Oslo, 17 February 2010: DNO International ASA (OSE: DNO) today announces its results for the fourth quarter and full year 2009.
DNO delivered a Working Interest (WI) production in the fourth quarter of 13,500 bopd (12,366 bopd). In 2009 the WI production, including exported volumes from Tawke was 21,500 bopd (15,700 bopd). Excluding the exported volumes from Tawke the 2009 WI production was 12,285 bopd.
The net entitlement production in the fourth quarter was 8,622 bopd (8,131 bopd). In 2009 the net entitlement production, including exported volumes from Tawke was 14,544 bopd (10,734 bopd). Excluding the exported volumes from Tawke the net entitlement production in 2009 was 8,394 bopd.
DNO restarted both exploration and drilling activities in Yemen in 2009. During the fourth quarter drilling of two new appraisal and development wells commenced, and both wells are expected to be brought on stream during the first quarter of 2010.
"In 2009 the Company reached another important milestone through the commencement of export from the Tawke field in Kurdistan, which proved deliveries in line with the design capacity. This combined with successful infill drilling and development work in Yemen has contributed to the increased production delivered by the Company in 2009". says Helge Eide, Managing Director of DNO International ASA.
Restatement of accounts
In the interim reports for the second and third quarter of 2009, export revenues from the Tawke field in Kurdistan were included. As neither a signed sales agreement nor any payments for exported crude oil have been received at year-end 2009, the criteria for revenue recognition are no longer satisfied (according to accounting standard IAS 18). The revenues for the second and third quarter 2009 have therefore been restated. According to the same standard, the production costs (lifting costs and DD&A) related to the export volumes have been capitalized as inventory, and export volumes have been excluded from the production figures. The previously reported second and third quarter figures have been restated to reflect this. The net effect on the restatements of the accounts is negative by about NOK 300 million in the 2009 annual accounts.
The total operating revenues in the fourth quarter increased to NOK 226 million, up from NOK 217 million in the fourth quarter 2008. Increased production as well as an increase in oil prices in the quarter contributed to the higher operating revenues.
For the full year 2009, operating revenues were NOK 869 million, down from NOK 1,376 million in 2008. The reduction was mainly due to lower net entitlement production and lower realized oil price.
Certain special items related to write down of deferred tax assets, change in ownership in DETNOR and other items amount to a total of NOK 389 million, which was recorded in the fourth quarter of 2009.
Following these special items the EBITDA for the fourth the quarter was NOK -9 million (NOK -197 million), the EBIT was NOK -75 million (NOK -298 million) and the netback was NOK - 44 millon (NOK -227 million). The net profit in the fourth quarter was NOK -385 million (NOK -977 million).
For 2009 the EBITDA was NOK 122 million (NOK 453 million), the EBIT was NOK -179 million (NOK 9 million), and the netback was NOK 30 million (NOK 255 million). The net profit in 2009 was NOK -270 million (NOK -904 million).
"Although our financial results for 2009 are negatively affected by the absence of payment of exported oil from Tawke as well as special items recorded during the fourth quarter 2009, the Company is well prepared for 2010. Our current cash position combined with the cash flow from our producing assets provides the funding required for undertaking our planned increased activities" says Helge Eide, managing Director of DNO International ASA.
For full interim report, please see the attachments on www.newsweb.no and www.dno.no.
DNO will give a presentation of the interim financial statements for the fourth quarter 2009. The presentation will be held on Wednesday 17 February 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, 17 February 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)