DNO Reports Interim Results

DNO achieved an operating profit of NOK 121.0 million and a net profit of NOK 96.7 million in the third quarter. Successful drilling and exploration in Yemen contributed to an increase in both production and reserves for the quarter. High exploration expenses and unfavorable development in foreign exchange rates contributed to negative net profit in the quarter.

Highlights for the quarter

  • 6 million bbls reserve increase from successful drilling campaign on Block 43 in Yemen, possible first-oil in the 2nd quarter 2005 based on revised development plan
  • Successful drilling of new production wells contributed to higher production on both the Tasour and Sharyoof fields in Yemen in the third quarter
  • A new production well on the Glitne field was put on stream during the third quarter, but the lock-out situation contributed to lower production from the field in the quarter
  • Revenues from sale of petroleum products increased from last quarter, partly offset by an increase in oil price hedging losses
  • Further reduction in lifting cost per bbl, mainly contributed by higher production in the quarter
  • Higher tax expense from Yemen activities mainly contributed by higher production / revenues
  • NOK 212 mill. in cash dividends were paid to the company's shareholders in the third quarter. Additional dividends of NOK 63 million were distributed to the shareholders as treasury shares.

  • This quarter's result reflects our company's higher focus on exploration in all geographical areas. Year to date we have succeeded in doubling our reserves compared to year-end 2003 at low cost. We are pleased to have achieved increased production during the third quarter and we expect further growth in the fourth quarter, says Managing Director of DNO ASA, Helge Eide.

    DNO had operating revenues of NOK 314,8 million (NOK 466,6 million) in the third quarter 2004. For the first nine months in 2004 the operating revenues amounted to NOK 1 272,1 (NOK 1 523,9 million). Sale of producing assets is the main reason for the decrease in operating revenues.

    DNO achieved an operating profit (EBIT) of NOK 121,0 million (NOK 127,6 million) in the third quarter 2004. For the period ending September 30 2004, the operating profit was NOK 664,5 million (NOK 614,6 million). Included in the operating profit the first nine months is a sales gain of NOK 309,5 million from the sale of assets to Lundin Petroleum AB.

    In the third quarter DNO incurred a loss after tax of NOK -96,7 million ( NOK -41,8 million). In the first nine months DNO had a net profit of NOK 187,3 million (NOK 121,8 million).


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