DNO (DNO) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong financial and operational results, with record North Sea production and high oil and gas prices driving a 30% sequential revenue increase to USD 627 million and a 60% rise in operating profit to USD 284 million.

• Net profit reached USD 51 million, rebounding from a net loss in Q4 2025, while cash from operations was USD 383 million.

• Net production averaged 131,700 boepd, down 12% sequentially due to lower Kurdistan volumes, but North Sea output remained robust at 88,600 boepd.

• Kurdistan operations were temporarily halted for safety after regional conflict but partially resumed in April 2026; drilling and investment have resumed post-ceasefire.

• Strategic focus remains on accelerating North Sea production to 100,000 boepd by 2030, leveraging organic growth and targeted acquisitions.

Financial highlights

• Q1 2026 revenue reached USD 627 million, up from USD 482 million in Q4 2025, mainly due to higher prices and increased North Sea sales volumes.

• Operating profit rose 60% quarter-on-quarter to USD 284 million; net profit was USD 51 million, compared to a net loss in Q4 2025.

• Operational cash flow reached USD 383 million, up from USD 264 million in Q4 2025.

• Cash and cash equivalents at quarter-end were USD 531 million.

• Net debt reduced to USD 790 million; equity ratio at 21%.

Outlook and guidance

• North Sea production and operational spend guidance unchanged; Kurdistan guidance updated due to ongoing uncertainties.

• Expectation of lower production and investment in Kurdistan for 2026, but optimism for higher output upon restart.

• Multiple North Sea fields scheduled to come onstream between 2026 and 2029, with Symra starting production nine months ahead of schedule in April 2026.