Operating Margin

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Price: 34.18 NOK -2.79% Market Closed

Market Cap: 85.3B NOK

4.4%

Declining

by 1.1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

4.4%

Operating Income

$3.3B

Revenue

$7.5B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

4.4%

Operating Income

kr3.3B

Revenue

$7.5B

Peer Comparison

Country		Company	Market Cap	Operating Margin
NO	V	Var Energi ASA OSE:VAR	85.3B NOK	Loading...
CN	C	CNOOC Ltd SSE:600938	870.4B CNY	Loading...
US		Conocophillips NYSE:COP	118.6B USD	Loading...
CA		Canadian Natural Resources Ltd TSX:CNQ	102.2B CAD	Loading...
PK	O	Oil and Gas Development Co Ltd LSE:37OC	59.6B USD	Loading...
US		EOG Resources Inc NYSE:EOG	57.5B USD	Loading...
US		Hess Corp NYSE:HES	46.1B USD	Loading...
US	P	Pioneer Natural Resources Co LSE:0KIX	46B USD	Loading...
US		Diamondback Energy Inc NASDAQ:FANG	43.2B USD	Loading...
US		EQT Corp NYSE:EQT	34B USD	Loading...
AU		Woodside Energy Group Ltd ASX:WDS	45.9B AUD	Loading...

Market Distribution

Min	-3 055 100%
30th Percentile	-3.7%
Median	1.8%
70th Percentile	6.8%
Max	784.1%

Other Profitability Ratios

Var Energi ASA
Glance View

Economic Moat

None

Market Cap

85.3B NOK

Industry

Energy

In the ever-evolving landscape of the global energy sector, Var Energi ASA stands out as a testament to the rich tradition and promising future of Norway's oil and gas industry. Born from the merger of Eni Norge and Point Resources in 2018, Var Energi has quickly carved out a significant niche for itself as one of the leading exploration and production companies on the Norwegian Continental Shelf. Leveraging decades of expertise, the company adeptly manages a diverse portfolio of assets spanning the entire value chain— from exploration and field development to production and decommissioning. With a strategic focus on innovation and sustainability, Var Energi aims to optimize hydrocarbon recovery from its mature fields while simultaneously exploring new opportunities both within and beyond Norway's borders. The company's revenue model hinges predominantly on the extraction and sale of oil and natural gas. Var Energi capitalizes on the abundant reserves found in its existing fields, applying advanced technological solutions to enhance recovery rates and extend the life of these assets. This operational efficiency is coupled with a sharp eye for cost management, ensuring healthy margins even amid fluctuating commodity prices. Moreover, Var Energi is not just resting on its laurels; it actively pursues new field developments and exploration projects that promise future growth. By maintaining a balanced mix of mature and emerging assets, the company positions itself to thrive in a world increasingly conscious of energy sustainability, thus securing its role as a crucial player in the transition toward cleaner energy sources while maximizing shareholder value.

View VAR Analysis

VAR Intrinsic Value

Undervaluation 68%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Var Energi ASA
OSE:VAR

Peer Comparison

Market Distribution

Other Profitability Ratios

Var Energi ASA
Glance View

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Var Energi ASA OSE:VAR