The total operating revenues in the third quarter increased to NOK 950 million, up from NOK 324.5 million in the third quarter 2008. Export revenues from Tawke field are estimated to be approximately NOK 714 million in the third quarter. An increase in oil prices in the quarter also contributed to the higher operating revenues.
For the first nine months of 2009, operating revenues were NOK 1,492.3 million, up from NOK 1,158.9 million year-on-year. The contribution from export sale on the operating revenues was approximately NOK 843 million year-to-date.
A provision of NOK 396 million has been made in the third quarter for accounting purposes to reflect outstanding payment issues and other potential items.
"During the third quarter we delivered strong operational results. The working interest production averaged at 44,500 bopd resulting from the commencement of export of oil from the Tawke field. We are also pleased to note that the Bayoot development in Yemen is in line with the plan and that the production from the field is steadily increasing, said Helge Eide, Managing Director.
He continues: We recommenced exploration activities both in Yemen and Mozambique during the third quarter. However, the combined exploration and development expenditures dropped significantly compared to last year as a result of lower activity, and the Company remains focused on tight capital discipline,"
The operating profit (EBIT) in the third quarter amounted to NOK 148.3 million (NOK 26.9 million). In the first nine months of 2009, EBIT ended at NOK 188.8 million (NOK 306.3 million).
The cash flow in the period, represented by netback, amounted to NOK 313.5 million (NOK 64.5 million), and for the first nine months netback amounted to NOK 506.3 million (NOK 481.4 million).
The net profit was NOK 45.0 million in the third quarter (NOK -2.6 million). Year-to-date net profit was NOK 413.9 million (NOK 73.3 million).
DNO will give a presentation of the interim financial statements for the third quarter 2009. The presentation will be held on Wednesday 11 November 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 An archived version of the webcast will be posted on www.dno.no shortly after the presentation.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, 11 November 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