DNO ASA (DTNOY) Q1 2026 Earnings Call Transcript – Image for illustrative purposes only (Image credits: Unsplash)
Oslo – DNO ASA posted sharply higher earnings for the first quarter of 2026, with operating profit climbing 60 percent to $284 million on revenue of $627 million. The gains came almost entirely from the North Sea, where production reached a record level near 90,000 barrels of oil equivalent per day after the 2025 acquisition of Sval Energi. Kurdistan operations stayed suspended throughout the period because of ongoing geopolitical tensions, yet the company kept its dividend unchanged and continued share repurchases.
Financial Results Show Clear North Sea Advantage
Revenue rose 30 percent from the fourth quarter of 2025, with 93 percent of the total generated by North Sea assets. Operating profit reached $284 million, while net profit turned positive at $51 million after a $34 million loss in the prior quarter. Cash holdings increased to NOK 531 million, and net debt fell 12 percent to NOK 790 million. These outcomes reflect both higher realized prices and the structural shift in DNO’s portfolio. The Sval Energi deal, completed in mid-2025, quadrupled the company’s North Sea output and insulated results from the complete halt in Kurdistan exports.
Production Volumes Highlight Regional Contrast
Net production figures for the quarter illustrate the transformation:
| Region | Q1 2026 (boepd) | Q4 2025 (boepd) | Q1 2025 (boepd) |
|---|---|---|---|
| North Sea | 88,647 | 88,271 | 19,296 |
| Kurdistan | 39,600 | 57,951 | 61,561 |
| West Africa | 3,424 | 3,456 | 3,375 |
Sales volumes followed a similar pattern, with North Sea deliveries rising while Kurdistan sales dropped sharply. The company expects North Sea output to reach 100,000 boepd by 2030 through ongoing projects such as Symra, Valhall Flank North, Bestla, and Berling.
Dividend Policy and Capital Returns Stay Steady
DNO maintained its quarterly dividend at NOK 0.375 per share, marking the 16th consecutive payment at that level. Total dividends distributed during the quarter amounted to NOK 497 million, supplemented by NOK 62 million in share buybacks. Executive Chairman Bijan Mossavar-Rahmani described the decision as straightforward given the improved cash generation. The company also noted that its market capitalization stood at $1.91 billion, reflecting a 78 percent total return over the past twelve months.
Outlook Centers on North Sea Growth and Kurdistan Restart
Management expressed confidence that the North Sea will continue to drive performance while work continues to resolve the Kurdistan situation. Drilling and workover activities have resumed in the region following a recent ceasefire, and the company is investing in protective infrastructure. Officials remain optimistic that exports can restart at higher rates once pipeline and pricing issues are settled. Several North Sea developments are advancing ahead of schedule, and an active exploration program of six wells is planned for the coming periods. The combination of these elements positions DNO to capture further upside from current energy prices while maintaining a resilient balance sheet.