DNO (DNO) Q2 2025 earnings summary

Executive summary

• Completed USD 1.6 billion acquisition of Sval Energi, significantly expanding and diversifying North Sea operations, with only one month of Sval results included in Q2 figures.

• Revenue rose 37% to USD 258 million and operating profit surged to USD 86 million, driven by higher production and successful integration of new assets.

• Net production increased 10% to 92,600 boepd, with major contributions from Kurdistan, North Sea, and West Africa.

• Increased quarterly dividend by 20% to NOK 0.375 per share, reflecting confidence in future cash flows and growth trajectory.

• Faced operational disruptions in Kurdistan due to drone attacks, but resumed production and implemented enhanced security measures.

Financial highlights

• Q2 2025 revenue reached USD 258 million, up from USD 188 million in Q1 2025.

• Operating profit was USD 86 million, up from USD 28 million in Q1 2025.

• Net loss of USD 7.3 million in Q2, mainly due to higher finance and tax expenses.

• EBITDA/EBITDAX increased to USD 135–174.4 million, up from USD 100–108.7 million in Q1.

• Cash balance at end of Q2: USD 788 million, down due to acquisition and debt repayments.

Outlook and guidance

• Sval Energi will be fully integrated in Q3, expected to further boost all key financial and operational metrics.

• North Sea net production guidance for H2 is 80,000–85,000 boepd, with new tiebacks to add 7,000 boepd at peak.

• Plans to resume drilling in Kurdistan to restore production to pre-shutdown levels, contingent on security and equipment performance.

• Ongoing engagement with KRG regarding recovery of outstanding receivables and future export payments.