DNO (DNO) Q4 2024 earnings summary

Executive summary

• 2024 revenues reached $667 million, with operational cash flow up nearly 50% year-over-year to $433 million.

• Net production averaged 77,300 boepd, with Kurdistan and North Sea driving a 50% year-over-year increase.

• Operating profit dropped to $6 million due to $146 million in non-cash impairments and higher exploration expenses.

• Ended 2024 with $899 million in cash and $99 million net cash, maintaining a strong balance sheet and sustainable dividends.

• Major acquisitions and new licenses in the North Sea and Norway position for future growth.

Financial highlights

• Full-year revenues were $666.8 million, stable year-over-year, with North Sea contributing $436 million and Kurdistan $231 million.

• Net loss for 2024 was $27 million, compared to a $19 million profit in 2023, mainly from impairment charges.

• Operational cash flow rose to $433 million, up from $295 million in 2023, aided by $64 million in positive working capital changes.

• $354 million invested, including $287 million in organic asset investments and $85 million in acquisitions.

• $103 million in dividends paid in 2024, up 11% from 2023.

Outlook and guidance

• 2025 operational spend projected to ramp up to $750 million, mainly for North Sea activity.

• Focus remains on low-cost production in Kurdistan, capital discipline, and North Sea growth.

• No specific production or free cash flow guidance for 2025 due to market uncertainties.

• Dividend program to be maintained, with potential for further growth if Kurdistan exports resume.

• Awarded 13 new licenses in Norway's 2024 APA round, including four operatorships.