Norway's Vaar Energi Q1 operating profit lags forecast

OSLO (Reuters) -Oslo-listed oil and gas firm Vaar Energi reported on Wednesday a lower-than-expected operating profit for the first quarter, but said it would maintain its dividend level.

Vaar's earnings before interest and tax (EBIT) for the January-March quarter fell to $972 million from $1.05 billion a year earlier, lagging the average $1.04 billion forecast in a company-provided poll of 12 analysts.

"In the current uncertain market environment our business remains resilient, with low free cash flow break-even and a highly flexible investment program of which 70% is uncommitted," Vaar's CEO Nick Walker said in a statement.

Vaar said it would pay $300 million in dividend for the second quarter, maintaining its policy of returning to shareholders between 25% and 30% of cash flow from operations after tax for the full year.

The Norway-focused company, majority owned by Italy's Eni, eyes significant grow of its output thanks to the startup of production from new fields on the Norwegian continental shelf.

It expects petroleum production to rise to over 400,000 barrels of oil equivalent per day (boepd) in the fourth-quarter from 272,000 boepd in the first quarter.

Vaar's flagship Balder X project in the North Sea will come on stream at the end of the second-quarter, after several delays, the company confirmed on Wednesday.

(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)