DNO ASA

Revenue was $761 million in Q2 2026, up 21% from Q1. Operating profit was $439 million versus $284 million in Q1. Net profit was $83 million, up 65% from Q1; year-to-date net profit was $134.1 million versus negative $10.9 million in H1 2025. Revenue year-to-date was almost $1.4 billion, described as tripling H1 2025. Cash at quarter-end was $550 million, up from $531 million at end-Q1. Operational cash flow was $639 million. Net debt ended at $553 million, down $238 million or 30% from the prior quarter. The company reduced drawn offtake financing by $221 million and had $98 million of Norwegian tax installments in Q2; it expects total NCS tax installments in H2 of around $320 million. The board declared NOK 0.375 per share and management raised 2026 production guidance to about 85,000 barrels of oil equivalent per day on average.

Bijan Mossavar-Rahmani said the quarter was among DNO’s strongest ever, highlighting that the result was especially notable because Kurdistan was shut in for most of the period. He emphasized that DNO remains committed to Kurdistan but repeatedly stressed that safety and security are the overriding priority and that production guidance there is not practical in the current environment. His tone was confident and strategic, framing the North Sea expansion as the reason DNO can withstand volatility in Kurdistan while continuing to invest there.

Birgitte Wendelbo Johansen focused on the strength of the financials: $761 million of revenue, $439 million of operating profit, and $83 million of net profit in Q2. She said cash rose to $550 million, operating cash flow was $639 million, and net debt fell to $553 million, mainly because the company reduced offtake financing by $221 million. She also flagged that Q2 included $98 million of Norwegian tax installments, with about $320 million expected in H2, and noted the board’s decision to pay NOK 0.375 per share after 17 consecutive quarters of dividends totaling $491 million plus $62 million in buybacks.

Analysts pressed management on Kurdistan production levels, local pricing, whether output could return to pre-shutdown levels, and the lack of 2027 North Sea guidance. Management declined to give near-term Kurdistan production numbers because of daily security volatility, said local sales prices are only in the mid-to-upper $30s and remain disconnected from global benchmarks, and reiterated that they hope to restore pre-shutdown production if conditions permit. On North Sea growth, management said it has raised 2026 guidance to 85,000 boe/d, sanctioned three subsea tiebacks in Q2, and still expects one more FID in 2026, while standing by the long-term 100,000 boe/d by 2030 ambition.