The total operating revenues in the second quarter were NOK 358.7 million, down 13.4 per cent compared to the second quarter 2008. This decline is primarily a result of significantly reduced oil prices as well as lower production. For the first six months of 2009, operating revenues were NOK 542.4 million, down from NOK 834.4 million year-on-year. However, the operating revenues in the period were positively impacted by the ramp-up of production and export sales from the Tawke field contributing with approximately NOK 129 million in the second quarter and year to date.
"In line with our change in focus in 2009 we have prepared for increased production and scaled down our exploration activities and overall investments in 2009. Through tight capital discipline we have maintained a stable cash position throughout the first half of the year," said Helge Eide, Managing Director
The operating profit (EBIT) in the second quarter amounted to NOK 117.6 million (NOK 125.3 million). In the first half of 2009, EBIT ended at NOK 40.5 million (NOK 279.4 million).
The cash flow in the period, represented by netback, amounted to NOK 198.3 million (NOK 185.4 million), and for the first six months netback amounted to NOK 192.7 million (NOK 416.9 million).
Net profit in the second quarter ended at NOK 230.9 million (NOK 13.6 million). The increase includes a partial impairment reversal on the DETNOR investment.
DNO has focused on capital discipline, and as a result capital expenditures for the second quarter were reduced to NOK 75.4 million compared to NOK 344.6 million in the same period last year. The cash position at the end of the second quarter was NOK 210 million.
DNO reached an historical milestone in Kurdistan on 1 June with the commencement of crude oil export from the Tawke field. The field delivery has been increased stepwise in line with the plan and the current delivery from Tawke is around 50,000 bopd with 45,000 bopd for export.
"We are pleased with the performance of the Tawke facilities which has now confirmed deliveries at least in line with the design capacity. Our key objective going forward is to maintain stable production at high regularity", said Helge Eide, Managing Director
DNO will give a presentation of the interim financial statements for the second quarter 2009. The presentation will be held on Wednesday 19 August 2009 at 08:00 A.M. in the "Lille Sal" at Oslo Konserthus, Munkedamsveien 14.
The presentation can also be followed live on the Internet, via a video webcast at www.dno.no. An archived version of the webcast will be posted on www.dno.no shortly after the presentation. The presentation will be given in English.
DNO International ASA
Oslo, 19 August 2009
For further information, please contact;
Helge Eide, Managing Director, DNO International ASA; +47 23 23 84 80
Ketil Jørgensen, Crux Kommunikasjon (Norway); +47 930 36 866
Ben Willey, Buchanan Communications (UK); +44 207 466 5000
Investor Relations contact:
Haakon Sandborg, CFO, DNO International ASA; +47 23 23 84 80