DNO (DNO) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of USD 761 million, up 21% quarter-on-quarter, driven by strong North Sea production and high commodity prices, offsetting near-total Kurdistan shutdown.

• Net production averaged 88,430 boepd, with North Sea contributing 84,912 boepd, West Africa 3,246 boepd, and Kurdistan 273 boepd due to prolonged shutdown.

• Operating profit rose 55% to USD 439 million and net profit increased 65% to USD 83.4 million quarter-on-quarter.

• High free cash flow of USD 289.5 million supported by favorable pricing and deferred Norwegian tax payments.

• Announced possible offer for Genel Energy at a 38% premium to pre-announcement share price, with engagement pending under UK Takeover Code.

Financial highlights

• Q2 2026 revenue reached USD 761 million, up from USD 627 million in Q1 2026 and nearly 200% year-over-year.

• Operating profit was USD 439 million in Q2 2026 (USD 283.7 million in Q1 2026); net profit was USD 83.4 million (USD 51 million in Q1 2026).

• Free cash flow enabled USD 220 million debt repayment in Q2, with cash position stable at USD 550 million.

• Net debt reduced to USD 553 million, down 30% from Q1.

• Board approved NOK 0.375 per share dividend, marking 17 consecutive quarters of payouts.

Outlook and guidance

• 2026 production guidance raised to 85,000 boepd, reflecting strong North Sea performance and new tie-back developments.

• Ambition to reach 100,000 boepd in the North Sea by 2030 remains unchanged.

• Kurdistan production outlook remains highly uncertain, dependent on security; aim to restore pre-shutdown levels if conditions permit.

• New projects Symra and Dvalin North to contribute 8,000 boepd at plateau.

• Board approved a quarterly dividend of NOK 0.375 per share for September, unchanged from last quarter.