S&P gives Var Energi BBB

S&P said it gave a BBB rating to Var Energi ASA with a stable outlook.

“Var Energi's cash flows continue to be boosted by the strong market conditions and exposure to oil and European gas. Gas contributes a relatively high share of revenue (gas production 35% and natural gas liquids 8%), so the strong market has enabled Var Energi to generate record operating cash flow–over $2 billion in the first quarter of 2022. This has lowered its debt to EBITDA to 0.6x, well below the company's target of 1.3x,” the agency said in a press release.

S&P said it estimates that Var Energi will have plenty of financial flexibility in the next 12-24 months and will maintain FFO to debt well above 45%.

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