DNO (DNO) investor relations material

Executive summary

• Revenue rose to $258 million in Q2 2025, up 37–38% from the previous quarter, driven by the Sval Energi acquisition, which was completed for $1.6 billion and integrated from June 1, 2025.

• Operating profit surged to $86 million, up over 200% quarter-on-quarter, with net production increasing 10% to 92,600 boepd, supported by Kurdistan, North Sea, and West Africa.

• Quarterly dividend increased by 20% to NOK 0.375 per share, with a $30 million payment reflecting strong shareholder returns.

• Operations in Kurdistan were impacted by mid-July drone attacks, causing temporary shutdowns and facility damage, but production has partially resumed.

• Issued a $400 million hybrid bond and secured a $500 million gas offtake facility, strengthening the balance sheet.

Financial highlights

• Q2 2025 revenue reached $258 million, up from $188 million in Q1, with Sval Energi contributing for one month.

• Operating profit was $86 million, up from $28 million in Q1.

• Net loss of $7.3 million in Q2, impacted by higher finance and tax expenses.

• EBITDA/EBITDAX rose to $135–174 million, with cash flow from operations at $135 million and cash at quarter-end of $788 million.

• Free cash flow was negative $110.7 million, reflecting acquisition and financing activities.

Outlook and guidance

• Full quarter Sval Energi integration expected from Q3 2025, projected to further boost all metrics.

• H2 2025 North Sea production guidance is 80,000–85,000 boepd, with new tiebacks in the Norwegian Sea to add 7,000 boepd at peak.

• Kurdistan operations have resumed near normal levels post-drone attacks, with ongoing repairs and security measures; plans to resume drilling and restore production to pre-shutdown levels.

• Ongoing engagement with KRG regarding recovery of outstanding receivables and future export payments.

• Ongoing steps to optimize capital structure and reduce cost of debt.