Oslo, 11 May 2010: DNO International ASA (OSE: DNO) today announces its results for the first quarter 2010.
The total operating revenues in the first quarter increased to NOK 259 million, up from NOK 184 million in the same period last year. Increased local deliveries in Kurdistan and higher oil prices contributed to the increase in operating revenues.
With the higher revenues, and a 30% reduction in the cost of goods sold, the operating profit (EBIT) in the first quarter amounted to NOK 95 million compared to a loss of NOK 77 million in the first quarter of 2009.
The cash flow in the period, represented by netback, amounted to NOK 139 million, which represents an increase from NOK -6 million last year. The cash position increased to NOK 671 million in the quarter. At current oil price levels DNO expects that its cash position and cash flow from producing assets will be sufficient to cover the planned investments for this year. DNO is also considering additional investments, which will be contingent on drilling results and available funding.
The net profit was NOK 15 million in the first quarter (NOK 138 million).
"We are pleased with the results in the first quarter. Backed by higher oil production and favourable oil prices compared to last year, the financial results have improved significantly this quarter. The drilling results from Yemen are encouraging, with the Yaleen-3 well now successfully tested and we now intend to accelerate the development of this area.", said Helge Eide, Managing Director.
DNO will give a presentation of the interim financial statements for the first quarter 2010 on Tuesday 11 May 2010 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 An archived version of the webcast will be posted on www.dno.no shortly after the presentation.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, 11 May 2010
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
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)