Arctic Securities analyst Daniel Stenslet believes there is still room for further repricing of Vår Energi. The company is expected to report operating earnings (EBIT) of $980 million for the first quarter, which is nine percent below the current Bloomberg consensus.
The analyst revised his full-year 2024 operating profit estimate by 2% to $4.9 billion, still 10% higher than expected, after lowering gas price estimates for the second and third quarters. Weather patterns that are persistently warmer, wetter and windier than usual have led to a record high in gas inventories, leading to lower gas prices in Europe in the first quarter.
Share: Far Energy
Brokerage: SEB
Recommendation: Buy (Buy)
Course objectives: 42 (42)
For 2025, SEB revised its operating profit estimate downward by 10 percent to $5.5 billion, primarily due to an expected delay in the Balder-X project startup until the second quarter of 2025.
Stenslet reiterates his buy recommendation on the stock, maintaining the target price at NOK 42. He did not update his price target due to the limited impact of the revised estimates on the stock's value-adjusted estimates at the end of 2024.
The analyst notes that Vår Energi is trading at an expected free cash flow yield of around 19 percent for 2025. He also expects the company to be able to maintain its current dividend yield through 2030, assuming oil prices are above $80 per year. The price of a barrel of gas exceeds eight dollars per barrel. Million British thermal units (mmbtu).
On Friday, Vår Energi shares were trading for NOK 36.94, down 2.4 percent.
The summary was generated by the AI tool ChatGPT, and edited by Finansavisen journalists.
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