commodity price risks.
As of 31 December 2025, the Company had the following volumes of Brent crude oil put options in place and with the following strike prices:
Hedging instruments | Volume (no of put options outstanding at balance sheet date) in thousands (BOE) | Excercise price (USD per BOE) |
Brent crude oil put options 31.12.2025, exercisable in 2026 | - | - |
Hedging instruments | Volume (no of put options outstanding at balance sheet date) in thousands (MWH) | Excercise price (EUR per MWH) |
Gas TTF long put options 31.12.2025, exercisable in 2026 | - | - |
Gas TTF short call options 31.12.2025, exercisable in 2026 | - | - |
Note 22 Financial instruments continued
Commodity derivatives - financial assets
USD million | Note | 2025 | 2024 |
The beginning of the period | 17.2 | 11.0 | |
Additions through business combinations | - | 25.2 | |
New derivatives | - | 31.9 | |
Realised hedges exercised | 5 | - | -9.2 |
Change in fair value realised hedges | -17.2 | -21.5 | |
Change in fair value unrealised hedges | - | -20.2 | |
The end of the period | - | 17.2 |
As of 31 December 2025, the fair value of outstanding commodity derivatives amounted to USD 0.0 million. Unrealised gains and losses are recognised in OCI. Note that the cost price (time value agreed at the inception of the contracts) for the options is paid at the time of realisation (time of exercise or expiration) and that this deferred payment is presented as current liabilities in the balance sheet, see table to the right.
Commodity derivatives - financial liabilities
USD million | Note | 2025 | 2024 |
The beginning of the period | -0.1 | - | |
Additions through business combinations | - | -8.0 | |
New derivatives | - | - | |
Realised hedges exercised | 5 | - | 1.4 |
Change in fair value realised hedges | 0.1 | 3.6 | |
Change in fair value unrealised hedges | - | 2.9 | |
The end of the period | - | -0.1 |
As of 31 December 2025, the fair value of outstanding commodity derivatives liabilities are USD 0.0 million. Unrealised gains and losses are recognised in OCI. \u00a0
Note 23 Cash and cash equivalents
USD million | 31 Dec 2025 | 31 Dec 2024 |
Bank deposits, unrestricted | 683.6 | 266.6 |
Bank deposit, restricted, employee taxes | 16.2 | 12.3 |
Total bank deposits | 699.9 | 278.9 |
Note 24 Share capital and shareholders
As of 31 December 2025, the total share capital of the Company is USD 46 million or NOK\u00a0399\u00a0million. The share capital is divided into 2 496 406 246 ordinary shares and 4\u00a0Class\u00a0B shares. Each share has a nominal value of NOK 0.16. The ordinary shares represent NOK\u00a0399\u00a0424 999.36 of the total share capital, while the Class B shares represent NOK 0.64 of\u00a0the total share capital.
All shares rank pari passu and have equal rights in all respects, including voting rights, dividends and other distributions, except for the class B shares with respect to board appointments. Four members to the board, will be elected by the general meeting with a simple majority among the votes cast for Class B shares. Such number to be reduced if the holder of the Class B shares holds less shares of the Company.
V\u00e5r Energi ASA\u2019s share saving program gives employees the opportunity to buy shares in V\u00e5r\u00a0Energi ASA through monthly salary deductions. If the shares are retained for two full calendar years with continuous employment after the end of the saving year, the employees will be awarded a bonus share for each share they have purchased. This will be settled by V\u00e5r\u00a0Energi ASA buying shares in the market. The award is treated as equity settled. The\u00a0dilutive effect of equity settled shares under the share saving program is immaterial to\u00a0the\u00a0EPS calculation.
USD million | 2025 | 2024 |
Profit for the year | 846.4 | 327.1 |
EPS adj. for calc. interest / dividends on hybrid capital | -66.2 | -61.8 |
Profit for the holders of ordinary shares | 780.3 | 265.3 |
Number of shares (in millions) | 2 496 | 2 496 |
Earnings per share in USD basic and diluted | 0.31 | 0.11 |
Overview of the 20 largest shareholders registered as of 31 December 2025 | Type of account | Number of shares (in 1000) | Owing interest |
Eni International BV | Ordinary | 1 573 714 | 63.04% |
Folketrygdfondet | Ordinary | 98 597 | 3.95% |
The Northern Trust Comp, London Br | Nominee | 35 532 | 1.42% |
Clearstream Banking S.A. | Nominee | 22 934 | 0.92% |
Verdipapirfondet Alfred Berg Gamba | Ordinary | 22 082 | 0.88% |
BNP Paribas | Nominee | 19 925 | 0.80% |
Geveran Trading Company LTd | Ordinary | 17 624 | 0.71% |
JPMorgan Chase Bank, N.A., London | Nominee | 16 197 | 0.65% |
Avanza Bank AB | Broker | 15 999 | 0.64% |
VPF DNB AM Norske aksjer | Ordinary | 15 104 | 0.61% |
Deutsche Bank Aktiengesellschaft | Nominee | 14 300 | 0.57% |
UBS Switzerland AG | Nominee | 14 229 | 0.57% |
Morgan Stanley & Co. LLC | Nominee | 13 338 | 0.53% |
Nordnet Bank AB | Nominee | 11 810 | 0.47% |
The Bank of New York Mellon | Nominee | 11 340 | 0.45% |
State Street Bank and Trust Comp | Nominee | 11 201 | 0.45% |
JPMorgan Chase Bank, N.A., London | Nominee | 10 854 | 0.43% |
Verdipapirfondet DNB Norge | Ordinary | 10 467 | 0.42% |
Verdipapirfondet Alfred Berg Norge | Ordinary | 10 134 | 0.41% |
State Street Bank and Trust Comp | Nominee | 10 077 | 0.40% |
Others | 540 948 | 21.67% | |
Total number of shares | 2 496 406 | 100.0% |
Note 26 Hybrid capital
V\u00e5r Energi ASA has issued a EUR 750 million Subordinated Fixed Rate Reset Securities due on the 15th of November 2083. This is broadening the Company's range of funding sources and investor base and is reinforcing it's balance sheet with a new layer of capital. For the hybrid bond, the Company have the right to defer coupon payments and ultimately decide not to pay at maturity. Deferred coupon payments become payable, however, if the Company decide to pay dividends to its shareholders.
Hybrid bond | Maturity 2083 |
Type | Subordinated |
Financial classification | Equity (99 %) |
Determination of debt element | By calculation of Net Present Value using initial coupon as discount rate |
Carrying Amount | EUR 744 million |
Notional Amount | EUR 750 million |
Issued | 15 Nov 2023 |
Maturing | 15 Nov 2083 |
Quoted in | Luxembourg |
First redemption at par | 15 Nov 2028 |
Coupon until first reset date | 7.862% fixed rate until 15 Feb 2029 |
Calculation of coupon post first reset date | Prevailing 5 Year EUR Mid-Swap Rate plus the applicable margin (initial\u00a0credit spread + any relevant margin step-ups) |
Initial Credit Spread | 4.765% |
Margin Step-ups | +0.25% points from 15 February 2034 and +0.75% points after 15 February 2049 |
Deferral of interest payment | Optional |
Hybrid capital movements
USD million | Equity | Debt | Total |
Balance as of 31 December 2023 | 799.5 | 8.9 | 808.4 |
Profit/loss allocated to Hybrid owners | 15.6 | - | 15.6 |
Interest | - | 0.7 | 0.7 |
Currency translation | - | -0.6 | -0.6 |
Interest classified as dividend | -15.6 | - | -15.6 |
Balance as of 31 December 2024 | 799.5 | 9.0 | 808.5 |
USD million | Equity | Debt | Total |
Balance as of 31 December 2024 | 799.5 | 9.0 | 808.5 |
Profit/loss allocated to Hybrid owners | 61.3 | - | 61.3 |
Interest | - | 0.8 | 0.8 |
Currency translation | - | 1.2 | 1.2 |
Interest classified as dividend | -61.3 | - | -61.3 |
Balance as of 31 December 2025 | 799.5 | 11.0 | 810.5 |
Note 25 Financial liabilities and borrowings
Interest-bearing loans and borrowings | ||||
USD million | Coupon/ Int. Rate | Maturity | 31 Dec 2025 | 31 Dec 2024 |
Bond USD 500M Senior Notes (22/27) | 5.00% | May 2027 | 500.0 | 500.0 |
Bond USD 1000M Senior Notes (22/28) | 7.50% | Jan 2028 | 1 000.0 | 1 000.0 |
Bond USD 1000M Senior Notes (22/32) | 8.00% | Nov 2032 | 1 000.0 | 1 000.0 |
Bond USD 750M Senior Notes (25/30) | 5.875% | May 2030 | 750.0 | - |
Bond USD 750M Senior Notes (25/35) | 6.5% | May 2035 | 750.0 | - |
Bond EUR 600M Senior Notes (23/29) | 5.50% | May 2029 | 719.4 | 640.7 |
Bond EUR 1000M Senior Notes (25/31) | 3.875% | Mar 2031 | 1 175.0 | - |
Subord. EUR 750M Fixed Rate Sec. (23/83) | 7.862% | Nov 2083 | 11.0 | 9.0 |
RCF Working capital facility | 1.08%+SOFR +CAS | May 2025 | - | 1 475.0 |
RCF Liquidity facility | 1.13%+SOFR +CAS | May 2025 | - | 495.0 |
RCF Working capital facility | 1.00%+SOFR +CAS | May 2028 | - | - |
RCF Liquidity facility | 0.95%+SOFR +CAS | May 2030 | - | - |
Prepaid loan expenses | -63.1 | -37.5 | ||
Accrued interests | 99.6 | 54.7 | ||
Total interest-bearing loans and borrowings | 5 942.0 | 5 136.9 | ||
Of which current and non-current: | ||||
Interest-bearing loans, current | 99.6 | 54.7 | ||
Interest-bearing loans and borrowings | 5 842.3 | 5 082.2 | ||
Bond EUR Senior Notes (23/29) | ||||
Fair value of hedge related to EUR senior notes | 12.9 | 19.1 | ||
Hedge inefficiency related to EUR senior notes | 1.5 | -1.8 | ||
Bond EUR Senior Notes net including FV hedge | 705.0 | 623.3 |
Credit facilities - utilised and unused amount | ||
USD million | 31 Dec 2025 | 31 Dec 2024 |
Drawn amount credit facility | - | 1 970 |
Undrawn amount credit facilities | 2 750 | 1 030 |
Accrued interests has been reclassified from note 29 Other current liabilities to note 25 Financial\u00a0liabilities and borrowings in 2025.
V\u00e5r Energi ASA has five senior USD notes and two senior EUR notes outstanding. The senior notes are registered on the Luxembourg Stock Exchange (LuxSE) and coupon payments are made semi-annually for the USD notes and annually for the EUR notes. The senior notes have no\u00a0financial covenants. The fair value of the bonds as of 31 December was USD 6 218 million.
In March 2025, V\u00e5r Energi ASA issued EUR 1 000 million Senior Notes maturing in 2031. In\u00a0May\u00a02025, the Company issued two tranches of USD Senior Notes of 750 million each, maturing in 2030 and 2035 respectively.
The liability of V\u00e5r Energi ASA\u2019s EUR 750 million Subordinated Fixed Rate Reset Securities due in\u00a02083 is reflected as interest bearing debt. For more details on the EUR Fixed Rate Reset Security, see note 18.
In May 2025, the Company refinanced its unsecured revolving credit facilities by signing a new agreement totaling USD 2.75 billion, split over a USD 1 000 million working capital facility and a USD 1 750 million liquidity facility maturing in 2028 and 2030 respectively with the option to extend for additional two years at the lenders\u2019 discretion.
The facilities have covenants covering leverage (net interest-bearing debt to 12 months rolling EBITDAX not to exceed 3.5) and interest coverage (EBITDA to 12 months rolling interest expenses shall exceed 5) which will be tested at the end of each calendar quarter. The interest rate payable for each of the facilities is determined by timing and the Company\u2019s credit rating taking the aggregate of the Secured Overnight Financing Rate (SOFR) and the Credit Adjustment Spread (CAS) and adding the applicable margin for the present period as shown in the table.
Note 26 Hybrid capital
V\u00e5r Energi ASA has issued a EUR 750 million Subordinated Fixed Rate Reset Securities due on the 15th of November 2083. This is broadening the Company's range of funding sources and investor base and is reinforcing it's balance sheet with a new layer of capital. For the hybrid bond, the Company have the right to defer coupon payments and ultimately decide not to pay at maturity. Deferred coupon payments become payable, however, if the Company decide to pay dividends to its shareholders.
Hybrid bond | Maturity 2083 |
Type | Subordinated |
Financial classification | Equity (99 %) |
Determination of debt element | By calculation of Net Present Value using initial coupon as discount rate |
Carrying Amount | EUR 744 million |
Notional Amount | EUR 750 million |
Issued | 15 Nov 2023 |
Maturing | 15 Nov 2083 |
Quoted in | Luxembourg |
First redemption at par | 15 Nov 2028 |
Coupon until first reset date | 7.862% fixed rate until 15 Feb 2029 |
Calculation of coupon post first reset date | Prevailing 5 Year EUR Mid-Swap Rate plus the applicable margin (initial\u00a0credit spread + any relevant margin step-ups) |
Initial Credit Spread | 4.765% |
Margin Step-ups | +0.25% points from 15 February 2034 and +0.75% points after 15 February 2049 |
Deferral of interest payment | Optional |
Hybrid capital movements
USD million | Equity | Debt | Total |
Balance as of 31 December 2023 | 799.5 | 8.9 | 808.4 |
Profit/loss allocated to Hybrid owners | 15.6 | - | 15.6 |
Interest | - | 0.7 | 0.7 |
Currency translation | - | -0.6 | -0.6 |
Interest classified as dividend | -15.6 | - | -15.6 |
Balance as of 31 December 2024 | 799.5 | 9.0 | 808.5 |
USD million | Equity | Debt | Total |
Balance as of 31 December 2024 | 799.5 | 9.0 | 808.5 |
Profit/loss allocated to Hybrid owners | 61.3 | - | 61.3 |
Interest | - | 0.8 | 0.8 |
Currency translation | - | 1.2 | 1.2 |
Interest classified as dividend | -61.3 | - | -61.3 |
Balance as of 31 December 2025 | 799.5 | 11.0 | 810.5 |
Note 25 Financial liabilities and borrowings
Interest-bearing loans and borrowings | ||||
USD million | Coupon/ Int. Rate | Maturity | 31 Dec 2025 | 31 Dec 2024 |
Bond USD 500M Senior Notes (22/27) | 5.00% | May 2027 | 500.0 | 500.0 |
Bond USD 1000M Senior Notes (22/28) | 7.50% | Jan 2028 | 1 000.0 | 1 000.0 |
Bond USD 1000M Senior Notes (22/32) | 8.00% | Nov 2032 | 1 000.0 | 1 000.0 |
Bond USD 750M Senior Notes (25/30) | 5.875% | May 2030 | 750.0 | - |
Bond USD 750M Senior Notes (25/35) | 6.5% | May 2035 | 750.0 | - |
Bond EUR 600M Senior Notes (23/29) | 5.50% | May 2029 | 719.4 | 640.7 |
Bond EUR 1000M Senior Notes (25/31) | 3.875% | Mar 2031 | 1 175.0 | - |
Subord. EUR 750M Fixed Rate Sec. (23/83) | 7.862% | Nov 2083 | 11.0 | 9.0 |
RCF Working capital facility | 1.08%+SOFR +CAS | May 2025 | - | 1 475.0 |
RCF Liquidity facility | 1.13%+SOFR +CAS | May 2025 | - | 495.0 |
RCF Working capital facility | 1.00%+SOFR +CAS | May 2028 | - | - |
RCF Liquidity facility | 0.95%+SOFR +CAS | May 2030 | - | - |
Prepaid loan expenses | -63.1 | -37.5 | ||
Accrued interests | 99.6 | 54.7 | ||
Total interest-bearing loans and borrowings | 5 942.0 | 5 136.9 | ||
Of which current and non-current: | ||||
Interest-bearing loans, current | 99.6 | 54.7 | ||
Interest-bearing loans and borrowings | 5 842.3 | 5 082.2 | ||
Bond EUR Senior Notes (23/29) | ||||
Fair value of hedge related to EUR senior notes | 12.9 | 19.1 | ||
Hedge inefficiency related to EUR senior notes | 1.5 | -1.8 | ||
Bond EUR Senior Notes net including FV hedge | 705.0 | 623.3 |
Credit facilities - utilised and unused amount | ||
USD million | 31 Dec 2025 | 31 Dec 2024 |
Drawn amount credit facility | - | 1 970 |
Undrawn amount credit facilities | 2 750 | 1 030 |
Accrued interests has been reclassified from note 29 Other current liabilities to note 25 Financial\u00a0liabilities and borrowings in 2025.
V\u00e5r Energi ASA has five senior USD notes and two senior EUR notes outstanding. The senior notes are registered on the Luxembourg Stock Exchange (LuxSE) and coupon payments are made semi-annually for the USD notes and annually for the EUR notes. The senior notes have no\u00a0financial covenants. The fair value of the bonds as of 31 December was USD 6 218 million.
In March 2025, V\u00e5r Energi ASA issued EUR 1 000 million Senior Notes maturing in 2031. In\u00a0May\u00a02025, the Company issued two tranches of USD Senior Notes of 750 million each, maturing in 2030 and 2035 respectively.
The liability of V\u00e5r Energi ASA\u2019s EUR 750 million Subordinated Fixed Rate Reset Securities due in\u00a02083 is reflected as interest bearing debt. For more details on the EUR Fixed Rate Reset Security, see note 18.
In May 2025, the Company refinanced its unsecured revolving credit facilities by signing a new agreement totaling USD 2.75 billion, split over a USD 1 000 million working capital facility and a USD 1 750 million liquidity facility maturing in 2028 and 2030 respectively with the option to extend for additional two years at the lenders\u2019 discretion.
The facilities have covenants covering leverage (net interest-bearing debt to 12 months rolling EBITDAX not to exceed 3.5) and interest coverage (EBITDA to 12 months rolling interest expenses shall exceed 5) which will be tested at the end of each calendar quarter. The interest rate payable for each of the facilities is determined by timing and the Company\u2019s credit rating taking the aggregate of the Secured Overnight Financing Rate (SOFR) and the Credit Adjustment Spread (CAS) and adding the applicable margin for the present period as shown in the table.
Note 27 Asset retirement obligations
USD million | Note | 2025 | 2024 |
Beginning of period | 3 388.9 | 3 295.1 | |
Additions through business combinations | - | 371.5 | |
Change in estimate | 15 | 122.0 | 373.2 |
Change in discount rate | 15 | -136.1 | -204.2 |
Accretion discount | 12 | 144.3 | 115.7 |
Incurred removal cost | -116.4 | -66.8 | |
Disposals | - | -103.8 | |
Currency translation effects | 428.8 | -391.7 | |
Total asset retirement obligations | 3 831.5 | 3 388.9 | |
Short-term | 188.5 | 105.2 | |
Long-term | 3 643.0 | 3 283.7 | |
Breakdown by decommissioning period | 31 Dec 2025 | 31 Dec 2024 | |
2025-2030 | 502.4 | 216.5 | |
2031-2040 | 1 652.7 | 1 949.2 | |
2041-2050 | 1 100.4 | 882.8 | |
2051-2061 | 576.0 | 340.5 |
The estimate is based on executing a concept for abandonment in accordance with the Petroleum Activities Act and international regulations and guidelines. The\u00a0calculations assume an inflation rate of 2.5% for 2026 and 2% forward and discount rates between 3.8%\u00a0-\u00a04.1% per 31\u00a0December 2025. The\u00a0assumptions per 31 December 2024 for inflation rates were 3% for 2025 and 2% forward and discount rates between 3.8% -\u00a04.1%. The\u00a0discount rates are based on risk-free interest without addition of credit margin.
2025 payments for decommissioning of oil and gas fields (abex) are mainly related to Statfjord, Ekofisk, Goliat and Balder/Ringhorne.
V\u00e5r Energi has a contractual retirement obligation as a shipper in Gassled booked to other non-current liabilities in the balance sheet statement. V\u00e5r\u00a0Energi has accrued USD\u00a095.7 million for this purpose per 31\u00a0December 2025, compared to USD\u00a078.8\u00a0million per 31 December 2024.
Note 28 Other non-current liabilities
USD million | Note | 31 Dec 2025 | 31 Dec 2024 |
Removal provision Gassled | 2 | 95.7 | 78.8 |
Decommissioning deposit | 12.7 | 10.9 | |
Deferred gain | 8.1 | 7.5 | |
Other1 | 327.4 | 17.9 | |
Total other non-current liabilities | 443.9 | 115.0 |
1Other consist of the Company's net share of the Gj\u00f8a liability to Vega, Duva\u00a0and\u00a0Nova licences and various\u00a0other\u00a0provisions.
Note 29 Other current liabilities
USD million | Note | 31 Dec 2025 | 31 Dec 2024 |
Net overlift of hydrocarbons | 217.6 | 162.5 | |
Net payables to joint operations | 415.6 | 365.5 | |
Employee payables and accrued public charges | 49.6 | 47.5 | |
Contingent consideration, current | -0.2 | - | |
Deferred payment for option premiums - oil puts | - | 32.0 | |
Other payables | 12.0 | 21.3 | |
Total other current liabilities | 694.5 | 628.8 |
Accrued interests has been reclassified from note 29 Other current liabilities to note 25 Financial liabilities and borrowings in 2025.
Note 30 Commitments, provisions and contingent consideration
Other contractual obligations
Minimum work programs
V\u00e5r Energi is required to participate in the approved work programs for the licences. Together with the licence partners there is also an obligation to participate in exploration wells according to the licence agreements. Commitments V\u00e5r Energi has entered into contractual commitments to secure planned activities. The numbers disclosed in the table below, represents V\u00e5r Energi\u2019s share of capital and operation expenditures from its participation in operated and non-operated exploration, development and production projects, as well as corporate activities.
In December 2025, V\u00e5r Energi signed a long-term lease with Bane Nor/K2 for a new headquarter in Stavanger from 2029. In the beginning of 2026 V\u00e5r Energi signed a helicopter agreement with Bristow from September 1 2026. Both agreements will be accounted for under IFRS 16 when the leases commence.
The table below excludes contracts reported as\u00a0lease, as disclosed in note 31 Lease agreements.
USD million | 31 Dec 2025 | 31 Dec 2024 |
Within one year | 138 | 225 |
After one year but not more than five years | 101 | 59 |
More than five years | 245 | 0 |
Total commitments | 485 | 284 |
Note 30 Commitments, provisions and contingent consideration continued
Liability for damages/insurance
V\u00e5r Energi\u2019s operations involve risk for damages, including pollution. Installations and operations\u00a0are covered by an operations insurance policy.
Guarantees
V\u00e5r Energi has contingent liabilities in respect of agreements with pipeline and processing companies, whereby it may be required to provide such companies with additional funds against future transportation and processing of petroleum liquids and natural gas delivered by V\u00e5r Energi to these companies.
Eni International B.V. has issued a guarantee to ExxonMobil for the seller\u2019s subsidiary removal cost obligations per Norwegian Law, in connection with V\u00e5r Energi\u2019s asset following the merger with Point Resources in 2018 and the acquisition of assets from ExxonMobil in 2019. V\u00e5r Energi pays and expenses an annual fee to Eni International B.V, see note 10. The total estimated net present value of the fee payments as of 31 December 2025 is USD 297 million, with a payment profile that is reduced according to the\u00a0payment profile of decommissioning of asset following the merger with Point Resources in 2018 and the acqusition of assets from ExxonMobil in 2019.
Provisions and Contingencies
During the normal course of its business, the Company will be involved in disputes, including tax disputes. The Company makes accruals for probable liabilities related to litigation and claims based\u00a0on management\u2019s best judgment and in line with IAS37 and IAS12.
After disagreements among the Breidablikk Unit participants, the Ministry of Energy resolved the distribution of the Breidablikk field on June 29, 2021, and this decision was confirmed by the King in Council on October 8, 2021. According to the allocation, V\u00e5r Energi hold a 34.4% equity share in the field. V\u00e5r Energi argue that it has received about 5% less than what it is entitled to. The claim has been dismissed by the S\u00f8r-Rogaland District Court and the Gulating Appeal Court. V\u00e5r Energi has appealed to the Supreme Court, a hearing is likely in August 2026. Should the Supreme Court rule in favor of V\u00e5r Energi, the case will return to the Court of Appeal for a further review.
On January 18, 2024, the Oslo District Court found that government approvals for the Plans for Development and Operation (PDO) for Breidablikk, Tyrving, and Yggdrasil were invalid because of\u00a0inadequate climate impact assessments regarding CO2combustion emissions from end-users. A\u00a0temporary injunction was issued to prevent new approvals for activities on these fields. V\u00e5r\u00a0Energi is not a party to the dispute but is impacted as a licensee in the Breidablikk field holding 34,4% equity share.
The Norwegian state appealed this decision, and on November 14, 2025, the Borgarting Court of Appeal determined that both previous PDO approvals and the Ministry of Energy\u2019s 2024 decision to maintain those approvals after additional emission impact assessments were invalid due to insufficiently reasoned decisions. The court also imposed a new temporary injunction requiring the\u00a0state to issue new PDO decisions within six months of the ruling.
The state has appealed to the Supreme Court. At present, there are no direct effects on production\u00a0at Breidablikk or immediate obligations for licensees, since the Court of Appeal concluded that licensees had satisfied their requirements to carry out impact assessments.
The Snorre redetermination was concluded in early January 2026. The updated V\u00e5r Energi equity\u00a0is 18.16%, down from 18.55%, resulting in a reduction of around 7 mmboe 2P reserves net to\u00a0V\u00e5r\u00a0Energi. The outcome was the main driver for the impairment in the fourth quarter\u00a0of 2025.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:549300LIVN3FFOJN2K47", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s6__6__90": { "value": "Note 32 Related party transactions
V\u00e5r Energi has a number of transactions with other wholly owned or controlled companies by the shareholders. The related party transactions reported is with entities owned or controlled by the majority ultimate shareholder of V\u00e5r Energi, Eni S.p.A. Revenues are mainly related to sale of oil, gas and NGL while the expenditures are mainly related to technical services, seconded personnel, insurance, guarantees and rental cost.
Current assets | ||
USD million | 31 Dec 2025 | 31 Dec 2024 |
Trade receivables | ||
Eni Trade & Biofuels SpA | 397.7 | 376.6 |
Eni SpA | 58.2 | 71.7 |
Other | 0.6 | 0.6 |
Total trade receivables | 456.5 | 448.9 |
All receivables are due within 1 year. The majority of trade receivables are sold per 31 December 2025 (see\u00a0note\u00a020\u00a0for details).
Current liabilities | ||
USD million | 31 Dec 2025 | 31 Dec 2024 |
Account Payables | ||
Eni Trade & Biofuels SpA | - | 21.3 |
Eni SpA | 0.1 | 10.4 |
Eni International BV | 18.5 | 17.1 |
Other | - | 0.8 |
Total account payables | 18.6 | 49.6 |
Sales revenue | ||
USD million | 2025 | 2024 |
Eni Trade & Biofuels SpA | 5 458.0 | 4 728.8 |
Eni SpA | 812.1 | 751.4 |
Eni Global Energy Markets | 0.6 | 61.4 |
Total sales revenue | 6 270.7 | 5 541.6 |
Operating and capital expenditures | ||
USD million | 2025 | 2024 |
Eni Trade & Biofuels SpA | 10.7 | 33.8 |
Eni SpA | 3.8 | 17.0 |
Eni International BV | 18.1 | 18.9 |
Other | 0.4 | 4.9 |
Total operating and capital expenditures | 33.0 | 74.6 |
Note 33 Licence ownerships
Fields | WI % | Operator | Licences | Concession period expires |
ALBUSKJELL/VEST EKOFISK | 52.3% | ConocoPhillips | PL 018F | 2048 |
BALDER | 90.0% | V\u00e5r Energi | PL 001/PL 027/PL 027C/PL 169/PL 028 | 2030 |
BAUGE | 30.0% | Equinor | PL 348/PL 348B | 2029 |
BREIDABLIKK | 34.4% | Equinor | PL 001DS/PL 027FS/PL 169/PL 169B2 | 2030 |
BYRDING | 15.0% | Equinor | PL 090B/PL 090C/PL 248 | 2026/2035 |
DUVA | 30.0% | V\u00e5r Energi | PL 636/PL 636C | 2044 |
EKOFISK | 12.4% | ConocoPhillips | PL 018/PL 018 B | 2048 |
ELDFISK | 12.4% | ConocoPhillips | PL 018 | 2048 |
EMBLA | 12.4% | ConocoPhillips | PL 018 | 2048 |
FENJA | 75.0% | V\u00e5r Energi | PL 586 | 2039 |
FRAM | 40.0% | Equinor | PL 090/PL 090E | 2040 |
FRAM H-NORD | 10.80% | Equinor | PL 090G/PL 248 | 2035 |
GJ\u00d8A | 30.0% | V\u00e5r Energi | PL 153 | 2028 |
GOLIAT | 65.0% | V\u00e5r Energi | PL 229 | 2042 |
GRANE | 28.3% | Equinor | PL 001CS/PL 169B1 | 2030 |
GUDRUN | 25.0% | Equinor | PL 025 | 2032 |
GUNGNE | 13.0% | Equinor | PL 046 | 2028 |
HALTEN \u00d8ST | 24.6% | Equinor | PL074CS/PL074B/PL263/PL263B/PL312/PL312B/PL473 | 2027 |
HEIDRUN | 5.2% | Equinor | PL 095/PL 124 | 2045 |
HYME | 30.0% | Equinor | PL 348 | 2029 |
JOHAN CASTBERG | 30.0% | Equinor | PL 532 | 2049 |
KRISTIN | 16.7% | Equinor | PL 134D | 2033 |
LAVRANS | 15.0% | Equinor | PL 199 | 2033 |
Fields | WI % | Operator | Licences | Concession period expires |
MIKKEL | 48.4% | Equinor | PL 092/PL 121 | 2028 |
MORVIN | 30.0% | Equinor | PL 134B | 2027 |
NJORD | 22.5% | Equinor | PL 107/PL 107C/PL 132 | 2034 |
ORMEN LANGE | 6.3% | Norske Shell | PL 208/PL 250 | 2040/2041 |
RINGHORNE \u00d8ST | 92.6% | V\u00e5r Energi | PL 027/PL 169E | 2030 |
SIGYN | 40.0% | Equinor | PL 072 | 2035 |
SLEIPNER VEST | 17.2% | Equinor | PL 029/PL 046 | 2028 |
SLEIPNER \u00d8ST | 15.4% | Equinor | PL 046 | 2028 |
SNORRE | 18.6% | Equinor | PL 057/PL 089 | 2040 |
SN\u00d8HVIT | 12.0% | Equinor | PL064/PL077/PL078/PL097/PL099/PL100/PL110/PL110B/PL448 | 2035 |
STATFJORD | 21.4% | Equinor | PL 037 | 2040 |
STATFJORD NORD | 25.0% | Equinor | PL 037 | 2040 |
STATFJORD \u00d8ST | 20.6% | Equinor | PL 037/PL 089 | 2040 |
SVALIN | 13.0% | Equinor | PL 169 | 2030 |
SYGNA | 21.0% | Equinor | PL 037/PL 089 | 2040 |
TOMMELITEN ALPHA | 9.1% | ConocoPhillips | PL044 | 2028 |
TOR | 10.8% | ConocoPhillips | PL 006/PL 018 | 2048 |
TORDIS | 16.1% | Equinor | PL 089 | 2040 |
TRESTAKK | 40.9% | Equinor | PL 091/PL 091D | 2029 |
TYRIHANS | 18.0% | Equinor | PL 073/PL 073 B/PL 091 | 2029 |
VEGA | 3.3% | Harbour Energy | PL 090C/PL 248/PL 248B | 2035 |
VIGDIS | 16.1% | Equinor | PL 089 | 2040 |
\u00c5SGARD | 22.7% | Equinor | PL062/PL074/PL094/PL094 B/PL134/PL237/PL479 | 2027 |
Note 33 Licence ownerships continued
Licences | WI % | Operator |
PL001 | 90.0% | V\u00e5r Energi |
PL001 CS | 100.0% | V\u00e5r Energi |
PL001 DS | 100.0% | V\u00e5r Energi |
PL018 | 12.4% | ConocoPhillips |
PL018 B | 52.3% | ConocoPhillips |
PL018 F | 52.3% | ConocoPhillips |
PL025 | 25.0% | Equinor |
PL027 | 90.0% | V\u00e5r Energi |
PL027 C | 90.0% | V\u00e5r Energi |
PL027 FS | 100.0% | V\u00e5r Energi |
PL027 HS | 90.0% | V\u00e5r Energi |
PL028 | 90.0% | V\u00e5r Energi |
PL028 C | 13.0% | Equinor |
PL028 S | 90.0% | V\u00e5r Energi |
PL029 | 85.0% | V\u00e5r Energi |
PL037 | 25.0% | Equinor |
PL044 | 13.1% | ConocoPhillips |
PL046 | 13.0% | Equinor |
PL057 | 4.9% | Equinor |
PL062 | 9.8% | Equinor |
PL 064 | 15.5% | Equinor |
PL072 | 40.0% | Equinor |
PL072 B | 50.0% | Equinor |
PL073 | 12.1% | Equinor |
PL073 B | 14.5% | Equinor |
PL074 | 39.2% | Equinor |
PL074 B | 39.2% | Equinor |
Licences | WI % | Operator |
PL074 CS | 39.2% | Equinor |
PL074 DS | 39.2% | Equinor |
PL074 ES | 39.2% | Equinor |
PL077 | 12.0% | Equinor |
PL078 | 12.0% | Equinor |
PL089 | 16.1% | Equinor |
PL089 BS | 16.1% | Equinor |
PL089 CS | 16.1% | Equinor |
PL090 | 40.0% | Equinor |
PL090 B | 15.0% | Equinor |
PL090 C | 15.0% | Harbour Energy |
PL090 E | 40.0% | Equinor |
PL090 G | 15.0% | Equinor |
PL090 I | 40.0% | Equinor |
PL090 JS | 15.0% | Equinor |
PL091 | 40.9% | Equinor |
PL091 D | 40.9% | Equinor |
PL091 E | 40.9% | Equinor |
PL091 G | 40.9% | Equinor |
PL092 | 54.9% | Equinor |
PL094 | 34.3% | Equinor |
PL094 B | 22.7% | Equinor |
PL095 | 5.0% | ConocoPhillips |
PL097 | 12.0% | Equinor |
PL099 | 12.0% | Equinor |
PL100 | 6.0% | Equinor |
PL107 | 22.5% | Equinor |
Licences | WI % | Operator |
PL107 B | 22.5% | Equinor |
PL107 C | 22.5% | Equinor |
PL107 D | 22.5% | Equinor |
PL110 | 12.0% | Equinor |
PL110 B | 12.0% | Equinor |
PL121 | 34.9% | Equinor |
PL124 | 10.0% | Equinor |
PL124 B | 10.0% | Equinor |
PL132 | 22.5% | Equinor |
PL134 | 30.0% | Equinor |
PL134 B | 30.0% | Equinor |
PL134 C | 30.0% | Equinor |
PL134 D | 30.0% | Equinor |
PL134 E | 30.0% | Equinor |
PL153 | 30.0% | V\u00e5r Energi |
PL153 B | 30.0% | V\u00e5r Energi |
PL153 C | 30.0% | V\u00e5r Energi |
PL169 | 13.0% | Equinor |
PL169 B1 | 7.0% | Equinor |
PL169 B2 | 10.0% | Equinor |
PL169 E | 100.0% | V\u00e5r Energi |
PL187 | 25.0% | Equinor |
PL199 | 15.0% | Equinor |
PL209 | 10.0% | Equinor |
PL219 | 50.0% | Equinor |
PL220 | 15.0% | Equinor |
PL229 | 65.0% | V\u00e5r Energi |
Licences | WI % | Operator |
PL229 B | 65.0% | V\u00e5r Energi |
PL229 E | 50.0% | V\u00e5r Energi |
PL229 G | 50.0% | V\u00e5r Energi |
PL229 H | 65.0% | V\u00e5r Energi |
PL229 I | 65.0% | V\u00e5r Energi |
PL237 | 22.7% | Equinor |
PL250 | 5.9% | Shell |
PL257 | 15.0% | Equinor |
PL263 C | 9.8% | Equinor |
PL293 | 25.0% | Equinor |
PL312 | 41.0% | Equinor |
PL312 B | 41.0% | Equinor |
PL348 | 30.0% | Equinor |
PL348 B | 30.0% | Equinor |
PL375 | 20.0% | Equinor |
PL393 | 80.0% | V\u00e5r Energi |
PL448 | 12.0% | Equinor |
PL473 | 39.2% | Equinor |
PL479 | 22.7% | Equinor |
PL489 | 40.0% | V\u00e5r Energi |
PL532 | 30.0% | Equinor |
PL554 | 30.0% | Equinor |
PL554 B | 30.0% | Equinor |
PL554 C | 30.0% | Equinor |
PL554 D | 30.0% | Equinor |
PL554E | 30.0% | Equinor |
PL554F | 30.0% | Equinor |
Note 33 Licence ownerships continued
Licences | WI % | Operator |
PL586 | 75.0% | V\u00e5r Energi |
PL586 B | 75.0% | V\u00e5r Energi |
PL608 | 30.0% | Equinor |
PL636 | 30.0% | V\u00e5r Energi |
PL636 B | 30.0% | V\u00e5r Energi |
PL636 C | 30.0% | V\u00e5r Energi |
PL636 D | 30.0% | V\u00e5r Energi |
PL820 S | 44.0% | V\u00e5r Energi |
PL820 SB | 44.0% | V\u00e5r Energi |
PL882 | 45.0% | V\u00e5r Energi |
PL917 | 40.0% | V\u00e5r Energi |
PL925 | 10.0% | Equinor |
PL929 | 40.0% | V\u00e5r Energi |
PL932 | 20.0% | Aker BP |
PL932 B | 20.0% | Aker BP |
PL938 | 50.0% | V\u00e5r Energi |
PL956 | 65.0% | V\u00e5r Energi |
PL984 | 20.0% | DNO Norge |
PL1002 | 42.3% | V\u00e5r Energi |
PL1002B | 42.3% | V\u00e5r Energi |
PL1002C | 42.3% | V\u00e5r Energi |
PL1025 S | 60.0% | V\u00e5r Energi |
PL1025 SB | 60.0% | V\u00e5r Energi |
PL1042 | 30.0% | Equinor |
PL1073 | 70.0% | V\u00e5r Energi |
PL1078 | 30.0% | Equinor |
PL1079 | 30.0% | V\u00e5r Energi |
Licences | WI % | Operator |
PL1080 | 30.0% | Equinor |
PL1090 | 50.0% | V\u00e5r Energi |
PL1105 S | 50.0% | V\u00e5r Energi |
PL1110 | 30.0% | Aker BP |
PL1121 | 30.0% | Equinor |
PL1131 | 40.0% | V\u00e5r Energi |
PL1132 | 60.0% | V\u00e5r Energi |
PL1154 | 40.0% | V\u00e5r Energi |
PL1168 | 50.0% | V\u00e5r Energi |
PL1179 | 40.0% | Equinor |
PL1180 | 40.0% | V\u00e5r Energi |
PL1185 | 20.0% | Equinor |
PL1188 | 22.7% | Equinor |
PL1189 | 22.7% | Equinor |
PL1192 | 100.0% | V\u00e5r Energi |
PL1194 | 30.0% | OMV |
PL1194 B | 30.0% | OMV |
PL1194 C | 30.0% | OMV |
PL1196 | 70.0% | V\u00e5r Energi |
PL1197 | 50.0% | V\u00e5r Energi |
PL1203 | 30.0% | V\u00e5r Energi |
PL1211 | 50.0% | V\u00e5r Energi |
PL1213 S | 40.0% | V\u00e5r Energi |
PL1214 | 25.0% | Equinor |
PL1215 | 30.0% | Aker BP |
PL1217 | 20.0% | Inpex |
PL1218 | 20.0% | Aker BP |
Licences | WI % | Operator |
PL1218 B | 20.0% | Aker BP |
PL1219 | 50.0% | V\u00e5r Energi |
PL1224 | 50.0% | V\u00e5r Energi |
PL1227 | 22.7% | Equinor |
PL1231 | 30.0% | OMV |
PL1236 | 30.0% | Equinor |
PL1237 | 40.0% | V\u00e5r Energi |
PL1238 | 25.0% | Equinor |
PL1239 | 30.0% | Equinor |
PL1241 | 50.0% | V\u00e5r Energi |
PL1242 | 20.0% | Aker BP |
PL1243 | 20.0% | Aker BP |
PL1246 | 17.2% | Equinor |
PL1254 | 40.0% | V\u00e5r Energi |
PL1260 | 45.0% | V\u00e5r Energi |
PL1262 | 20.0% | Wellesley |
PL1263 | 20.0% | Inpex |
PL1265 | 40.0% | Equinor |
PL1268 | 30.0% | Aker BP |
PL1269 | 30.0% | Equinor |
PL1274 | 20.0% | OMV |
PL1275 | 50.0% | V\u00e5r Energi |
Note 34 Proved developed reserves (un-audited)
mmboe | |
Proved developed reserves as at 31 Dec 23 | 303.4 |
Production 2024 | -102.5 |
Acquisition/disposal | 66.0 |
Revisions 2024 | 64.1 |
Proved developed reserves as at 31 Dec 24 | 331.0 |
Production 2025 | -121.3 |
Transfers to developed | 254.0 |
Revisions 2025 | 72.3 |
Proved developed reserves as at 31 Dec 25 | 536.0 |
Proved developed reserves as of 31 December 2025 are V\u00e5r Energi ASA's own evaluation based\u00a0on\u00a0Petroleum Resources Management System (PRMS) principles.
Third-party independent assessment has been performed by international petroleum consultants DeGolyer and MacNaughton (D&M) on all V\u00e5r Energi\u2019s fields with remaining hydrocarbon volumes classified as reserves. The results of the independent assessment indicate no material difference compared to the Company reserves presented herein.
Total proved reserves, developed and undeveloped, as of 31 December 2025 were 883\u00a0mmboe, an\u00a0increase of 107 mmboe compared to 31 December 2024.
As of 31 December 2025, the Company\u2019s total proved and probable reserves (2P) net to V\u00e5r\u00a0Energi were 1 294 mmboe, up from 1 187 mmboe as of 31 December 2024. The increase is mainly due to sanctioning of the Ekofisk PPF projects, inclusion of Balder VI and a portion of the Balder Next project, inclusion of the reserves from Goliat Gas Export and the Isflak development partly offset by reduction in Snorre reserves as a direct result of the redermination leading to reduced working interest.
V\u00e5r Energi's total proved and probable reserves are distributed with 23% in the Balder Area, 32%\u00a0in\u00a0the Barents Sea, 26% in the North Sea and 19% in the Norwegian Sea. The Company\u2019s proved\u00a0and probable reserves were split on 60% oil, 35% gas and 5% NGL.
Total contingent resources (2C) at year-end 2025 were 865 mmboe, a decrease of 62 mmboe when\u00a0compared with year-end 2024.
For further information see the Annual Statement of Reserves published on www.varenergi.no
Note 36 Subsequent events
In January 2026 V\u00e5r Energi was awarded 14\u00a0new production licences, of which 6 are as operator, in\u00a0the 2025 Awards in Predefined Areas (APA) covering mature areas.
The Snorre redetermination was concluded in early January 2026, and is effective from February 2026. The updated V\u00e5r Energi equity is 18.16%, down from 18.55%. The new equity share was already included in the impairment model pr 31 December 2025, which resulted in an impairment of technical goodwill of USD 44.9 million in the fourth quarter of 2025. In April 2026 a cash settlement will be done between the licensees where the expected outcome for the Company is a reduction in the net book value for Snorre of USD 6 million after tax. No further impairment is anticipated for Snorre the first quarter of 2026.
The own operated well Prince Updip in PL027 was concluded dry in January 2026 as well as the Equinor operated well Othello South in PL124B. V\u00e5r Energi has a 90% equity in licence PL027 and a\u00a010% equity in licence PL124B. V\u00e5r Energi has capitalised exploration drilling cost amounting to\u00a0USD\u00a017.4 million related to these wells as per 31.12.2025.
Auditor\u2019s report
Auditor\u2019s report continued
Statement by the Board of Directors and the Chief Executive Officer
Pursuant to the Norwegian Securities Trading Act Section 5-5 with related regulations, we hereby confirm that, to the best of our knowledge, the Company\u2019s, financial statements for 2025 have been prepared in accordance with IFRS Accounting Standards, as adopted by the EU, and requirements in accordance with the Norwegian Accounting Act. The information presented in the financial statements gives a true and fair view of the Company\u2019s liabilities, financial position, and results overall.
To the best of our knowledge, the Board of Directors\u2019 Report gives a true and fair view of the development, performance, and financial position of the Company, and includes a description of the principal risk and uncertainties that the Company faces. To the best of our knowledge, the sustainability
statements are prepared in compliance with the Norwegian Accounting Act chapter 2-6 including compliance with European Sustainability Reporting Standards (ESRS) and Article 8 of the EU Taxonomy Regulation. In our opinion, the Sustainability Statements give a true and fair view of the Company's sustainability performance in accordance with the stated reporting requirements.
In addition, we confirm to the best of our knowledge, that the report \u201cPayment to governments\u201d as provided in a separate section in this annual report, has been prepared in accordance with the requirements in the Norwegian Securities Trading Act Section 5-5a with related regulations.
Sandnes, 20 March 2026 \u2013 The Board of Directors of V\u00e5r Energi ASA | |
Signed electronically | |
Thorhild Widvey Chair | Liv Monica Bargem Stubholt Deputy Chair |
Francesco Gattei Board member | Guido Brusco Board member |
Francesca Rinaldi Board member | Claudia Almadori Board member |
Fabio Ignazio Romeo Board member | Ole Johan Gillebo Board member |
Jan Inge Nesheim Board member, employee elected representative | Martha Skj\u00e6veland Board member, employee elected representative |
Carl Anders Olof Kj\u00f6rling Board member, employee elected representative | Lilli Sahlman Fagerdal Board member, employee elected representative |
Nicholas John Robert Walker Chief Executive Officer |
Appendix
Table of contents
Transparency Act Report
The Norwegian Transparency Act shall promote enterprises\u2019 respect for fundamental human rights and decent working conditions and ensure that the public has access to information about how enterprises address adverse impacts on human rights and working conditions.
About V\u00e5r Energi
V\u00e5r Energi is a leading independent upstream oil and gas company operating within the geographical area Norway and the Company\u2019s business is entirely related to exploration for and production of petroleum on the NCS. The\u00a0Company has equity stakes in around 50% of all producing assets in the NCS, six of which it operates. The NCS is a well-regulated environment for value creation, known for its industry-leading safety standards, fair working conditions, and strong ethical and governance frameworks. It also benefits from a stable fiscal regime and broad support from the Norwegian population.
With around 1 450 employees, V\u00e5r Energi has a strong presence along the Norwegian coast. The headquarters are located at Forus outside Stavanger, with regional offices in Hammerfest, Flor\u00f8 and Oslo. This strategic location ensures efficient operation of the Company\u2019s fields on NCS and underscores the strong anchoring in Norway.
Human rights and decent working conditions fundamentals
V\u00e5r Energi is committed to lawful and ethical business, and to respect fundamental human rights and decent working conditions associated with its operations, supply chain and other business relationships. V\u00e5r Energi\u2019s work with human rights is anchored in national laws and recognised international frameworks. The Company\u2019s Code of Conduct, People policy, Human Rights policy and Procedure Human Rights outline this commitment, in line with the Norwegian Human Rights Act, the Norwegian Transparency Act, the Universal Declaration of Human Rights, the OECD Guidelines for Multinational Enterprises, and the ILO Declaration on Fundamental Principles and Rights at Work. V\u00e5r Energi is a participant in the UN Global Compact and supports the\u00a0Ten Principles of the UN Global Compact in the areas of Human Rights, Labour,\u00a0Environment and Anti-corruption.
The commitments include applying the precautionary principle related to health, safety and the environment and conducting due diligence on human rights and worker rights as described in the OECD Due Diligence Guidance for Responsible Business and required by the Norwegian Transparency Act. The Code of Conduct and policies, including
the Human Rights policy, are available on V\u00e5r\u00a0Energi\u2019s website.
Respect for human rights and decent working conditions was not introduced to V\u00e5r Energi with the Transparency Act. The Norwegian petroleum sector has long been subject to comprehensive regulations requiring thorough impact assessments and risk assessments. These regulations ensure that all activities on NCS are carefully evaluated regarding the environment, society, and economy before decisions are made. The assessments also map social impacts, including effects on local communities and other industries, as well as necessary measures to prevent and mitigate negative consequences. The\u00a0process involves broad participation from affected parties to ensure thorough risk assessment and mitigating measures. In addition, the Company must comply with the framework regulations\u2019 requirements for HSE in the supply chain. As an operator, V\u00e5r Energi shall see to that its suppliers and subcontractors meet the HSE requirements. V\u00e5r Energi has comprehensive management systems that promote continuous improvement of HSE conditions, and supplier risk is assessed to implement necessary measures to prevent or mitigate negative consequences. More details about this can be found in the Sustainability statement.
The Safety and Sustainability department follows up the HSE requirements, whereas the Compliance function has overall responsibility for establishing processes for implementing the requirements of the Transparency Act and the Company\u2019s commitment to human rights and decent working conditions. The function collaborates closely with the Supply Chain Management (SCM) function in evaluating risks both for individual suppliers and the supply chain, as well as risks related to other business relationships. Systematic due diligence assessments are conducted to identify and assess actual and potential negative impacts on fundamental human rights and decent working conditions that the Company have caused or contributed to, or is directly linked to, for example through suppliers. The\u00a0Compliance function is also responsible for increasing awareness in the Company about the subject and held classroom training in 2025 for the functions most exposed to third parties, including SCM, in order to increase their awareness of amongst other possible risk and impacts regarding human rights and the requirements the Company is subject to. Suppliers are contractually obligated to follow the principles of V\u00e5r Energi\u2019s Supplier Code of Conduct and adhere to fundamental human rights. Additional specific terms related to human rights and decent work are assessed concretely where this topic is important for contract execution. Suppliers are required to conduct due diligence assessments in their
supply chain and must inform V\u00e5r Energi of any findings and concerns. There is also a requirement in the supplier contracts to notify V\u00e5r Energi without undue delay when actual or potential adverse impacts on fundamental human rights and/or decent working conditions are identified within the workforce of the supplier or its supply chain or business partners and which are related to the performance of the contract. V\u00e5r Energi also reserves the right to conduct audits, including with subcontractors.
Due diligence with respect to human rights and decent working conditions
Acknowledging the Company\u2019s size, the context of its operations, business model, position in the value chain, nature of its services, industry, geographical footprint, operational activities, and what is sourced from whom, V\u00e5r Energi strives to implement adequate and effective Human Rights Due\u00a0Diligence in line with the OECD Due Diligence Guidance for Responsible Business\u00a0Conduct. The program will facilitate the avoidance of and response to adverse impacts on human and labour rights in relation\u00a0to its operations.
Human rights risk and impact assessment
The fundamental element in the Human Rights Due Diligence Program is the risk and impact assessment to get a holistic view of the
Company\u2019s risk picture in order to prioritise the most serious risks with respect to people, society and the environment. It is also to evaluate if the Company is involved in any potential negative impacts, and if so, identify mitigating measures. A DMA is the basis for this risk and impact assessment. The DMA is performed or updated on an annual basis and conducted based on the methodology guided by the ESRS requirements. The findings are reported to the Executive Committee for their approval, and to the Board of Directors. The results of the DMA show how the organisation in the short, medium and long term impacts the environment and society i.e., impact materiality (inside-out perspective), and how sustainability issues can have a financial impact on the organisation i.e., financial materiality (outside-in perspective). Fundamental human rights and decent working conditions were important part of the DMA, and three areas were identified as relevant for human rights risk, listed below. No actual negative impact was found, only potential for negative impact.
S1 \u2013 Own workforce S2 \u2013 Workers in the value chain G1 \u2013 Business conduct
More can be read about the DMA and the results in the Sustainability statement, part of V\u00e5r Energi\u2019s Annual report. In addition, a\u00a0separate annual risk assessment of Human rights is performed, looking at the risk and impacts the Company can be exposed to or contribute to, and what mitigating measures are required. Mitigating measures are made
part of the annual Compliance program to ensure follow-up.
Stakeholder analysis
Regular and meaningful engagement with affected communities and individuals, as well as with other relevant stakeholders, is a key component in ensuring the effective identification and management of human rights impacts. Stakeholder engagement has been a part of the DMA, with the purpose of bringing in new perspectives that can inform V\u00e5r Energi\u2019s priorities and ensure good\u00a0insights.
Employees
V\u00e5r Energi\u2019s employees are covered in the section \u201cESRS S1 \u2013 Own workforce\u201d in the Sustainability statement. All tariffed employees are covered by collective bargaining agreements. Employees in V\u00e5r Energi are represented by workers\u2019 representatives in the Working Environment Committee as the main form for social dialog with the Company. Employees are also regularly engaged with through town hall and department meetings.
Investors, owners, lenders, and\u00a0financial\u00a0institutions
V\u00e5r Energi is listed on the Oslo Stock Exchange under the ticker \u201cVAR\u201d. V\u00e5r Energi only operates in Norway, which is an open, transparent, and low-risk country with a well-regulated oil and gas industry with industry leading safety standards, fair working conditions and high ethical and governance frameworks. Questions regarding human rights are less frequent in meetings with these stakeholder groups.
Government agencies, institutions and\u00a0organisations
V\u00e5r Energi engages with the Ministry of Energy, the Norwegian Parliament, including members of the Energy and Environment Committee, the Norwegian Offshore Directorate, the Norwegian Ocean Industry Authority (Havtil), the Norwegian Environment Agency (NEA) and other governmental agencies. The Company is a member of Offshore Norge, an employer and industry organisation for companies with activities related to the NCS, with employees participating in several of its committees, fora and networks.
Joint venture partner projects
V\u00e5r Energi participated in Offshore Norge\u2019s initiative to develop a common set of guidelines for the Transparency Act together with other operators and joint venture (JV) partners in the industry.
Under the framework of the Transparency Act JVs can align their due diligence processes with those conducted by the operator. For this report only V\u00e5r Energi operated assets are included, and related suppliers, business partners and other stakeholders.
Operators, including V\u00e5r Energi, regularly update their JV partners about their work regarding human and labour rights and compliance with the Transparency Act. This\u00a0is\u00a0primarily done in the annual Partner Forum, but additional information can be requested as needed.
V\u00e5r Energi informed JV partners about the work with respect to the Transparency Act in the Company\u2019s Partner Forum on 9 September 2025.
Supplier employees
Supplier employees are considered first line contracted personnel, such as yard or platform personnel, or employees in the supply chain.
Yard and platform personnel: These are employees working directly at sites like the Rosenberg Worley yard and on operated offshore facilities such as Balder, Ringhorne, Gj\u00f8a and Goliat. They are integrated with the day-to-day operations and maintenance of these facilities.
Employees in corporate offices: This category includes those working in roles such as canteen personnel, IT support, security, and cleaners.
They are employed through business partners, but work within V\u00e5r Energi\u2019s offices, contributing to the smooth running of the Company's administrative and support functions.
Supplier employees working in V\u00e5r Energi\u2019s facilities are part of the Company\u2019s interaction through town hall and applicable department meetings. Most supplier employees are also part of training plans and receive appropriate
training and are part of applicable team buildings.
Sub-supplier personnel
Most sub-suppliers are actively engaged in projects for the Company\u2019s major suppliers. Positioned further down the supply chain, such personnel are often found at various specialised sites such as at manufacturing and\u00a0production facilities, as well as at fabrication sites.
Sub-supplier employees working in V\u00e5r\u00a0Energi\u2019s facilities are part of the Company\u2019s\u00a0interaction through town hall and\u00a0department meetings as appropriate.
Customers
V\u00e5r Energi only have a few customers buying oil and gas from the Company. They are all well-known international companies in the oil and gas industry, they are all based in Europe and considered low risk for contributing to adverse impacts on human and labour rights.
Indigenous people
Protecting the rights of indigenous peoples is a part of the internationally recognised fundamental principles of human rights. As\u00a0operator of the Goliat field in the Barents Sea, V\u00e5r Energi promotes the sustainable development, rights and expectations of the indigenous Sami people who depend on areas in Finnmark for their livelihood, culture
and traditions. This is incorporated into the Company\u2019s processes and way of business.
V\u00e5r Energi has no operations in or near areas of affected communities or indigenous communities1, hence the Company\u2019s operations do not directly impact affected communities. However, V\u00e5r Energi operates in accordance with Norwegian legislation and promotes the sustainable development, rights and expectations of the indigenous people in the Northern Norway. There have been no reported incidents of violated rights of indigenous people during the reporting period.
Other affected communities and\u00a0individuals
All communities and individuals who are impacted by oil and gas projects, are human rights holders. Organisations or entities, such as States, trade unions or religious institutions, are not human rights holders, but may act in a representative capacity for individuals or groups who are human rights holders. For project locations near fishing grounds, spawning grounds, breeding grounds etc. V\u00e5r Energi is expected to undergo a rigorous process of impact assessments and consultations with local communities, fisheries, and indigenous people before receiving a permit to operate. Establishing good communication lines between all parties will allow to account for local knowledge and planning time or area restrictions. The efforts to understand potential impacts early in the
project (and in procurement processes) is a further step towards risk avoidance and effective mitigation. Affected communities and individuals should also be engaged regarding the scope and assessment methodology for human rights impacts.
See section \u201cSBM-2 Interest and views of stakeholders\u201d in the Sustainability statement for more information on V\u00e5r Energi\u2019s stakeholders.
Grievance mechanism
V\u00e5r Energi\u2019s grievance mechanism is handled via the Company\u2019s whistleblower communication channel called Ethics Helpline, which is available online on the V\u00e5r Energi website. The channel is administered by a third party and ensures full anonymity. Follow-up questions and report can also be handled anonymously, and all reports are handled by a designated Whistleblowing Committee (WBC). Please see Sustainability statement, G1 \u2013 Business conduct for more information on\u00a0the\u00a0whistleblowing channel.
Questions and concerns regarding human rights can also be reported through a contact form on the Company website. By choosing Human rights in the contact form the concern will go directly to the Compliance function, which lead an internal Human Rights workgroup. It will then be evaluated if the concern should be handled by the workgroup or if it is best handled by the\u00a0WBC.
1Indigenous land defined as the STN area (in Norwegian). Definition of \u201cnear\u201d (5 km) from SASB Oil and Gas Sustainability Reporting Standard.
The\u00a0Company also has a Human Rights procedure available online, which further outlines the grievance mechanism of the Company, and more can also be read about the grievance mechanism in the Sustainability statement S2\u00a0\u2013 Workers in the value chain.
There were no grievances or concerns regarding human and labour rights received through the Ethics Helpline or via the form on the Company website in 2025, but a few information requests were received.
Supply chain analysis
V\u00e5r Energi collaborates with a broad range of suppliers, primarily supporting upstream operations and projects. The Company has registered over 1000 suppliers, the majority of whom are based in Norway and other European countries. V\u00e5r Energi operates exclusively in Norway and is committed to local engagement, prioritising Norwegian suppliers wherever possible. This strengthens regional economic activity and supports a sustainable supply chain. In 2025 over 96% of V\u00e5r Energi\u2019s total spend on purchased goods and services for the Company\u2019s operated assets came from Norwegian suppliers.
In addition to qualifying and monitoring suppliers for HSE compliance, V\u00e5r Energi conduct integrity due diligence assessments of new and existing suppliers, both under the Transparency Act and as part of the regular compliance work. The Company also performs integrity due diligence of sub-suppliers as well as all other new business partners like customers, consultants, and JV partners as in
accordance with Company procedures. Various tools and methods are used to identify and prioritise potential negative social impacts at key decision-making milestones.
V\u00e5r Energi applies a tier segmentation framework to ensure that contracts receive the appropriate level of follow-up. Contracts are assessed and categorised based on key risk factors. If a contract involves an increased risk related to human rights or working conditions, the tier segmentation ensures the correct level of monitoring and oversight. This includes regular monitoring, scheduled meetings, and structured reporting to track compliance and mitigate risks.
V\u00e5r Energi\u2019s Internal Audit department conducted an audit in fourth quarter 2024 regarding \u201cDetection and follow-up of human rights breaches in the supply chain\u201d to verify if the Company\u2019s processes for detecting and following up potential human rights breaches are in compliance with the Transparency Act requirements. There were no findings from the audit, only a few observations with recommendations that were followed up in\u00a02025.
Integrity due diligence assessment
When considering new tenders for goods and services an integrity due diligence is performed of the applicable companies according to procedure using a tool that identifies a broad range of checks, such as corruption risk, financial risk, sanctions, risk of human rights violations, and mapping and assessment of ownership structure. It also checks for
several types of crimes including human rights violations, genocide, war crimes, hate crimes, Geneva Convention violations, unlawful imprisonment, extrajudicial executions, torture, ethnic cleansing, crimes against humanity, political persecution, and political prisoners.
If the integrity due diligence assessment shows any areas of concern related to potential negative impacts regarding human and labour rights, the potential supplier must complete a comprehensive questionnaire to demonstrate that robust human rights procedures and sufficient safeguards are in place before the supplier is approved as a potential supplier. For new suppliers, V\u00e5r Energi ensures that contractual provisions are in place. This may include setting Key Performance Indicators (KPIs) to monitor compliance and performance. In 2025, the Company did not identify any suppliers where it deemed necessary to establish such KPIs. Additionally, it\u2019s essential that these suppliers have robust human rights procedures in place. Ongoing supplier relationships are monitored by Company representatives to ensure continuous insights and maintain close relations.
Once a contract is in place, potential negative impacts in the value chain are monitored through dialogue and follow-up with the value chain workers, or through the Coordinating Working Environment Committee (C-WAC). Potential negative impact on workers is always a topic in dialogue meetings with the value chain workers, particularly related to working conditions, health and safety. Working time is
also monitored through monthly approval of timesheets for many workers.
In 2025, V\u00e5r Energi performed a total of 212 integrity due diligence assessments of individual suppliers and business partners. No\u00a0actual negative impact regarding human and labour rights and no high potential for negative impact was identified which the Company has either caused, contributed to or\u00a0is directly linked to through its supply chain\u00a0or business partners.
Supplier on-site audits
V\u00e5r Energi\u2019s suppliers operating on the NCS shall register in Magnet JQS, a digital platform provided by Offshore Qualific, tailored to the energy industry, which functions both as a supplier register and a qualification tool with a focus on, among other things, human rights. Suppliers must undergo a thorough capacity assessment of their operational management system, including evaluation of risk management related to human rights. Operators on the NCS has a collaborative approach to responsible business conduct and collaborate to perform and share audit reports of suppliers in the energy sector, audits with focus on the operational management system of suppliers, security, helicopters, or human rights. The audits are administered by Offshore Qualific, and audit reports are shared in Magnet JQS. Offshore Qualific also administers networks for amongst others human rights where V\u00e5r Energi is active member. The cooperation has also been extended to include the suppliers themselves, giving further insight
into even more relevant actors' work with respect to human and labour rights.
In 2025 two on-site human rights audits of suppliers were completed by third-party auditors on behalf of V\u00e5r Energi. There were no actual adverse impacts found, but a total of two non-conformities, three observations and six improvement suggestions. The non-conformities were both regarding that the two suppliers had not passed on contractual requirements related to business conduct to sub-suppliers of V\u00e5r Energi. This is a requirement in the Company Terms & Conditions. Both suppliers also received an observation regarding limited follow-up of suppliers, and one supplier also received an observation regarding limited information in the Norwegian Transparency account. Follow-up meetings have been held and actions taken to address the non-conformities, observations and improvement suggestions.
Mitigation of significant risks
Due to the industry risk, V\u00e5r Energi assess that there is a significant inherent risk to HSE related to working conditions on the Company\u2019s installations. For this reason, comprehensive management systems have\u00a0been established to effectively manage\u00a0this risk.
Beyond this, the Company has not identified significant actual or potential negative consequences for fundamental human rights or decent work in the supply chain for work
related to V\u00e5r Energi. V\u00e5r Energi\u2019s contracts are primarily with companies operating in countries with robust labour rights and regulations. A significant proportion of the suppliers are large companies that are independent subjects under the Transparency Act. This means that these companies have their own obligations to conduct due diligence assessments and report on them. There is also a requirement in the supplier contracts to inform V\u00e5r Energi about any actual or potential adverse impacts on fundamental human rights and there have been no such reports. Concerns from value chain workers at V\u00e5r Energi facilities may also be raised in C-WAC meetings. In 2025 one such concern was raised and has been addressed.
No actual adverse impacts or significant risks have been identified in the human rights audits conducted of suppliers, but as mentioned the non-conformities and observations are still followed up and closed when issues are solved, or the recommendations are made. V\u00e5r Energi will continue to nominate suppliers for human rights audits where there could be an increased risk for adverse human rights impacts. In all recent contracts there are also a clause to audit sub-suppliers, and this will also be considered. V\u00e5r Energi\u2019s upstream value chain is complex, especially related to the manufacturing of material input commodities related to raw materials such as steel, concrete and cement. These commodities may have a potential risk for human and labour rights violations, but the large and complex supply chain may pose difficulties for detecting and
addressing incidents several levels down in the supply chain.
No reports of any adverse impacts or significant risks of adverse impacts have been reported through the whistleblowing channel, WhistleB. The Company\u2019s grievance mechanism is described in the Human Rights procedure.
Supply Chain Management personnel receive annual compliance training, including on human rights in order to address risk for human rights and decent working conditions in the supply chain. Human rights awareness training for the Company\u2019s representatives for the supplier contracts outside Supply Chain Management, which are tasked with follow-up of suppliers, is being planned in order for them to be better equipped to address risks and concerns they may encounter in the follow-up of suppliers.
KPIs related to Human Rights have been included in the supplier follow-up to ensure that the issues are not just talked about but measured and followed up. Making sure human rights is on the agenda may also help to raise concerns and issues if there should be\u00a0any.
Human rights due diligence assessments and managing human and labour rights risks are an ongoing process, and V\u00e5r Energi is working for continuous improvements.
Terms and abbreviations
Term | Definition |
The Policy | V\u00e5r Energi\u2019s Policy for Remuneration of Executive Committee |
ABEX | Payments for Decommissioning of Oil and Gas Fields |
AGM | The Annual General Meeting |
APA | Awards in Predefined Areas |
ARO | Asset Retirement Obligation |
AVP | Annual Variable Pay |
BAT | Best Available Techniques |
CAS | Credit Adjustment Spread |
CBD | UN Convention on Biological Diversity |
CCS | Carbon Capture and Storage |
CEO | Chief Executive Officer |
CFO | Chief Financial Officer |
CFFO | Cash Flow From Operations |
CGU | Cash Generating Unit |
CODM | Chief Operating Decision Maker |
COO | Chief Operating Officer |
COSO | Committee of Sponsoring Organisations of the Treadway Commission |
CPS | Current Policies Scenarios |
CRCF | Carbon Removal and Carbon Farming |
CSRD | Corporate Sustainability Reporting Directive |
Term | Definition |
CTA | Cumulative Translation Adjustment |
C-WAC | Coordinating Working Environment Committee |
D&M | DeGolyer and MacNaughton |
DEI | Diversity, Equity, and Inclusion |
Digiwells | Digital Well Center |
DMA | Double Materiality Assessment |
DSA | Norwegian Radiation and Nuclear Safety Authority |
E&P | Exploration & Production |
EBIT | Earnings Before Interest, Tax |
EBITDA | Earnings Before Interest, Tax, Depreciation, Amortisation |
EEA | European Economic Area |
EGM | Extraordinary General Meeting |
EIA | Environmental Impact Assessments |
EIR | Effective Interest |
EOP | End Of Period |
ERA | Environmental Risk Analysis |
ERM | Enterprise Risk Management |
ESG | Environmental, Social and Governance |
ESRS | European Sustainability Reporting Standards |
ETS | Emission trading system |
Term | Definition |
EU Taxonomy | EU Sustainable Finance Taxonomy |
EPS | Earnings Per Share |
FPSO | Floating Production, Storage, and Offloading |
FTE | Full-Time Equivalents |
GEC | The Global Energy and Climate Model |
GHG | Greenhouse Gas |
HR | Human Resource |
HSE | Health, Safety and Environment |
HSSE | Health, Safety, Security and Environment |
HSSEQ | Health, Safety, Security, Environment, and Quality |
IA | Internal Audit |
IDD | Integrity Due Diligence |
IEA | International Energy Agency\u2019s |
IIA | Institute of Internal Auditors |
ILO | International Labour Organisation |
IOGP | International Association of Oil & Gas |
IPCC | Intergovernmental Panel on Climate Change |
IPO | Initial Public Offering |
IRO | Impact, Risk and Opportunity |
IUCN | The International Union for Conservation of Nature |
Term | Definition |
Juster-vesenet | Norwegian Metrology Service |
JV | Joint Venture |
LC&PA | Legal, Compliance & Public Affairs department |
LCA | Life Cycle Analysis |
LNG | Liquide Natural Gas |
LSR | Life-Saving Rules |
LTI | Long-Term Incentive |
LuxSE | Luxembourg Stock Exchange |
MARI | Major Accident Risk Indicator |
NBV | Net book value |
NCCS | Norwegian CCS Research Centre |
NCS | Norwegian Continental Shelf |
NEA | Norwegian Environment Agency |
NGL | Natural Gas Liquids |
NGOs | Non-Governmental Organisations |
NIBD | Net Interest Bearing Debt |
NOFO | The Norwegian Clean Seas Association for Operating Companies |
NPI | Net Profit interest |
NPS | Net Promoter Score |
NUES | Norwegian Corporate Governance Board |
Terms and abbreviations continued
Term | Definition |
NVE | The Norwegian Water Resources and Energy Directorate |
NZE | Net Zero Emissions by 2050 Scenario |
OCI | Other Comprehensive Income |
OECD | Organisation for Economic Co-operation and Development |
PA | Protected Areas |
PDO | Plans for Development and Operation |
PPA | Purchase Price Allocation |
PPE | Personal Protective Equipment |
PPE | Property, Plant and Equipment |
PPF | Ekofisk Previous Produced Fields |
PRMS | Petroleum Resources Management System |
PSE | Process Safety Events |
R&D | Research and Development |
RCF | Revolving Credit Facility |
ROACE | Return On Average Capital Employed |
RRR | Reserves Replacement Ratio |
SCM | Supply Chain Management |
SIF | Serious Incident Frequency |
SOFR | Secured Overnight Financing Rate |
SSP | Share Savings Plan |
STEPS | Stated Policies Scenario |
Term | Definition |
SVOs | S\u00e6rlig Verdifulle og S\u00e5rbare Omr\u00e5der |
The Board | The Board of Directors |
The CG Policy | Corporate Governance Policy |
The Regulation | Norwegian Regulation on Guidelines and Report on Remuneration of Executive Personnel |
The S&S Committee | The Safety and Sustainability Committee |
TIR | Take Time \u2013 Involve \u2013 React |
TRIF | Total Recordable Injury Frequency |
TSR | Total Shareholder Return |
UNESCO | The United Nations Educational, Scientific and Cultural Organization |
UNGP | UN Guiding Principles on Business and Human Rights |
VOCIC | Volatile Organic Carbon Industry Collaboration |
VPS | Norwegian Central Securities Depository |
WACC | Weighted Average Cost of Capital |
WBC | The Whistleblowing Committee |
WEA | \"Norwegian Working Environment Act\" |
WEC | Working Environment Committee |
WEO | World Energy Outlook report |
WRI | Work-Related Illness |
Metric abbreviations | Definition/description |
boe | Barrels of oil equivalent |
kboepd | Thousands of barrels of oil equivalent per day |
mmboe | Millions of barrels of oil equivalents |
Sm3 | Standard cubic meters |
tCO2e | Tonnes CO2equivalents |
1P reserves | The quantities of petroleum which can be estimated with reasonable certainty to be commercially recoverable, also referred to as \u201cproved reserves\" |
2P reserves | Proved plus probable reserves consisting of 1P reserves plus those additional reserves, which are less likely to be recovered than 1P reserves |
2C reserves | The quantities of petroleum estimated to be potentially recoverable from known accumulations, also referred to as \u201ccontingent resources\u201d |
Sox | sulphur oxides |
CO | carbon monoxide |
NOX | nitrogen oxides |
nmVOC | non-methane volatile organic compounds |
1PD | 1P + proved developed reserves |
2PD | 2P + probable developed reserves |