DNO ASA

DNO reported second-quarter revenue of $761 million, up 21% from Q1. Operating profit was $439 million, net profit was $83 million, and year-to-date revenue was almost $1.4 billion, tripling the first half of 2025. Cash at quarter-end was $550 million, net debt was $553 million, down $238 million or 30% from the prior quarter, and the board approved a dividend of NOK 0.375 per share. Looking ahead, management raised 2026 North Sea production guidance to about 85,000 barrels of oil equivalent per day and said it still expects to reach around 100,000 boe/d by 2030; on Kurdistan, they said production has restarted but gave no numeric quarterly forecast because security conditions remain highly uncertain.

Bijan Mossavar-Rahmani described the quarter as one of DNO’s strongest in its 55-year history, emphasizing resilience despite Kurdistan being shut in for most of the period. His message was that DNO can keep operating in Kurdistan because of its size, diversification, local relationships, and willingness to keep drilling and doing workovers when conditions allow. His tone was confident but cautious, repeatedly stressing that safety and security remain the top priority and that guidance on Kurdistan is not reliable given the volatile situation.

Birgitte Johansen highlighted the hard numbers behind the quarter: $761 million of revenue, $439 million of operating profit, and $83 million of net profit. She said cash was $550 million at quarter-end, operating cash flow was $639 million, and the company spent $202 million on asset investments plus $26 million on decommissioning, while reducing drawn offtake financing by $221 million. She also warned that Norway tax installments in the second half are expected to total around $320 million, which will pressure cash generation versus Q2.

Analysts pressed management on Kurdistan production levels, local pricing, whether the region could still reach prior targets, and the payment/export regime. Management declined to give current or forward Kurdistan production figures because output can change quickly with security conditions, said local sales remain in the mid- to high-$30s per barrel and are still below international pricing, and reiterated that the company prefers certain prepayment receipts over receivables risk. On the North Sea, management said 2026 production guidance is now 85,000 boe/d, three more tiebacks were sanctioned in Q2, and one more FID is planned for 2026.