DNO (DNO) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong results, with record North Sea production and higher oil and gas prices driving a 30% sequential revenue increase to USD 627 million and a 60% rise in operating profit to USD 284 million.

• Net profit reached USD 51 million, reversing a loss in the prior quarter, while cash from operations was USD 383 million, resulting in a net cash increase of USD 78 million.

• Net production averaged 131,700 boepd, down 12% sequentially due to a temporary halt in Kurdistan following regional conflict, but North Sea output remained robust at 88,600 boepd.

• Kurdistan operations were temporarily halted for safety after regional conflict but partially restarted in April 2026; drilling and investment have resumed post-ceasefire.

• The Board approved a quarterly dividend of NOK 0.375 per share, consistent with the previous quarter and marking 16 consecutive quarters of payouts.

Financial highlights

• Revenues rose to USD 627.3 million, up from USD 481.6 million in Q4 2025, mainly due to higher prices and increased North Sea sales volumes.

• Operating profit increased to USD 284 million, up 60% quarter-on-quarter.

• Net profit was USD 51 million, compared to a net loss in Q4 2025.

• Operational cash flow reached USD 383 million, up from USD 264 million in Q4 2025.

• Cash and cash equivalents at quarter-end were USD 531.4 million.

Outlook and guidance

• North Sea production target set at 100,000 boepd by 2030, with new projects and acquisitions supporting growth.

• Four North Sea fields are scheduled to come onstream from 2026 to 2029, with Symra starting production nine months ahead of schedule in April 2026.

• Guidance for North Sea production and operational spend remains unchanged; Kurdistan guidance updated due to ongoing uncertainties.

• Kurdistan production and investment will be lower than previously planned for 2026, but drilling and preparations for restart are underway.

• Limited field operations have resumed in Kurdistan, with plans to ramp up when security and market conditions improve.