DNO DNO ASA Class A

DNO Reports Solid Third Quarter Results

DNO Reports Solid Third Quarter Results

Oslo, 7 November 2024 – DNO ASA, the Norwegian oil and gas operator, today reported a 24 percent increase in revenue to USD 170 million in the third quarter of 2024, with operating profit also higher at USD 31 million, up from an operating loss of USD 3 million in the previous quarter.

Third quarter net production averaged 77,200 barrels of oil equivalent per day (boepd), to which Kurdistan contributed 63,200 boepd, North Sea 11,200 boepd and West Africa 2,800 boepd. Kurdistan production was up and sold at higher prices in the local market with payments received in advance to the Company’s international bank accounts. North Sea production was down due to maintenance, primarily at Arran and Norne fields.

During the quarter, the Company completed the second successful appraisal well on the 2023 Heisenberg discovery. Heisenberg is one of eight discoveries DNO has made in the exploration hotspot close to the Troll and Gjøa hubs offshore Norway since 2021. A final investment decision is expected by yearend 2025 for the first of these finds to be developed, with concept selection for other discoveries also expected at about the same time.

In the North Sea, active exploration continues with the drilling of Falstaff (DNO 50 percent and operator) and Ringand (20 percent). Meanwhile, DNO is growing the offshore operating organization in Stavanger as it picked up operatorship of Marulk after closing of the Norne area acquisition in August.

“Agreeing on development concepts for our Norwegian discoveries with partners and importantly with nearby platform operators should be accelerated,” said DNO Executive Chairman Bijan Mossavar-Rahmani. “If we were operating these assets, we would work with partners to collapse time from discovery to production startup by half,” he added.

In Kurdistan, DNO continued to deliver strong production. At the Tawke license (DNO 75 percent and operator), three wells that were drilled but not completed due to the closure of the Iraq-Türkiye Pipeline last year were brought onstream midyear 2024 to meet demand from local traders. These new wells, together with well interventions such as workovers, helped increase gross production by six percent to 84,200 boepd in the third quarter.

On its other operated license in Kurdistan, Baeshiqa (DNO 64 percent and operator), the Company is reviewing results of well testing programs and considering next steps.

DNO exited the third quarter with cash deposits of USD 919 million and net cash of USD 134 million, essentially unchanged from the second quarter. Given the continuing strength of the balance sheet, the Board of Directors has authorized a dividend payment of NOK 0.3125 per share in November, maintaining quarterly distributions at the level of last quarter’s payout.

A videoconference call with executive management is scheduled today at 14:00 (CET). To access the call, please visit .



Key figures

 Q3 2024Q2 2024Full-Year 2023
Gross operated production (boepd)84,21279,78346,500
Net production (boepd)77,23879,41552,566
Revenues (USD million)170137668
Operating profit/-loss (USD million)31-3218
Net profit/-loss (USD million)203519
Free cash flow (USD million)516-87
Net cash/-debt (USD million)134158153



For further information, please contact:

Media: 

Investors: 

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.

Attachments



EN
07/11/2024

Underlying

To request access to management, click here to engage with our
partner Phoenix-IR's CorporateAccessNetwork.com

Reports on DNO ASA Class A

Steffen Evjen
  • Steffen Evjen

Weekly news, topics & discussion

In the past week, we published an update on Equinor; we expect lowered renewables targets and capex guidance at the upcoming Capital Markets Update to be overshadowed by limited will or capacity for attractive shareholder distributions beyond 2025. We see significant downside risk for the stock to trade in line with peers on 2026e total shareholder yields. In other news, Panoro Energy released its Q3 results; we consider the report fairly neutral. Finally, production at Johan Sverdrup is back to...

ABGSC Energy Research ... (+7)
  • ABGSC Energy Research
  • Åsne Holsen
  • Daniel Vårdal Haugland
  • Haakon Amundsen
  • John Olaisen
  • Oliver Dunvold
  • Stian Wibstad

Energy Morning - 20 November 2024

Brent spot: USD 73.0bbl, up 0.5/bbl from last OSE close.OSX: 77.3, down 1% since last OSE close.Borr (B): receives another suspension – not unexpected but a small negative.DNO (B): "good chance that a discovery has been made" on Falstaff, positive.PEN (B) Q3: Production now above 13kboe/d.API estim

Steffen Evjen
  • Steffen Evjen

Valuation update

In this note, we show updated valuation statistics for the E&P sector

Steffen Evjen
  • Steffen Evjen

US shale: limited revisions and colour on 2025 activity levels

Our Q3 survey of the US shale universe showed limited revisions to guidance for 2024, and we still expect muted 2024 production growth of ~4–5% YOY (+8% YOY in 2023). Our survey also suggests capex down ~2% YOY, as the companies continue to guide for flat activity. Limited colour was provided on 2025 activity levels and associated capex, which we will know more about in the Q4 results season. For Q3, our universe marginally underspent its cash flow, albeit with net debt continuing to build QOQ a...

 PRESS RELEASE

DNO Shares Traded Ex-Dividend

DNO Shares Traded Ex-Dividend Oslo, 14 November 2024 – DNO ASA, the Norwegian oil and gas operator, today announced that the Company’s shares will be traded ex-dividend effective 14 November 2024. A dividend payment of NOK 0.3125 per share will be made on or about 22 November 2024 to all shareholders of record as of 15 November 2024. – For further information, please contact: Media:  Investors:  – 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 onsh...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch