• Revised 2024 production cost, capex guidance down
• Maintains fourth-quarter dividend at $270 million
• Aims to boost output to around 400,000 boed by end-2025

OSLO, Oct 22 (Reuters) - Oslo-listed Vaar Energi (VAR.OL) , opens new tab, majority-owned by Italy's Eni (ENI.MI) , opens new tab, on Tuesday reported a stronger than expected third-quarter operating profit, while guiding for lower capital expenditure and production costs in 2024 than previously seen.

Its earnings before interest and tax (EBIT) for the April-June quarter fell to $740 million from $907 million a year earlier, but exceeded the $702 million average forecast in a company-provided poll , opens new tab of 13 analysts.

"We're showing strong cost discipline, lowering capital spend and production cost guidance for the year, as we enter a more volatile price environment," CEO Nick Walker said in a statement.

Vaar now expects its production costs for the full year to be below $13 per barrel of oil equivalent (boe) compared to previous guidance of $13.5-$14.5 per boe.

It lowered its full-year capital spending estimate, excluding exploration and abandonment, to below $2.6 billion from $2.7 billion-$2.9 billion.

Vaar maintained a quarterly cash dividend of $270 million, or around $0.11 per share, for the fourth quarter.

The company confirmed its plan to increase production to around 400,000 barrels of oil equivalent per day (boed) by the end of 2025, up from 280,000-290,000 boed seen in 2024.

It plans to add some net 150,000 boed over the next three quarters, mainly from three new projects - Equinor-operated Johan Castberg, Halten East and Vaar's Balder X - coming on stream over the same period.

Vaar also said it had decided to invest $620 million in the Balder Phase V project that would add some net 30,000 boed for the company, helping to sustain production beyond 2025.

Vaar's Oslo-listed shares were expected to outperform the market by 1-2% on Tuesday due to better than expected results and its reduced cost guidance, DNB Markets analysts said in a note.

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https://www.reuters.com/business/energy/vaar-energi-q3-operating-profit-beats-expectations-2024-10-22/