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DNO ASA
Earnings Release • May 15, 2025
3580_rns_2025-05-15_470978cf-ddcf-4303-9bd4-3711308c840e.pdf
Earnings Release
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Key figures
| USD million | Q1 2025 | Quarters Q4 2024 |
Q1 2024 | Full-Year 2024 |
|---|---|---|---|---|
| Key financials | ||||
| Revenues | 187.6 | 176.6 | 182.7 | 666.8 |
| EBITDAX | 108.7 | 100.4 | 118.6 | 422.2 |
| EBITDA | 77.8 | 71.4 | 110.4 | 333.3 |
| Operating profit/loss | 28.0 | -81.9 | 60.6 | 6.1 |
| Net profit/loss | -3.6 | -98.4 | 16.8 | -27.1 |
| Free cash flow | -19.2 | -5.4 | 43.6 | 58.8 |
| Operational spend | 207.0 | 187.2 | 113.3 | 568.0 |
| Net cash/debt | 42.8 | 99.0 | 171.5 | 99.0 |
| Lifting costs (USD/boe) | 8.3 | 7.9 | 6.6 | 6.5 |
| Key operational data | ||||
| Gross operated production (boepd) | 90,945 | 80,765 | 76,310 | 80,280 |
| Net production (boepd) | 84,232 | 77,646 | 74,772 | 77,269 |
| Sales volume (boepd) | 35,680 | 34,513 | 38,214 | 33,918 |
For more information about key figures, see the section on alternative performance measures.
Q1 2025 highlights
- Revenue of USD 188 million and operating profit of USD 28 million
- Net production of 84,200 barrels of oil equivalent per day (boepd), up eight percent from the previous quarter
- Kurdistan contributed 61,600 boepd, North Sea 19,300 boepd and West Africa 3,400 boepd during the quarter
- Continued successful exploration with two discoveries offshore Norway in the quarter (Kjøttkake and Mistral) together adding recoverable resources of 26 million barrels of oil equivalent (MMboe) net to the Company
- Announced transformative USD 1.6 billion acquisition of Sval Energi Group AS in Norway in early March
- New USD 600 million bond, DNO's 20th successful bond issue in 24 years, of which USD 350 million was used to redeem the DNO04 bond in April
- Ended the quarter with cash of USD 1,473 million
- Board of Directors approved another dividend of NOK 0.3125 per share payable in June, representing NOK 1.25 per share on an annualized basis
Cover image: A production operator in activity at the DNO-operated Peshkabir field in Kurdistan
Operational review
Gross operated production
Gross production from the Company's operated licenses during the first quarter averaged 90,945 barrels of oil equivalent per day (boepd), up from 80,765 boepd in the previous quarter. In Kurdistan, gross production increased to an average of 82,081 barrels of oil per day (bopd) during the first quarter, representing a 11 percent increase from the previous quarter (74,163 bopd). The increase was driven by stable production with fewer disruptions. Operated production in the North Sea increased to an average of 8,864 barrels of oil per day (bopd) due to ramp up of production on the Trym field.
Net production during the first quarter stood at 84,232 barrels of oil equivalent per day (boepd), up from 77,646 boepd in the previous quarter. In Kurdistan, net production averaged 61,561 bopd, up from 55,620 bopd in the previous quarter, the North Sea averaged 19,296 boepd, up from 19,031 boepd in the previous quarter and the Company's West Africa gas asset offshore Côte d'Ivoire averaged 3,375 boepd, up from 2,994 boepd in the previous quarter. The increase in net production compared to the previous quarter was mainly driven by higher production from Kurdistan, attributed to stable operations.
Net entitlement (NE) production averaged 37,760 boepd during the first quarter, up from 36,456 boepd in the previous quarter.
Sales volume averaged 35,680 boepd during the first quarter, up from 34,513 boepd in the previous quarter. The increase in sales volume was mainly driven by higher volumes in Kurdistan. The net underlift position was 0.23 million barrels of oil equivalent (MMboe) as of end-Q1 (Q4 2024: 0.08 MMboe).
Gross operated production
| Quarters | Full-Year | |||
|---|---|---|---|---|
| boepd | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
| Kurdistan | 82,081 | 74,163 | 76,310 | 78,620 |
| North Sea | 8,864 | 6,602 | - | 1,659 |
| Total | 90,945 | 80,765 | 76,310 | 80,280 |
Table above shows gross operated production from the Group's operated licenses.
Net production
| Quarters | Full-Year | |||
|---|---|---|---|---|
| boepd | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
| Kurdistan | 61,561 | 55,620 | 57,232 | 58,965 |
| North Sea | 19,296 | 19,031 | 14,217 | 15,201 |
| West Africa | 3,375 | 2,994 | 3,323 | 3,103 |
| Total | 84,232 | 77,646 | 74,772 | 77,269 |
Net production is based on DNO's percentage ownership in the licenses. West Africa segment is equity accounted.
Net entitlement (NE) production
| Quarters | Full-Year | |||
|---|---|---|---|---|
| boepd | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
| Kurdistan | 18,464 | 17,424 | 20,503 | 18,172 |
| North Sea | 19,296 | 19,031 | 14,217 | 15,201 |
| Total | 37,760 | 36,456 | 34,721 | 33,373 |
NE production from the North Sea equals the segment's net production.
Sales volume
| boepd | Q1 2025 | Quarters Q4 2024 |
Q1 2024 | Full-Year 2024 |
|---|---|---|---|---|
| Kurdistan | 18,464 | 17,424 | 20,503 | 18,172 |
| North Sea | 17,216 | 17,088 | 17,710 | 15,746 |
| Total | 35,680 | 34,513 | 38,214 | 33,918 |
Sales volume reflect North Sea lifted volumes and NE production for Kurdistan.
Activity overview
Kurdistan region of Iraq
With uninterrupted operations, Kurdistan production rose 11 percent quarter-on-quarter.
Gross production from the DNO-operated Tawke license, containing the Tawke and Peshkabir fields averaged 82,081 bopd during the first quarter of 2025 (74,143 bopd in Q4 2024). The Tawke field contributed 29,304 bopd (27,864 bopd in Q4 2024) and the Peshkabir field contributed 52,778 bopd (46,279 bopd in Q4 2024) during this period.
Continuing strict capital discipline since the closure of the Iraq-Türkiye export pipeline, the Company stabilized, even raised, production from existing wells through rigless interventions. Output from similar reservoirs typically decline 15-20 percent per year.
DNO's share of oil production was sold at its Fish Khabur terminal to local buyers at USD 35 per barrel with payments made in advance.
DNO holds a 75 percent operated interest in the Tawke license with partner Genel Energy International Limited holding the remaining 25 percent.
At the DNO-operated Baeshiqa license, the Company works to minimize license running cost while determining its future work program.
DNO holds a 64 percent operated interest in the Baeshiqa license (80 percent paying interest) with partners being Turkish Energy Company (TEC) with a 16 percent interest (20 percent paying interest) and the KRG with a 20 percent carried interest.
Net production (bopd) per field in Kurdistan:
| bopd | Q1 2025 | Quarters Q4 2024 |
Q1 2024 | Full-Year 2024 |
|---|---|---|---|---|
| Tawke | 21,978 | 20,898 | 21,284 | 21,865 |
| Peshkabir | 39,583 | 34,709 | 35,948 | 37,097 |
| Baeshiqa | - | 13 | - | 3 |
| Total | 61,561 | 55,620 | 57,232 | 58,965 |
North Sea
Net production averaged 19,296 boepd in the North Sea segment during the first quarter of 2025 (19,031 boepd in Q4 2024), of which 15,311 boepd was in Norway and 3,985 boepd in the United Kingdom (UK) (13,581 boepd and 5,450 boepd in Q4 2024, respectively). In the first quarter, oil accounted for 45 percent of production, gas for 46 percent and natural gas liquids (NGL) for 10 percent. In the previous quarter, the split was 44 percent oil, 43 gas and 13 percent NGL.
In the first quarter, DNO announced the acquisition of Sval Energi Group AS in Norway, which is planned to be completed midyear 2025. Post-closing, DNO's North Sea proven and probable (2P) reserves will quadruple to 189 million barrels of oil equivalent (MMboe) and 2C resources climb to 246 MMboe from 144 MMboe, all on a yearend 2024 basis. North Sea production is also scheduled to quadruple to some 80,000 boepd. The acquisition turns the North Sea into the biggest contributor to DNO's net production with some 60 percent of the total and DNO will rank in top ten among producers in Norway.
The Company kept up its successful exploration pace offshore Norway with two discoveries in the last quarter, Kjøttkake (40 percent and operator) and Mistral (10 percent), together adding recoverable resources of 26 million barrels of oil equivalent (MMboe) net to the Company. A third exploration well drilled in the quarter, Horatio (20 percent), was dry.
A fourth 2025 exploration well, Vidsyn (7.5 percent), is scheduled to spud late in the second quarter. In addition, DNO recently secured a rig to drill the Page prospect in second half of 2025, following up on the 2024 Othello discovery within the same operated license, PL1086 (50 percent).
Meanwhile, DNO is taking part in four ongoing North Sea field development projects. Two other discoveries, namely Ofelia/Kyrre (10 percent) and Cuvette (20 percent) are nearing development decisions.
Net production (boepd) per field in the North Sea:
| Quarters | Full-Year | |||
|---|---|---|---|---|
| boepd | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
| Alve/Marulk | 5,612 | 4,926 | 5,342 | 4,762 |
| Ula area | 3,675 | 3,622 | 2,986 | 3,425 |
| Vilje | 627 | 608 | 777 | 716 |
| Brage | 2,463 | 2,511 | 3,036 | 2,697 |
| Trym | 1,354 | 696 | - | 175 |
| Norne | 562 | 301 | - | 76 |
| Urd/Skuld | 388 | 344 | - | 86 |
| Ringhorne E. | - | - | 342 | 210 |
| Fenja | 1,047 | 1,150 | 1,711 | 1,422 |
| Arran | 3,547 | 4,837 | - | 1,591 |
| Other | 20 | 37 | 23 | 42 |
| Total | 19,296 | 19,031 | 14,217 | 15,201 |
Ula area comprises Ula, Tambar, Oda and Blane (UK) fields.
West Africa
The net production from the Company's equity accounted investment, Côte d'Ivoire (West Africa segment), averaged 3,375 boepd in the first quarter of 2025 (2,994 boepd in Q4 2024).
| boepd | Q1 2025 | Quarters Q4 2024 |
Q1 2024 | Full-Year 2024 |
|---|---|---|---|---|
| Block CI-27 | 3,375 | 2,994 | 3,323 | 3,103 |
| Total | 3,375 | 2,994 | 3,323 | 3,103 |
Financial review
Revenues, operating result and cash
Revenues in the first quarter stood at USD 187.6 million, up 6 percent compared to the previous quarter (Q4 2024: USD 176.6 million). The main drivers for the revenue increase were higher realised prices in both Kurdistan and the North Sea.
| Quarters | Full-Year | |||
|---|---|---|---|---|
| USD million | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
| Kurdistan | 57.7 | 54.9 | 60.2 | 230.8 |
| North Sea | 129.9 | 121.8 | 122.5 | 436.0 |
| Total | 187.6 | 176.6 | 182.7 | 666.8 |
| Kurdistan Realized price USD/boe |
Q1 2025 | Quarters Q4 2024 |
Q1 2024 | Full-Year 2024 |
|---|---|---|---|---|
| Oil | 34.7 | 34.2 | 32.3 | 34.7 |
| Total | 34.7 | 34.2 | 32.3 | 34.7 |
| North Sea Realized price USD/boe |
Q1 2025 | Quarters Q4 2024 |
Q1 2024 | Full-Year 2024 |
|---|---|---|---|---|
| Oil | 77.9 | 73.3 | 87.2 | 83.5 |
| Gas | 91.5 | 85.9 | 56.0 | 68.8 |
| Natural gas liquids (NGL) | 49.8 | 45.9 | 52.0 | 46.7 |
| Total | 82.3 | 75.6 | 75.6 | 74.7 |
The Group reported an operating profit of USD 28.0 million in the first quarter, up from an operating loss of USD 81.9 million in the previous quarter, primarily due to no impairments in the first quarter of 2025.
Net financial expenses increased to USD 12.4 million (Q4 2024: USD 10.8 million) mainly due to lower capitalization of interest expense, partially offset by foreign exchange gains from the weakening of the USD against the NOK.
The Group ended the quarter with a cash balance of USD 1,472.8 million (Q4 2024: USD 899.0 million). The increase in cash was primarily driven by the issuance of a new USD 600 million bond during the quarter. Subsequent to the quarter end, the Company completed the full redemption of the DNO04 bond, totalling USD 350 million.
Cost of goods sold
In the first quarter, the cost of goods sold amounted to USD 121.1 million, up from USD 118.6 million in the previous quarter. The increase was due to higher lifting costs and depreciation in the North Sea.
Lifting costs
Lifting costs stood at USD 60.1 million in the first quarter, up from USD 54.5 million in the previous quarter. In Kurdistan, the average lifting cost was USD 4.3 per barrel, down from USD 5.1 per barrel in the previous quarter driven by lower well maintenance and higher production. In the North Sea, the average lifting cost stood at USD 21.0 per barrel of oil equivalent (boe), up from USD 16.2 per boe in the previous quarter driven by well maintenance on the Tambar license.
| USD million | Q1 2025 | Quarters Q4 2024 |
Q1 2024 | Full-Year 2024 |
|---|---|---|---|---|
| Kurdistan | 23.7 | 26.2 | 20.7 | 83.0 |
| North Sea | 36.4 | 28.3 | 22.5 | 93.2 |
| Total | 60.1 | 54.5 | 42.6 | 175.5 |
| (USD/boe) | Q1 2025 | Quarters Q4 2024 |
Q1 2024 | Full-Year 2024 |
|---|---|---|---|---|
| Kurdistan | 4.3 | 5.1 | 4.0 | 3.8 |
| North Sea | 21.0 | 16.2 | 17.4 | 16.7 |
| Average | 8.3 | 7.9 | 6.6 | 6.5 |
Depreciation, depletion and amortization (DD&A)
DD&A related to the Group's oil and gas production assets amounted to USD 49.7 million in the first quarter, up from USD 47.3 million in the previous quarter. The increase in DD&A was mainly driven by higher unit-of-production depreciation rates for certain fields in the North Sea.
| USD million | Q1 2025 | Quarters Q4 2024 |
Q1 2024 | Full-Year 2024 |
|---|---|---|---|---|
| Kurdistan | 25.4 | 28.0 | 32.6 | 116.1 |
| North Sea | 24.3 | 19.4 | 15.8 | 62.2 |
| Total | 49.7 | 47.3 | 48.4 | 178.2 |
| (USD/boe) | Q1 2025 | Quarters Q4 2024 |
Q1 2024 | Full-Year 2024 |
|---|---|---|---|---|
| Kurdistan | 15.3 | 17.5 | 17.5 | 17.5 |
| North Sea | 14.0 | 11.1 | 12.2 | 11.2 |
| Average | 14.6 | 14.1 | 15.3 | 14.6 |
Exploration costs expensed
Exploration costs expensed in the first quarter amounted to USD 30.8 million, up from USD 29.0 million in the previous quarter. The increase in exploration costs expensed was due to expensing of the Horatio dry well.
| USD million | Q1 2025 | Quarters Q4 2024 |
Q1 2024 | Full-Year 2024 |
|---|---|---|---|---|
| Kurdistan | - | - | - | - |
| North Sea | 30.8 | 29.0 | 8.2 | 88.9 |
| Total | 30.8 | 29.0 | 8.2 | 88.9 |
Capital expenditures
Capital expenditures stood at USD 113.1 million in the first quarter, of which USD 6.2 million were in Kurdistan and USD 104.9 million in the North Sea.
| Quarters | Full-Year | |||||
|---|---|---|---|---|---|---|
| USD million | Q1 2025 | Q4 2024 | Q1 2024 | 2024 | ||
| Kurdistan | 6.2 | 5.8 | 10.2 | 46.8 | ||
| North Sea | 104.9 | 90.9 | 43.9 | 239.3 | ||
| Other | 2.0 | 0.1 | 0.2 | 0.9 | ||
| Total | 113.1 | 96.8 | 54.3 | 287.0 |
Consolidated statements of comprehensive income
| Quarters | Full-Year | ||||
|---|---|---|---|---|---|
| (unaudited, in USD million) | Note | Q1 2025 | Q1 2024 | 2024 | |
| Revenues | 2,3 | 187.6 | 182.7 | 666.8 | |
| Lifting costs | -60.1 | -42.6 | -175.5 | ||
| Tariff and transportation expenses | -18.4 | -7.7 | -49.4 | ||
| Movement in overlift/underlift | 8.5 | -7.4 | 2.1 | ||
| Depreciation, depletion and amortization | -51.1 | -49.8 | -184.1 | ||
| Cost of goods sold | -121.1 | -107.5 | -406.9 | ||
| Gross profit | 66.5 | 75.2 | 259.9 | ||
| Share of profit/loss from Joint Venture | 2.3 | -0.4 | 3.3 | ||
| Other operating income/expenses | -0.2 | - | -1.6 | ||
| Administrative expenses | -11.1 | -6.1 | -23.5 | ||
| Impairment oil and gas assets | 7 | - | - | -146.0 | |
| Exploration expenses | 4 | -30.8 | -8.2 | -88.9 | |
| Gain on license transactions | 1.3 | - | 3.0 | ||
| Operating profit/loss | 28.0 | 60.6 | 6.1 | ||
| Financial income | 5 | 12.6 | 14.7 | 47.3 | |
| Financial expenses | 5,9,10 | -25.0 | -16.0 | -66.7 | |
| Profit/loss before income tax | 15.7 | 59.3 | -13.3 | ||
| Tax income/expense | 6 | -19.3 | -42.5 | -13.8 | |
| Net profit/loss | -3.6 | 16.8 | -27.1 | ||
| Currency translation differences | 17.8 | -14.6 | -25.8 | ||
| Other comprehensive income | 17.8 | -14.6 | -25.8 | ||
| Total comprehensive income, net of tax | 14.2 | 2.1 | -52.9 | ||
| Net profit/loss attributable to: | |||||
| Equity holders of the parent | -3.6 | 16.8 | -27.1 | ||
| Total comprehensive income attributable to: | |||||
| Equity holders of the parent | 14.2 | 2.1 | -52.9 | ||
| Earnings per share, basic (USD per share) | -0.00 | 0.02 | -0.03 | ||
| Earnings per share, diluted (USD per share) | -0.00 | 0.02 | -0.03 | ||
| Weighted average number of shares outstanding (millions) | 975.00 | 975.00 | 975.00 |
Consolidated statements of financial position
| ASSETS | At 31 Mar | At 31 Dec | |||
|---|---|---|---|---|---|
| (unaudited, in USD million) | Note | 2025 | 2024 | 2024 | |
| Non-current assets | |||||
| Deferred tax assets | 6 | 25.4 | - | 39.6 | |
| Goodwill | 7 | 109.0 | 40.9 | 102.1 | |
| Other intangible assets | 7 | 267.3 | 208.3 | 228.5 | |
| Property, plant and equipment | 7 | 1,174.3 | 1,096.9 | 1,109.4 | |
| Investment in Joint Venture | 45.7 | 63.2 | 48.8 | ||
| Other non-current receivables | 9 | 100.4 | 129.8 | 98.2 | |
| Tax receivables | 6 | 43.9 | - | - | |
| Total non-current assets | 1,766.0 | 1,539.1 | 1,626.6 | ||
| Current assets | |||||
| Inventories | 8 | 72.5 | 76.5 | 74.8 | |
| Trade and other receivables | 9 | 366.3 | 249.2 | 338.1 | |
| Tax receivables | 6 | 29.6 | - | 27.5 | |
| Cash and cash equivalents | 1,472.8 | 606.5 | 899.0 | ||
| Total current assets | 1,941.3 | 932.1 | 1,339.5 | ||
| TOTAL ASSETS | 3,707.2 | 2,471.2 | 2,966.1 | ||
| EQUITY AND LIABILITIES | At 31 Mar | At 31 Dec | |||
| (unaudited, in USD million) | Note | 2025 | 2024 | 2024 | |
| Equity | |||||
| Shareholders' equity | 1,067.0 | 1,213.7 | 1,080.0 | ||
| Total equity | 1,067.0 | 1,213.7 | 1,080.0 | ||
| Non-current liabilities | |||||
| Deferred tax liabilities | 6 | 324.3 | 202.9 | 257.2 | |
| Interest-bearing liabilities | 10 | 1,066.2 | 392.9 | 790.5 | |
| Provisions for other liabilities and charges | 11 | 518.1 | 390.8 | 484.5 | |
| Total non-current liabilities | 1,908.6 | 986.7 | 1,532.2 | ||
| Current liabilities | |||||
| Trade and other payables | 12 | 351.4 | 191.5 | 323.7 | |
| Income taxes payable | 6 | - | 24.1 | - | |
| Current interest-bearing liabilities | 10 | 346.9 | 35.0 | - | |
| Provisions for other liabilities and charges | 11 | 33.3 | 20.3 | 30.2 | |
| Total current liabilities | 731.6 | 270.8 | 353.9 | ||
| Total liabilities | 2,640.2 | 1,257.5 | 1,886.1 | ||
| TOTAL EQUITY AND LIABILITIES | 3,707.2 | 2,471.2 | 2,966.1 |
Consolidated cash flow statement
| Quarters | Full-Year | |||
|---|---|---|---|---|
| (unaudited, USD million) | Note | Q1 2025 | Q1 2024 | 2024 |
| Operating activities | ||||
| Profit/loss before income tax | 15.7 | 59.3 | -13.3 | |
| Adjustments to add/deduct non-cash items: | ||||
| Exploration cost previously capitalized carried to cost | 4 | 17.1 | 0.1 | 37.7 |
| Depreciation, depletion and amortization | 51.1 | 49.8 | 184.1 | |
| Impairment oil and gas assets | 7 | - | - | 146.0 |
| Loss/gain on PP&E | -1.3 | - | -3.0 | |
| Time value effects on trade receivables | 9 | -0.3 | - | -11.4 |
| Share of profit/loss from Joint Venture | -2.3 | 0.4 | -3.3 | |
| Amortization of borrowing issue costs | 10 | 0.9 | 0.9 | 3.8 |
| Accretion expense on ARO provisions | 6.3 | 4.7 | 20.4 | |
| Interest expense | 17.7 | 9.2 | 54.3 | |
| Interest income | -9.4 | -7.1 | -38.1 | |
| Other | -0.3 | -6.9 | -8.3 | |
| Change in working capital items and provisions: | ||||
| - Inventories | 8 | 2.3 | 1.4 | 6.0 |
| - Trade and other receivables | 9 | -31.6 | 16.2 | -46.1 |
| - Trade and other payables | 12 | 29.2 | -29.6 | 97.4 |
| - Provisions for other liabilities and charges | 11 | 5.1 | 1.6 | 6.9 |
| Cash generated from operations | 100.2 | 100.0 | 433.0 | |
| Net income taxes paid/tax refund received | - | - | -0.8 | |
| Interest received | 7.3 | 4.7 | 34.6 | |
| Interest paid | -17.4 | -10.5 | -53.7 | |
| Net cash from/used in operating activities | 90.1 | 94.2 | 413.0 | |
| Investing activities | ||||
| Purchases of intangible assets | -39.2 | -18.2 | -87.2 | |
| Purchases of tangible assets | -74.0 | -36.1 | -199.8 | |
| Payments for decommissioning | -1.7 | -0.7 | -4.9 | |
| Payments for license transactions | - | - | -84.8 | |
| Equity contribution into Joint Venture | -2.8 | -3.3 | -9.4 | |
| Dividends from Joint Venture | 8.2 | 7.7 | 31.8 | |
| Net cash from/used in investing activities | -109.3 | -50.5 | -354.2 | |
| Financing activities | ||||
| Proceeds from borrowings | 10 | 630.0 | - | 365.0 |
| Repayment of borrowings | 10 | - | -131.2 | -131.2 |
| Payment of debt issue costs | -7.8 | - | -5.6 | |
| Paid dividend | -27.4 | -23.1 | -102.5 | |
| Payments of lease liabilities | -0.6 | -0.6 | -2.5 | |
| Net cash from/used in financing activities | 594.2 | -154.9 | 123.2 | |
| Net increase/decrease in cash and cash equivalents | 575.0 | -111.3 | 182.1 | |
| Cash and cash equivalents at beginning of the period | 899.0 | 718.8 | 718.8 | |
| Exchange gain/losses on cash and cash equivalents | -1.2 | -1.1 | -1.9 | |
| Cash and cash equivalents at the end of the period | 1,472.8 | 606.5 | 899.0 | |
| Of which restricted cash | 19.1 | 15.2 | 17.5 |
Consolidated statement of changes in equity
| (unaudited, in USD million) | Share capital |
Share premium |
Other compre hensive income Currency translation differences |
Retained earnings |
Total equity |
|---|---|---|---|---|---|
| Total shareholders' equity as of 31 December 2023 | 32.8 | 343.6 | -39.9 | 898.3 | 1,234.8 |
| Currency translation differences | - | - | -14.6 | - | -14.6 |
| Other comprehensive income/loss | - | - | -14.6 | - | -14.6 |
| Profit/loss for the period | - | - | - | 16.8 | 16.8 |
| Total comprehensive income | - | - | -14.6 | 16.8 | 2.2 |
| Payment of dividend | - | - | - | -23.3 | -23.3 |
| Transactions with shareholders | - | - | - | -23.3 | -23.3 |
| Total shareholders' equity as of 31 March 2024 | 32.8 | 343.6 | -54.5 | 891.8 | 1,213.7 |
| (unaudited, in USD million) | Share capital |
Share premium |
Other compre hensive income Currency translation differences |
Retained earnings |
Total equity |
|---|---|---|---|---|---|
| Total shareholders' equity as of 31 December 2024 | 32.8 | 343.6 | -65.7 | 769.3 | 1,080.0 |
| Currency translation differences | - | - | 17.8 | - | 17.8 |
| Other comprehensive income/loss | - | - | 17.8 | - | 17.8 |
| Profit/loss for the period | - | - | - | -3.6 | -3.6 |
| Total comprehensive income | - | - | 17.8 | -3.6 | 14.2 |
| Payment of dividend | - | - | - | -27.2 | -27.2 |
| Transactions with shareholders | - | - | - | -27.2 | -27.2 |
| Total shareholders' equity as of 31 March 2025 | 32.8 | 343.6 | -47.9 | 738.5 | 1,067.0 |
Notes to the consolidated interim financial statements
Note 1 | Basis of preparation and accounting policies
Principal activities and corporate information
DNO ASA (the Company) and its subsidiaries (DNO or the Group) are engaged in international oil and gas exploration, development and production.
Basis of preparation
DNO ASA's consolidated interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting and IFRS standards issued and effective at date of reporting as adopted by the EU. These interim financial statements have also been prepared in accordance with Oslo Stock Exchange regulations.
The interim financial statements do not include all of the information and disclosures required in the annual financial statements and should be read in conjunction with the DNO ASA Annual Report and Accounts 2024.
The interim financial information for 2025 and 2024 is unaudited.
The interim financial statements have been prepared on a historical cost basis, with the following exception: liabilities related to share-based payments, derivative financial instruments and equity instruments are recognized at fair value. A detailed description of the accounting policies applied is included in the DNO ASA Annual Report and Accounts 2024.
The accounting policies adopted in the preparation of the interim financial statements are consistent with those followed in the preparation of DNO ASA Annual Report and Accounts 2024.
Due to rounding adjustments, some row and column totals may not exactly match the sum of the amounts shown.
Note 2 | Segment information
The Group reports the following three operating segments: Kurdistan, North Sea (which includes the Group's oil and gas activities in Norway and the UK) and West Africa (which represents the Group's equity accounted investment in Côte d'Ivoire). The segment assets/liabilities do not include internal receivables/liabilities.
| Total | Un | |||||||
|---|---|---|---|---|---|---|---|---|
| First quarter ending 31 March 2025 | West | reporting | allocated/ | Total | ||||
| USD million | Note | Kurdistan | North Sea | Africa | Other | segments eliminated | Group | |
| Income statement information | ||||||||
| Revenues | 3 | 57.7 | 129.9 | - | - | 187.6 | - | 187.6 |
| Lifting costs | -23.7 | -36.4 | - | - | -60.1 | - | -60.1 | |
| Tariff and transportation expenses | - | -18.4 | - | - | -18.4 | - | -18.4 | |
| Movement in overlift/underlift | - | 8.5 | - | - | 8.5 | - | 8.5 | |
| Depreciation, depletion and amortization | -25.6 | -24.7 | - | - | -50.3 | -0.8 | -51.1 | |
| Cost of goods sold | -49.3 | -71.0 | - | - | -120.3 | -0.8 | -121.1 | |
| Gross profit | 8.4 | 58.9 | - | - | 67.3 | -0.8 | 66.5 | |
| Share of profit/loss from Joint Venture | - | - | 2.3 | - | 2.3 | - | 2.3 | |
| Other operating income/expenses | -0.2 | - | - | - | -0.2 | - | -0.2 | |
| Administrative expenses | -0.3 | -3.3 | - | -0.1 | -3.8 | -7.3 | -11.1 | |
| Impairment oil and gas assets | 7 | - | - | - | - | - | - | - |
| Exploration expenses | 4 | - | -30.8 | - | - | -30.8 | - | -30.8 |
| Gain on license transactions | 11 | - | 1.3 | - | - | 1.3 | - | 1.3 |
| Operating profit/loss | 7.8 | 26.1 | 2.3 | -0.1 | 36.1 | -8.1 | 28.0 | |
| Financial income/expense (net) | 10 | 3.3 | -6.4 | - | 0.2 | -2.9 | -9.5 | -12.4 |
| Tax income/expense | 6 | - | -19.3 | - | - | -19.3 | - | -19.3 |
| Net profit/loss | 11.1 | 0.5 | 2.3 | 0.1 | 14.0 | -17.6 | -3.6 | |
| Financial position information | ||||||||
| Non-current assets | 645.2 | 1,063.7 | 45.7 | - | 1,754.6 | 11.3 | 1,766.0 | |
| Current assets | 250.7 | 293.8 | - | 1.2 | 545.7 | 1,395.6 | 1,941.3 | |
| Total assets | 895.8 | 1,357.6 | 45.7 | 1.2 | 2,300.3 | 1,406.9 | 3,707.2 | |
| Non-current liabilities | 71.3 | 835.5 | - | - | 906.8 | 1,001.8 | 1,908.6 | |
| Current liabilities | 149.4 | 198.5 | - | 7.8 | 355.7 | 375.9 | 731.6 | |
| Total liabilities | 220.7 | 1,034.0 | - | 7.8 | 1,262.5 | 1,377.7 | 2,640.2 |
Note 2 | Segment information
| West reporting allocated/ First quarter ending 31 March 2024 USD million Note Kurdistan North Sea Africa Other segment eliminated Income statement information Revenues 3 60.2 122.5 - - 182.7 - 182.7 Lifting costs -20.7 -22.5 - - -43.2 0.6 -42.6 Tariff and transportation expenses - -7.7 - - -7.7 - -7.7 Movement in overlift/underlift - -7.4 - - -7.4 - -7.4 Depreciation, depletion and amortization -32.7 -16.3 - - -49.0 -0.8 -49.8 Cost of goods sold -53.4 -53.9 - - -107.2 -0.2 -107.5 Gross profit 6.8 68.6 - - 75.4 -0.2 75.2 Share of profit/loss from Joint Venture - - -0.4 - -0.4 - -0.4 Other operating income/expenses - - - - - - - Administrative expenses -0.1 -1.7 - -0.6 -2.4 -3.7 -6.1 Impairment oil and gas assets 7 - - - - - - - Exploration expenses 4 - -8.2 - - -8.2 - -8.2 Gain on license transactions - - - - - - - Operating profit/loss 6.7 58.8 -0.4 -0.6 64.5 -3.9 60.6 Financial income/expense (net) 10 -2.5 2.1 0.3 0.1 - -1.3 -1.3 Tax income/expense 6 - -42.5 - - -42.5 - -42.5 Net profit/loss 4.2 18.3 -0.0 -0.5 22.0 -5.3 16.8 Financial position information Non-current assets 832.6 629.8 63.2 - 1,525.6 13.5 1,539.1 Current assets 230.2 319.2 - 1.6 550.9 381.2 932.1 Total assets 1,062.7 949.0 63.2 1.6 2,076.5 394.7 2,471.2 Non-current liabilities 70.5 505.9 - - 576.4 410.3 986.7 Current liabilities 83.9 164.5 - 7.9 256.3 14.5 270.8 |
Total | Un | ||||||
|---|---|---|---|---|---|---|---|---|
| Total | ||||||||
| Group | ||||||||
| Total liabilities | 154.4 | 670.5 | - | 7.9 | 832.7 | 424.8 | 1,257.5 |
Note 3 | Revenues
| Quarters | Full-Year | ||
|---|---|---|---|
| USD million | Q1 2025 | Q1 2024 | 2024 |
| Sale of oil | 105.2 | 150.0 | 496.0 |
| Sale of gas | 72.8 | 24.9 | 138.5 |
| Sale of natural gas liquids (NGL) | 7.2 | 7.1 | 26.9 |
| Tariff income | 2.4 | 0.6 | 5.4 |
| Total revenues from contracts with customers | 187.6 | 182.7 | 666.8 |
| Sale of oil (bopd) | 25,240 | 31,822 | 26,852 |
| Sale of gas (boepd) | 8,840 | 4,885 | 5,496 |
| Sale of natural gas liquids (NGL) (boepd) | 1,601 | 1,508 | 1,571 |
| Total sales volume (boepd) | 35,680 | 38,214 | 33,918 |
Note 4 | Exploration expenses
| Quarters | Full-Year | ||
|---|---|---|---|
| USD million | Q1 2025 | Q1 2024 | 2024 |
| Exploration expenses (G&G and field surveys) | -4.8 | -3.6 | -16.5 |
| Seismic costs | -4.2 | - | -16.5 |
| Exploration cost capitalized in previous years carried to cost | -2.6 | - | -0.8 |
| Exploration costs capitalized this year carried to cost | -14.6 | -0.1 | -36.8 |
| Other exploration cost expensed | -4.7 | -4.5 | -18.3 |
| Total exploration expenses | -30.8 | -8.2 | -88.9 |
Exploration expenses relate to North Sea.
Note 5 | Financial income and financial expenses
| Quarters | Full-Year | ||
|---|---|---|---|
| USD million | Q1 2025 | Q1 2024 | 2024 |
| Interest income | 9.4 | 7.1 | 38.1 |
| Currency exchange gains recognized in the income statement (net) | 3.2 | 7.5 | 9.2 |
| Financial income | 12.6 | 14.7 | 47.3 |
| Interest expenses | -17.7 | -9.2 | -54.3 |
| Capitalized interest | - | - | 4.1 |
| Time value effect trade debtors | 0.3 | - | 11.6 |
| Amortization of borrowing costs | -0.9 | -0.8 | -3.8 |
| Accretion expense ARO | -6.3 | -4.7 | -20.4 |
| Other financial expenses | -0.4 | -1.2 | -3.9 |
| Financial expenses | -25.0 | -16.0 | -66.7 |
| Net financial income/expenses | -12.4 | -1.3 | -19.4 |
Note 6 | Income taxes
| Quarters | Full-Year | ||
|---|---|---|---|
| USD million | Q1 2025 | Q1 2024 | 2024 |
| Tax income/expense | |||
| Change in deferred taxes | -60.2 | -22.3 | -57.9 |
| Income tax receivable/payable | 40.9 | -20.2 | 44.1 |
| Total tax income/expense | -19.3 | -42.5 | -13.8 |
| At 31 Mar | At 31 Dec | ||
|---|---|---|---|
| USD million | 2025 | 2024 | 2024 |
| Income tax receivable/payable | |||
| Tax receivables (non-current) | 43.9 | - | - |
| Tax receivables (current) | 29.6 | - | 27.5 |
| Income taxes payable | - | -24.1 | - |
| Net tax receivable/payable | 73.5 | -24.1 | 27.5 |
| Deferred tax assets/liabilities | |||
| Deferred tax assets | 25.4 | - | 39.6 |
| Deferred tax liabilities | -324.3 | -202.9 | -257.2 |
| Net deferred tax assets/liabilities | -298.9 | -202.9 | -217.6 |
The tax balances relate to the activity on the Norwegian Continental Shelf and the UK Continental Shelf.
For tax impacts due to acquisitions, see Note ##N_BC.
Under the terms of the Production Sharing Contracts (PSC) in the Kurdistan region of Iraq, the Company's subsidiary, DNO Iraq AS, is not required to pay any corporate income taxes. The share of profit oil of which the government is entitled to is deemed to include a portion representing the notional corporate income tax paid by the government on behalf of DNO. Current and deferred taxation arising from such notional corporate income tax is not calculated for Kurdistan as there is uncertainty related to the tax laws of the Kurdistan Regional Government (KRG) and there is currently no well-established tax regime for international oil companies.
Profits/losses by Norwegian companies from upstream activities outside of Norway are not taxable/deductible in Norway in accordance with the General Tax Act, section 2-39. Under these rules, only certain financial income and expenses are taxable in Norway.
Note 7 | Intangible assets/ Property, plant and equipment (PP&E)
Additions through business combinations and disposals during the year are explained in Note ##N_BC.
| Quarters | Full-Year | ||
|---|---|---|---|
| USD million | Q1 2025 | Q1 2024 | 2024 |
| Additions of intangible assets | 39.2 | 18.2 | 87.2 |
| Additions of goodwill and intangible assets through business combinations | - | - | 113.8 |
| Disposal of goodwill and intangible assets | - | - | -1.1 |
| Additions of tangible assets | 74.0 | 37.0 | 226.4 |
| Additions of tangible assets through business combination | - | - | 112.5 |
| Disposal of tangible assets | -0.8 | - | -30.9 |
| Additions of right-of-use (RoU) assets | - | - | 0.3 |
| Additions of RoU assets through business combinations | - | - | - |
| Depreciation, depletion and amortization | -51.1 | -49.8 | -184.1 |
| Impairment oil and gas assets/goodwill | - | - | -146.0 |
| Exploration cost previously capitalized carried to cost (Note 4) | -17.1 | -0.1 | -37.7 |
Additions of intangible assets are related to exploration and evaluation expenditures (successful efforts method), license interests and administrative software. Additions of tangible assets are related to oil and gas development and production assets including changes in estimate of asset retirement, and other tangible assets. Additions of right-of-use (RoU) assets are related to lease contracts under IFRS 16 Leases, see Note 11.
Note 8 | Inventory
| At 31 Mar | At 31 Dec | |||
|---|---|---|---|---|
| USD million | 2025 | 2024 | 2024 | |
| Drilling equipment, spare parts and consumables | 92.3 | 93.9 | 94.3 | |
| Provision for obsolete inventory | -19.8 | -17.4 | -19.4 | |
| Total inventory | 72.5 | 76.5 | 74.8 |
Book value of inventory as of the reporting date relates to Kurdistan (USD 54.4 million) and the North Sea (USD 18.1 million).
Note 9 | Other non-current receivables/ Trade Receivables
| At 31 Mar | At 31 Dec | ||
|---|---|---|---|
| USD million | 2025 | 2024 | 2024 |
| Trade debtors (non-current portion) | 100.4 | 129.8 | 98.2 |
| Total other non-current receivables | 100.4 | 129.8 | 98.2 |
| Trade debtors | 177.2 | 148.9 | 185.0 |
| Underlift | 16.4 | 6.1 | 7.1 |
| Other short-term receivables | 172.7 | 94.2 | 146.1 |
| Total trade and other receivables | 366.3 | 249.2 | 338.1 |
As of 31 March 2025, the Company was owed a total of USD 296.5 million, excluding any interest, by the KRG mainly related to sales of DNO's entitlement share of oil to the KRG for the months October 2022 through March 2023 plus part of the amount invoiced for oil sold to the KRG in September 2022. These receivables are past due. During the first quarter of 2025, DNO recognized that USD 1.5 million of these arrears had been settled by way of offsetting against payables due to the KRG. The Company continues to engage with the KRG regarding collection of the arrears and expects that it will recover the full invoiced amount as has occurred in the past, but the timing of recovery is uncertain. Due to accounting requirements to incorporate the time value of money, the Company compared the book value of the KRG arrears with the present value of estimated future cash flows, resulting in a cumulative USD 32.4 million reduction of the book value, USD 0.3 million lower than the previous quarter. Moreover, the classification of the receivables (current/ non-current portion) was updated accordingly.
The underlift receivable as of the reporting date relates to North Sea underlifted volumes. Other short-term receivables mainly relate to items of working capital in licenses in Kurdistan and the North Sea and accrual for earned income not invoiced in the North Sea.
Other short-term receivables include a deposit of USD 22.5 million paid by DNO to the seller following the 7 March 2025 announcement that it had entered into an agreement to acquire Sval Energi Group AS.
Note 10 | Interest-bearing liabilities
Interest-bearing liabilities
| Facility | At 31 Mar | ||||||
|---|---|---|---|---|---|---|---|
| USD million | Ticker | currency | Interest | Maturity | 2025 | 2024 | 2024 |
| Non-current | |||||||
| Bond loan (ISIN NO0011088593) | DNO04 | USD | 7.875 % | 09/09/26 | - | 400.0 | 350.0 |
| Bond loan (ISIN NO0013243766) | DNO05 | USD | 9.250 % | 04/06/29 | 400.0 | - | 400.0 |
| Bond loan (ISIN NO0013511113) | TBD | USD | 8.500 % | 27/03/30 | 600.0 | - | - |
| Capitalized borrowing issue costs | -13.8 | -7.1 | -9.5 | ||||
| Reserve based lending facility | USD | see below | see below | 80.0 | - | 50.0 | |
| Total non-current interest-bearing liabilities | 1,066.2 | 392.9 | 790.5 | ||||
| Current | |||||||
| Bond loan (ISIN NO0011088593) | DNO04 | USD | 7.875 % | 09/09/26 | 350.0 | - | - |
| Capitalized borrowing issue costs | -3.1 | - | - | ||||
| Reserve based lending facility | USD | see below | see below | - | 35.0 | - | |
| Total current interest-bearing liabilities | 346.9 | 35.0 | - | ||||
| Total interest-bearing liabilities | 1,413.1 | 427.9 | 790.5 |
Changes in liabilities arising from financing activities split on cash and non-cash changes
| At 1 Jan | Cash | Non-cash changes | At 31 Mar | |||
|---|---|---|---|---|---|---|
| USD million | 2025 | flows Amortization | Currency | Reclassification | 2025 | |
| Bond loans | 750.0 | 600.0 | - | - | -350.0 | 1,000.0 |
| Bond loans (current) | - | - | - | - | 350.0 | 350.0 |
| Borrowing issue costs | -9.5 | -7.8 | 0.4 | - | - | -16.9 |
| Reserve based lending facility | 50.0 | 30.0 | - | - | - | 80.0 |
| Total | 790.5 | 622.2 | 0.4 | - | - | 1,413.1 |
| At 1 Jan | Cash | Non-cash changes | At 31 Mar | |||
|---|---|---|---|---|---|---|
| USD million | 2024 | flows Amortization | Currency | Reclassification | 2024 | |
| Bond loans | 400.0 | - | - | - | - | 400.0 |
| Bond loans (current) | 131.2 | -131.2 | - | - | - | - |
| Borrowing issue costs | -8.0 | - | 0.9 | - | - | -7.1 |
| Reserve based lending facility (current) | 35.0 | - | - | - | - | 35.0 |
| Total | 558.2 | -131.2 | 0.9 | - | - | 427.9 |
On 14 March 2025, DNO ASA completed the placement of a new USD 600 million, five-year senior unsecured bond issued at 100 percent at par with a coupon rate of 8.50 percent. Subsequently, on 27 March 2025, the Company exercised its call option on the DNO04 bond, redeeming USD 350 million at a price of 102.3625 percent of par plus accrued interest. The redemption was completed on 10 April 2025. The financial covenants of the bonds issued by DNO ASA require minimum USD 40 million of liquidity, and that the Group maintains either an equity ratio of 30 percent or a total equity of a minimum of USD 600 million.
As of 31 March 2025, the Group had a reserve-based lending (RBL) facility for its Norwegian and UK production licenses with a total facility limit of USD 190 million which is available for both debt and issuance of letters of credit. The borrowing base amount of the facility from 1 January 2025 is USD 150 million. Amount utilized as of the reporting date is disclosed in the table above. In addition, as of 31 March 2025, USD 18.7 million is utilized in respect of letters of credit.
For additional information about the Group's interest-bearing liabilities, refer to the DNO ASA Annual Report and Accounts 2024.
Note 11 | Provisions for other liabilities and charges/ Lease liabilities
| At 31 Mar | At 31 Dec | |||
|---|---|---|---|---|
| USD million | 2025 | 2024 | 2024 | |
| Non-current | ||||
| Asset retirement obligations (ARO) | 501.5 | 371.1 | 467.9 | |
| Other long-term provisions and charges | 7.2 | 7.1 | 6.9 | |
| Lease liabilities | 9.5 | 12.6 | 9.7 | |
| Total non-current provisions for other liabilities and charges | 518.1 | 390.8 | 484.5 | |
| Current | ||||
| Asset retirement obligations (ARO) | 12.5 | 9.5 | 12.9 | |
| Other provisions and charges | 17.7 | 7.3 | 14.2 | |
| Current lease liabilities | 3.2 | 3.4 | 3.1 | |
| Total current provisions for other liabilities and charges | 33.3 | 20.3 | 30.2 | |
| Total provisions for other liabilities and charges | 551.5 | 411.1 | 514.6 |
Asset retirement obligations
The provisions for ARO are based on the present value of estimated future cost of decommissioning oil and gas assets in Kurdistan and the North Sea. The discount rates before tax applied were between 5.1 percent and 5.3 percent.
Non-cancellable lease commitments
The recognized lease liabilities in the balance sheet are mainly related to office rent. The identified lease liabilities have no significant impact on the Group's financing, loan covenants or dividend policy. The Group does not have any residual value guarantees. Extension options are included in the lease liability when, based on the management's judgement, it is reasonably certain that an extension will be exercised. Non-lease components are not included as part of the lease liabilities.
Undiscounted lease liabilities and maturity of cash outflows (non-cancellable):
| At 31 Mar | At 31 Dec | |||
|---|---|---|---|---|
| USD million | 2025 | 2024 | 2024 | |
| Within one year | 4.0 | 4.8 | 4.0 | |
| Two to five years | 8.7 | 10.5 | 8.7 | |
| After five years | 3.2 | 4.6 | 3.2 | |
| Total undiscounted lease liabilities end of the period | 15.9 | 19.9 | 15.9 |
The table above summarizes the Group's maturity profile of the lease liabilities based on contractual undiscounted payments.
Note 12 | Trade and other payables
| At 31 Mar | At 31 Dec | ||
|---|---|---|---|
| USD million | 2025 | 2024 | 2024 |
| Trade payables | 83.2 | 51.5 | 84.5 |
| Public duties payable | 5.9 | 4.2 | 4.0 |
| Prepayments from customers | 16.3 | 1.8 | 4.7 |
| Overlift and other adjustments | 104.1 | 28.9 | 103.7 |
| Other accrued expenses | 141.8 | 105.1 | 126.8 |
| Total trade and other payables | 351.4 | 191.5 | 323.7 |
Trade payables are non-interest bearing and normally settled within 30 days.
Trade payables and other accrued expenses include items of working capital related to participation in oil and gas licenses in Kurdistan and the North Sea, and prepayment from customers related to oil sales in the North Sea. The overlift and other adjustments relate to North Sea overlifted volumes, valued at production cost including depreciation, and other lifting related adjustments in Kurdistan.
Note 13 | Subsequent events after the reporting date
Redemption of DNO04 bond
On 10 April 2025, the Company completed the full redemption of the DNO04 bond, following the exercise of its call option on 27 March 2025. A total of USD 350 million was redeemed at 102.3625 percent of par value, plus accrued interest.
Alternative performance measures
DNO discloses alternative performance measures (APMs) as a supplement to the Group's financial statements prepared based on issued guidelines from the European Securities and Markets Authority (ESMA). The Company believes that the APMs provide useful supplemental information to management, investors, securities analysts and other stakeholders and are meant to provide an enhanced insight into the financial development of DNO's business operations, financing and future prospects and to improve comparability between periods. Reconciliations of relevant APMs, definitions and explanations of the APMs are provided below.
EBITDA
| Quarters | Full-Year | ||
|---|---|---|---|
| USD million | Q1 2025 | Q1 2024 | 2024 |
| Revenues | 187.6 | 182.7 | 666.8 |
| Lifting costs | -60.1 | -42.6 | -175.5 |
| Tariff and transportation | -18.4 | -7.7 | -49.4 |
| Movement in overlift/underlift | 8.5 | -7.4 | 2.1 |
| Share of profit/loss from Joint Venture | 2.3 | -0.4 | 3.3 |
| Exploration expenses | -30.8 | -8.2 | -88.9 |
| Administrative expenses | -11.1 | -6.1 | -23.5 |
| Other operating income/expenses | -0.2 | - | -1.6 |
| EBITDA | 77.8 | 110.4 | 333.3 |
EBITDAX
| USD million | Q1 2025 | Q1 2024 | 2024 |
|---|---|---|---|
| EBITDA | 77.8 | 110.4 | 333.3 |
| Exploration expenses | 30.8 | 8.2 | 88.9 |
| EBITDAX | 108.7 | 118.6 | 422.2 |
| Lifting costs | |||
|---|---|---|---|
| Q1 2025 | Q1 2024 | 2024 | |
| Lifting costs (USD million) | -60.1 | -42.6 | -175.5 |
| Net production (MMboe)* | 7.3 | 6.5 | 27.1 |
| Lifting costs (USD/boe) | 8.3 | 6.6 | 6.5 |
| * For accounting purposes, the net production from equity accounted investments is excluded. Capital expenditures |
|||
| Q1 2025 | Q1 2024 | 2024 | |
| Purchases of intangible assets | -39.2 | -18.2 | -87.2 |
| Purchases of tangible assets* | -74.0 | -36.1 | -199.8 |
| Capital expenditures | -113.1 | -54.3 | -287.0 |
* Excludes estimate changes on asset retirement obligations.
Alternative performance measures
Operational spend
| Quarters | Full-Year | ||
|---|---|---|---|
| USD million | Q1 2025 | Q1 2024 | 2024 |
| Lifting costs | -60.1 | -42.6 | -175.5 |
| Tariff and transportation expenses | -18.4 | -7.7 | -49.4 |
| Exploration expenses | -30.8 | -8.2 | -88.9 |
| Exploration cost previously capitalized carried to cost (Note 4) | 17.1 | 0.1 | 37.7 |
| Purchases of intangible assets | -39.2 | -18.2 | -87.2 |
| Purchases of tangible assets | -74.0 | -36.1 | -199.8 |
| Payments for decommissioning | -1.7 | -0.7 | -4.9 |
| Operational spend | -207.0 | -113.3 | -568.0 |
Free cash flow
| USD million | Q1 2025 | Q1 2024 | 2024 |
|---|---|---|---|
| Net cash from/used in operating activities | 90.1 | 94.2 | 413.0 |
| Capital expenditures | -113.1 | -54.3 | -287.0 |
| Payments from license transactions | - | - | -84.8 |
| Payments for decommissioning | -1.7 | -0.7 | -4.9 |
| Equity contribution into Joint Venture | -2.8 | -3.3 | -9.4 |
| Dividends from Joint Venture | 8.2 | 7.7 | 31.8 |
| Free cash flow | -19.2 | 43.6 | 58.8 |
Equity
| USD | Q1 2025 | Q1 2024 | 2024 |
|---|---|---|---|
| Equity | 1,067.0 | 1,213.7 | 1,080.0 |
| Total assets | 3,707.2 | 2,471.2 | 2,966.1 |
| Equity ratio | 28.8% | 49.1% | 36.4% |
| Net debt USD million |
Q1 2025 | Q1 2024 | 2024 |
| Cash and cash equivalents (including restricted cash) | 1,472.8 | 606.5 | 899.0 |
| Bond loans and reserve based lending (Note 10) | 1,430.0 | 435.0 | 800.0 |
| Net cash/debt | 42.8 | 171.5 | 99.0 |
Alternative performance measures
Definitions and explanations of APMs
The Company has defined and explained the purpose of the following APMs:
EBITDA (Earnings before interest, tax, depreciation and amortization)
EBITDA, as reconciled above, can be found by excluding the DD&A and impairment of oil and gas assets from the profit/loss from operating activities. Management believes that this measure provides useful information regarding the Group's ability to fund its capital investments and provides a helpful measure for comparing its operating performance with those of other companies.
EBITDAX (Earnings before interest, tax, depreciation, amortization and exploration expenses)
EBITDAX, as reconciled above, can be found by excluding the exploration expenses from the EBITDA. Management believes that this measure provides useful information regarding the Group's profitability and ability to fund its exploration activities and provides a helpful measure for comparing its performance with those of other companies.
Lifting costs (USD/boe)
Lifting costs comprise of expenses related to the production of oil and gas, including operation and maintenance of installations, well intervention activities and insurances. DNO's lifting costs per boe are calculated by dividing DNO's share of lifting costs across producing assets by net production for the relevant period. Management believes that the lifting cost per boe is a useful measure because it provides an indication of the Group's level of operational cost effectiveness between time periods and with those of other companies.
Capital expenditures
Capital expenditures comprise the purchase of intangible and tangible assets irrespective of whether paid in the period. Management believes that this measure is useful because it provides an overview of capital investments used in the relevant period.
Operational spend
Operational spend is comprised of lifting costs, tariff and transportation expenses, exploration expenses, capital expenditures and payments for decommissioning. Management believes that this measure is useful because it provides a complete overview of the Group's total operational costs, capital investments and payments for decommissioning used in the relevant period.
Equity
The equity ratio is calculated by dividing total equity by the total assets. Management uses total equity and equity ratio to monitor capital and financial covenants.
Free cash flow
Free cash flow comprises net cash from/used in operating activities less capital expenditures, payments for decommissioning and net cash received/paid from equity accounted investments. Management believes that this measure is useful because it provides an indication of the profitability of the Group's operating activities excluding the non-cash items of the income statement and includes operational spend. This measure also provides a helpful measure for comparing with that of other companies.
Net cash/debt
Net cash/debt comprises cash and cash equivalents less bond loans and reserve based lending facility. Management believes that net cash/debt is a useful measure because it provides indication of the minimum necessary debt financing (if the figure is negative) to which the Group is subject at the reporting date.
DNO ASA Dokkveien 1 N-0250 Oslo Norway
Phone: (+47) 23 23 84 80 Fax: (+47) 23 23 84 81
dno.no
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