DNO Posts Solid Third Quarter Results; Launches Fast-Track Kjøttkake Tie-Back

Core Insights - DNO ASA reported record revenue of USD 547 million and operating profit of USD 222 million in Q3 2025, both more than double the previous quarter's figures [1] - Net production increased to 115,400 barrels of oil equivalent per day (boepd), with contributions from the North Sea, Kurdistan, and West Africa [1] Production and Development - DNO expects to further increase net production in Q4 2025, targeting North Sea production to approach 90,000 boepd and Kurdistan to approach 60,000 boepd [2] - The company is fast-tracking the Kjøttkake development, aiming for first oil in Q1 2028, which is notably quicker than typical timelines on the Norwegian Continental Shelf [3] - DNO has partnered with Aker BP for the Kjøttkake project, with operatorship to be transferred to Aker BP and reverting to DNO post-first production [4] Exploration and Discoveries - DNO's exploration success in Norway includes the Vidsyn discovery, contributing to a total of 34 million barrels of oil equivalent in net recoverable resources discovered in 2025 [7] - Three additional exploration wells are currently being drilled in 2025 [7] Kurdistan Operations - Gross production at the Tawke license averaged 46,600 boepd in Q3 2025, down 38% from the previous quarter due to drone strikes, but has since been restored to approximately 75,000 boepd [8] - Exports from Kurdistan resumed in late September 2025 after a two and a half year hiatus, with DNO selling entitlement oil to local buyers at prices in the low USD 30s per barrel [9] Financial Performance - Key financial figures for Q3 2025 include net profit of USD 20 million, free cash flow of USD 101 million, and net cash/debt of USD -808 million [14] - The Board of Directors has authorized a dividend payment of NOK 0.375 per share, representing NOK 1.50 per share on an annualized basis [12] Future Plans - Drilling at the Tawke and Peshkabir fields is set to restart by year-end 2025, with a target to increase gross operated production to 100,000 boepd [10] - DNO is finalizing financing structures for its North Sea oil and liquids production, enhancing liquidity and supporting field development plans [11]