Page 9 - EurOil Week 06 2022

EurOil INVESTMENT EurOil

Var Energi set for

February 16 IPO

NORWAY ITALY’S Eni and Norwegian private equity “free up new resources” to fund its energy tran-
group HitecVision have fixed February 16 as the sition plans. The company revealed it was con-
HitecVision is looking to date for an initial public offering (IPO) at their sidering the offering in November last year,
cash in on high oil and Var Energi upstream joint venture. explaining that the sale would help recognise
gas prices. The pair will offer shares in the Norwegian Var Energi’s value, which it said was “not prop-
producer at NOK28.00-31.50 per share, valu- erly recognised.” Eni will retain a majority stake
ing the entire company at NOK70-79bn ($7.7- in the producer following the sale.
8.7bn). Some 220mn existing shares will be HitecVision, meanwhile, is looking to cash
offered, with an additional 55mn available as an in on investments made during the previous oil
option. market downturn at a time when commodity
The IPO comes after an improvement in Var prices are high. The group has acquired positions
Energi’s performance in recent months on the in a number of North Sea players over the years,
back of high oil and gas prices. The company has often building up its portfolio by acquiring assets
also increased its dividend guidance for 2022, from international oil majors leaving the region.
based on a “continued supportive commod- Var Energi produced 247,000 barrels of oil
ity price environment” and strong generation equivalent in July-August of last year – the last
of cash flow. The company’s guidance is now previous for which data is available. Natural gas
$800mn for this year, up from a previous fore- accounted for 37% of the total. The company is
cast of $700mn. Its first-quarter dividend is set at targeting a growth to 350,000 boepd by the end
$225mn, up from $200mn previously. of 2025, on the back of new project launches
The IPO is part of a broader plan by Eni to including Balder X. ™
PERFORMANCE

BP profits soar in 2021

on high prices

UK BP has followed other European majors in sheet and grown returns. We’re delivering dis-
reporting record-high profits for 2021, while also tributions to shareholders with $4.15bn of buy-
BP primarily benefited announcing raised climate ambitions. backs announced and the dividend increase.
from the surge in gas Annual profit came to $12.85bn in 2021, And we’re investing in the future.”
prices in Europe, like its compared with a large loss in 2020, thanks to BP announced a dividend of $0.0546 per
peers. high oil and gas prices and increased produc- share for the final quarter of the year that will be
tion – factors that were partly offset by weather paid in March. And assuming oil trades on aver-
oil trading performance and the effect of higher age at $60 per barrel, BP anticipates buying back
energy costs on operations such as refining. $4bn in shares each year, and increasing divi-
Like its peers in Europe, BP primarily ben- dends annually up until 2025.
efited from the surge in gas prices in late 2021, BP also raised its climate ambitions,
supported by supply constraints, especially in announcing it would seek to raise the share of
Russia, and rebounding demand. capital expenditure that goes towards its “tran-
BP’s oil production and operations segment sition growth businesses” to 40% by 2030. The
performed best during the year, earning $10.3bn company also aims to halve emissions from its
in underlying replacement cost profit before operations by the end of the decade and achieve
interest and tax, compared with a $5.89bn loss a net-zero “full life cycle” emissions from the prod-
year earlier, while its gas and low carbon energy ucts it sells by 2050.
division generated $7.53bn during the year, up “Over the past two years we have set a new
from $689mn. Profits from its minority stake in purpose, direction and strategy ... and completed
Russian oil giant Rosneft grew to $2.72bn, up the largest reorganisation in our history,” Looney
from a mere $56mn in 2020. commented. “We enter 2022 with growing con-
The result shows BP is “performing while fidence. The past two years have reinforced our
transforming,” CEO Bernard Looney said in belief in opportunities that the energy transition
a statement. “We’ve strengthened the balance presents.” ™

Week 06 10•February•2022 www. NEWSBASE .com P9