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79,400 barrels of oil equivalent per day (boepd), of which Kurdistan contributed
59,800 boepd, North Sea 16,300 boepd and West Africa 3,300 boepd.
At the end of the quarter, the Company held cash deposits of USD 943 million and
net cash of USD 158 million. The Board of Directors aims for sustainable
dividends. On the back of solid results, a strong balance sheet and outlook, the
Board has authorized a dividend payment of NOK 0.3125 per share in August 2024,
up 25 percent from prior quarterly distributions, pursuant to the authority
granted it by the Shareholders at the 2024 Annual General Meeting.
DNO increased spending in Kurdistan during the quarter to optimize production
from existing wells at the flagship Tawke license (DNO 75 percent and operator),
raising gross output from the Tawke and Peshkabir fields to an average of
83,500 boepd in the first half of the third quarter, up five percent from the
second quarter and nine percent from the first quarter of 2024. To help address
natural field decline, in addition to placing previously drilled wells into
production, DNO prepares to mobilize a rig to drill the first new well on the
license since early 2023.
On its other operated license in Kurdistan, Baeshiqa (DNO 64 percent), a 72-day
testing program has commenced on the newly drilled B-3 well.
“We are not realizing full value for our Kurdistan barrels with the shutdown of
the Iraq-Türkiye export pipeline, now twisted into a Gordian knot,” said DNO’s
Executive Chairman Bijan Mossavar-Rahmani. “Until the knot is cut, we will
compensate by spending more to produce more and by requiring payments in advance
to our international bank accounts,” he added.
Meanwhile, in the second quarter the Company announced a discovery in the North
Sea on the Cuvette prospect (DNO 20 percent), DNO’s eighth discovery since 2021
in the highly prolific area surrounding the Troll and Gjøa production hubs. The
other discoveries are Røver Nord, Kveikje, Ofelia, Røver Sør, Heisenberg, Carmen
and Kyrre, all close to infrastructure and with clear routes towards
commercialization.
Even as it works to bring new discoveries on stream, the Company is adding to
its current North Sea production through acquisitions. In the second quarter,
DNO completed the purchase of a 25 percent stake in UK’s Arran field and
announced the bolt-on acquisition of Norne area assets in Norway expected to
close in the third quarter of 2024.
To prepare for investments across its portfolio, including acquisitions, the
Company issued a new USD 400 million five-year bond with coupon rate of 9.25
percent to supplement an existing bond with a remaining balance of USD 350
million. The offering was significantly oversubscribed and achieved a lower
credit spread than previous DNO bonds, reflecting DNO’s strong financial
position and outlook as well as flawless bond track record of 18 issues over the
past 23 years.
A videoconference call with executive management is scheduled today at 14:00
(CET). To access the call, please visit http://www.dno.no/
(https://www.dno.no/).
Key figures
Q2 2024 Q1 2024 Full-Year 2023
Gross operated production (boepd) 79,783 76,310 46,500
Net production (boepd) 79,415 74,772 52,566
Revenues (USD million) 137 183 668
Operating profit/-loss (USD million) -3 61 218
Net profit/-loss (USD million) 35 17 19
Free cash flow (USD million) 16 44 -87
Net cash/-debt (USD million) 158 171 153
For further information, please contact:
Media: media@dno.no
Investors: investor.relations@dno.no
DNO ASA is a Norwegian oil and gas operator active in the Middle East, the North
Sea and West Africa. Founded in 1971 and listed on the Oslo Stock Exchange, the
Company holds stakes in onshore and offshore licenses at various stages of
exploration, development and production in the Kurdistan region of Iraq, Norway,
the United Kingdom, Côte d’Ivoire, Netherlands and Yemen.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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