DNO (DNO) Q4 2025 earnings summary

Executive summary

• Net production reached a record 110,700 boepd in 2025, up 43% year-over-year, driven by the Sval Energi acquisition and strong performance in the North Sea and Kurdistan.

• Revenues more than doubled to USD 1,474 million, with cash from operations also more than doubling to USD 929 million.

• Operating profit rose to USD 513 million, but net profit was negative USD 25 million due to high Norwegian taxes and financial expenses.

• USD 130 million was distributed to shareholders via dividends in 2025, with a new quarterly dividend approved.

• Celebrated 500 million barrels produced from the Tawke license, with significant remaining reserves.

Financial highlights

• 2025 revenues: USD 1,474 million, up 120% from 2024, with 86% from the North Sea.

• Operating profit: USD 513 million (vs. USD 204 million in 2024); net profit: negative USD 25 million (vs. negative USD 27 million in 2024).

• Cash from operations: USD 929 million (vs. USD 433 million in 2024); operational spend: USD 1,550 million in 2025, projected to rise to USD 1,650 million in 2026.

• Q4 2025 revenues were USD 481.6 million, with operating profit at USD 177.1 million, impacted by lower North Sea prices and higher Kurdistan volumes.

• Net cash/debt position at year-end was negative USD 885.9 million, a significant shift from a net cash position in 2024.

Outlook and guidance

• North Sea net production guidance for 2026 is 82,000 boepd, with development capex projected at USD 590 million.

• Kurdistan 2026 capex projected at USD 100 million, targeting 100,000 boepd gross operated production.

• Increased CapEx expected in 2026 for drilling and development, with tax-deductible spend in Norway.

• Four ongoing North Sea developments expected to come onstream between 2026 and 2029, supporting future growth.

• DNO awarded participation in 17 new exploration licenses in Norway in January 2026.