DNO ASA Achieves Strong Financial Results
DNO ASA, a leading Norwegian oil and gas operator, has reported impressive financial outcomes for its latest quarter. This performance has marked a remarkable 24 percent revenue growth, reaching USD 170 million, alongside achieving an operating profit of USD 31 million. This is a significant turnaround from an operating loss of USD 3 million experienced in the previous quarter.
Production Breakdown and Regional Contributions
For the third quarter, DNO averaged net production of 77,200 barrels of oil equivalent per day (boepd). The contributions to this figure came primarily from Kurdistan with 63,200 boepd, followed by North Sea with 11,200 boepd and West Africa with 2,800 boepd. The Kurdistan region, in particular, saw an upward trend with production sold at higher local market prices. Additionally, payments were efficiently received in advance into the Company’s international bank accounts. A slight decline in North Sea production was noted due to ongoing maintenance work in the Arran and Norne fields.
Successful Appraisals and Future Developments
The Company has made strides in exploration, successfully completing its second appraisal well on the Heisenberg discovery in 2023. Heisenberg is noted as one of eight discoveries made by DNO in the exploration-rich areas near the Troll and Gjøa hubs offshore Norway. A final investment decision is anticipated by the end of 2025 for the first of these significant finds, with additional concept selections for other discoveries likely to occur around the same timeframe.
Continued Exploration in the North Sea
Active exploration efforts within the North Sea continue with the recent drilling initiatives on the Falstaff and Ringand projects. DNO is also expanding its offshore operational team based in Stavanger following the acquisition of operatorship at the Marulk field this past August.
Commentary from Leadership
Bijan Mossavar-Rahmani, Executive Chairman of DNO, emphasized the need for expedience in developing concepts for their Norwegian discoveries. "We are dedicated to collaborating with partners and nearby platform operators to reduce the timeline from discovery to actual production startup. Our goal is to significantly decrease that period by half," he explained.
Significant Production Advancements in Kurdistan
In Kurdistan, DNO's production remained robust. At the Tawke license where DNO holds a 75 percent stake, three previously drilled wells that were put on hold due to the past closure of the Iraq-Türkiye Pipeline were reactivated mid-year. This decision was in response to increasing demand from local traders. These revitalized wells, combined with well interventions, resulted in a six percent rise in gross production, reaching a total of 84,200 boepd in the third quarter.
Next Steps in Kurdistan Operations
Furthermore, on its other operated license in Kurdistan, Baeshiqa, where DNO also holds a controlling interest, the Company is currently reviewing the results from well testing programs to determine future actions.
Stable Financial Standing and Dividend Announcement
At the close of the third quarter, DNO reported impressive financial stability, with cash deposits totaling USD 919 million and net cash maintained at USD 134 million. In light of its strong balance sheet, the Board of Directors has confirmed a dividend payment of NOK 0.3125 per share, set for November, keeping quarterly distributions consistent with the previous quarter's payout.
For further inquiries, please reach out to:
Media: media@dno.no
Investors: investor.relations@dno.no
Frequently Asked Questions
What was DNO ASA's revenue in Q3 2024?
DNO ASA reported revenue of USD 170 million in the third quarter of 2024.
How has DNO's production changed in Kurdistan?
Production in Kurdistan increased to 84,200 boepd, boosted by new wells and workovers.
What are DNO's future plans in Norway?
DNO plans to finalize investment decisions on its discoveries by the end of 2025 and aims to speed up development processes.
What was the operating profit for DNO in Q3 2024?
DNO reported an operating profit of USD 31 million in the third quarter of 2024.
How much cash did DNO have at the end of Q3?
DNO had cash deposits of USD 919 million and net cash of USD 134 million by the conclusion of the third quarter.
