DNO Hikes Dividends on Back of Transformative Acquisition, Posts Strong Second Quarter Results

Core Viewpoint - DNO ASA reported strong second quarter results with significant increases in revenue and operating profit, driven by production growth and the recent acquisition of Sval Energi Group AS [1][12]. Financial Performance - Revenue increased by 37% to USD 258 million from the prior quarter [1][12]. - Operating profit surged by 206% to USD 86 million [1][12]. - Net profit showed a loss of USD 7 million, an improvement from a loss of USD 4 million in the previous quarter [12]. Production and Operations - Net production rose by 10% to 92,600 barrels of oil equivalent per day (boepd) [2][12]. - Production sources included 56,100 boepd from the Kurdistan region, 33,300 boepd from the North Sea, and 3,200 boepd from West Africa [2]. - Following the Sval acquisition, North Sea production is projected to reach 80,000-85,000 boepd in the second half of 2025 [2]. Strategic Focus - The company aims to enhance cash value for shareholders through increased dividends while managing expenditures [4]. - DNO plans to reduce debt levels and costs [4]. - The company is also focused on divesting low-return projects and acquiring higher-return assets [8]. Exploration and Development - DNO has made three commercial discoveries in four exploration wells this year, totaling net mean resources of 34 million barrels of oil equivalent (MMboe) [7]. - The company has six ongoing tieback developments expected to contribute approximately 25,000 boepd net by the end of 2029 [5]. Financing Activities - DNO issued a USD 400 million hybrid bond in June and repaid over USD 600 million in reserve-based lending facilities [10]. - The company entered into a North Sea gas offtake agreement and a related USD 500 million financing facility [10]. Dividend Announcement - The Board of Directors authorized a dividend payment of NOK 0.375 per share, representing a 20% increase from prior distributions [11].