DNO Opens Taps at Tawke; Reports Second Quarter 2023 Results - Seite 2

The Company’s Côte d’Ivoire assets, which were acquired last year, deliver stable production and further upside potential. A gas sales contract renegotiation with the government is ongoing to raise the price ceiling, allowing for increased investment in Block CI-27 (DNO nine percent). On nearby Block CI-12 (DNO eight percent) a rig has been secured for two exploration wells plus one optional well, to be drilled back-to-back commencing in the fourth quarter of 2023.

In the second quarter of 2023, net production across DNO’s portfolio hit the lowest level in 13 years at 14,400 barrels of oil equivalent per day (boepd), of which the North Sea contributed 10,800 boepd, West Africa 3,500 boepd and Kurdistan the balance. Driven by the Kurdistan export closure and a significant North Sea production cut from a shutdown of third-party facilities that has now ended, DNO reported a 78 percent quarter-on-quarter revenue drop to USD 58 million. Net loss amounted to USD 19 million, down from a net profit of USD 87 million in the previous quarter.

The balance sheet remains strong with an unchanged equity ratio of 50 percent as the Company exited the quarter with cash deposits of USD 743 million and net cash of USD 177 million. Given uncertain timing of pipeline export resumption and continued delays in payments by the Kurdistan Regional Government for previous oil sales, DNO has cut back new investment spend and staffing levels.

The Board of Directors has authorized dividend payment of NOK 0.25 per share to be made on or about 1 September 2023, maintaining the Company’s quarterly distribution program.

A videoconference call with executive management will follow today at 10:00 (CET). Please visit www.dno.no to access the call.

Key figures

	Q2 2023	Q1 2023	Full-Year 2022
Gross operated production (boepd)	65	94,720	107,637
Net production (boepd)	14,417	89,399	97,310
Revenues (USD million)	58	269	1,377
Operating profit/-loss (USD million)	-15	155	431
Net profit/-loss (USD million)	-19	87	385
Free cash flow (USD million)	-144	35	619
Net cash/-debt (USD million)	177	344	388