DNO ASA

Earnings Release • Aug 21, 2025

DNO Hikes Dividends on Back of Transformative Acquisition, Posts Strong Second Quarter Results

DNO Hikes Dividends on Back of Transformative Acquisition, Posts Strong Second Quarter Results

Oslo, 21 August 2025 - DNO ASA, the Norwegian oil and gas operator, today

reported strong second quarter results with revenue up 37 percent to USD 258

million from the prior quarter and operating profit up 206 percent to USD 86

million, even with the contribution from the transformative USD 1.6 billion

acquisition of Sval Energi Group AS in Norway recorded only as from 1 June 2025.

Net production during the quarter increased 10 percent to 92,600 barrels of oil

equivalent per day (boepd), of which 56,100 boepd from the Kurdistan region of

Iraq, 33,300 boepd from the North Sea and 3,200 boepd from West Africa. With the

addition of the Sval Energi assets, projected second half 2025 North Sea

production is 80,000-85,000 boepd.

While months-long repairs are pending and security concerns remain following

drone strikes on DNO operated fields in Kurdistan, DNO has ramped up gross

production on a test basis to 55,000 boepd, about evenly split between the Tawke

and Peshkabir fields.

"With strong production and cash generation across the portfolio, we will

continue our pivot to delivering increased cash value to our shareholders with

stepped up dividends while streamlining and trimming expenditure across the

Company," said Executive Chairman Bijan Mossavar-Rahmani. "We are also focused

like a laser on lowering the level and cost of debt," he added.

Post Sval acquisition, DNO has production from over 30 North Sea fields. Its

most recent development, Maria Revit, was put on production in May 2025 and will

contribute some 4,000 boepd net to DNO at peak. Elsewhere in Norway, the Company

has six ongoing tieback developments scheduled to come onstream between 2025 and

2029, which together will contribute some 25,000 boepd net to DNO at the end of

that period. Combined, the six developments represent nearly 50 million barrels

of oil equivalent (MMboe) in proven and probable reserves net to DNO.

Another three tieback projects are moving toward 2025-26 final investment

decisions. More than a dozen other discoveries, including DNO-operated

Kjøttkake, Norma and Othello, are being matured for project sanction.

DNO's exploration success continued with the discovery of Vidsyn (DNO 25

percent) announced in July. So far this year, DNO has made three commercial

discoveries in four exploration wells with total net mean resources of 34 MMboe.

Soon, the Company will spud the Page exploration well which is a follow-up on

the 2024 Othello discovery within the same license in which DNO holds a 50

percent operated stake.

"We will also work to prune our assets of low return projects and add higher

return ones," Mr. Mossavar-Rahmani said, adding that there are no sacred cows in

the portfolio. "The only sacred cows at DNO are our shareholders."

In mid-July, explosive drone strikes by unidentified parties impacted operations

of a number of international oil companies in Kurdistan, including DNO's

operations at its Tawke license (75 percent and operator). No individuals were

injured, but surface processing equipment at Peshkabir and an oil storage tank

at Tawke were hit.

With revenues secured through local sales, in addition to long-term repairs, DNO

is planning to recommence drilling to return to pre-Iraq-Türkiye Pipeline

shutdown production levels of 100,000 boepd.

On the financing side, DNO issued its first USD 400 million hybrid bond in June

in connection with the Sval Energi acquisition and repaid over USD 600 million

in reserve-based lending facilities. The Company also borrowed USD 300 million

in the form of a temporary bank bridge loan, of which USD 150 million was repaid

in August. Following the end of the quarter, DNO entered into a North Sea gas

offtake agreement and a related USD 500 million financing facility well below

the Company's historic borrowing costs. DNO is in discussions to establish

similar arrangements covering its North Sea oil production.

The Board of Directors has authorized a dividend payment of NOK 0.375 per share

to be paid early next month (representing NOK 1.50 per share on an annualized

basis), up 20 percent from prior quarterly distributions.

A videoconference call with executive management is scheduled today at 10:00

(CET). To access the call, please visit www.dno.no.

Key figures

Q2 2025 Q1 2025 Full-Year 2024

Net production (boepd) 92,593 84,232 77,269

Revenues (USD million) 258 188 667

Operating profit/-loss (USD million) 86 28 6

Net profit/-loss (USD million) -7 -4 -27

Free cash flow (USD million) -112 -19 59

Net cash/-debt (USD million) -860 43 99

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For further information, please contact:

Media: media@dno.no

Investors: investor.relations@dno.no

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DNO ASA is a Norwegian oil and gas operator active in the Middle East, the North

Sea and West Africa. Founded in 1971 and listed on the Oslo Stock Exchange, the

Company holds stakes in onshore and offshore licenses at various stages of

exploration, development and production in the Kurdistan region of Iraq, Norway,

the United Kingdom, Côte d'Ivoire and Yemen. More information is available at

www.dno.no.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.