Increased Production, Higher Oil Prices Ups Revs for DNO
DNO International reported operating revenues of NOK 365 million in the fourth quarter 2007, compared to NOK 247 million in the corresponding period last year. The increase is due to increased production and higher oil prices for the period. For the full year 2007, DNO's sales increased by 11 percent to NOK 1 320 million.
" During the last three months of 2007 we have delivered important operational results in Kurdistan. Re-testing of the Tawke-1 discovery well turned this well into the best producer to date and we revised the Tawke gross reserves by 130 percent. In addition we have re-commenced exploration activities in other areas of the PSAs in Kurdistan," said Helge Eide, Managing Director of DNO.
In Yemen new wells were brought on stream and our annual production from that region was in line with our target for the year. In Norway we have completed the integration agreement between our former Norwegian subsidiary, NOIL Energy ASA and the former Pertra ASA, literarily forming the second largest Norwegian E&P company on the NCS under the name of Det norske oljeselskap ASA.
Profit from operations increased by five percent from NOK 62 million in the fourth quarter 2006 to NOK 65 million in the fourth quarter this year. Non-cash depreciation charges increased by NOK 50 million in the quarter mainly due to reserve revisions on the Nabrajah field in Yemen. For the full year 2007, profit from operations increased by 7 percent to NOK 492 million.
During the fourth quarter pre-tax expensed exploration costs increased to NOK 100 million from NOK 89 million in the fourth quarter last year. Corresponding figures for the 12-month period was NOK 264 million in 2007 and NOK 340 million in 2006.
DNO ASA reported a netback of NOK 143 million in the fourth quarter compared to NOK 76 million in the same period in 2006. For the full year, netback increased to NOK 670 million from NOK 420 million in 2006.
The fourth quarter net profit amounted to NOK 829 million, compared to a loss of NOK 31 million in the fourth quarter last year. The NOIL Energy ASA restructuring contributed NOK 871 million in net profit for the quarter and also provided a strong increase in the Group equity. Net profit increased to NOK 1 006 million for the 12 months period, up from NOK 61 million in 2006.
In the period the company had a net increase in cash leading to a 2007 year end closing cash position of NOK 750 million.
Earnings per share were NOK 0.94 in the fourth quarter 2007 and NOK 1.14 for the full year. This compares to NOK -0.04 in the fourth quarter 2006 and NOK 0.07 for the full year 2006, on both a basic and diluted basis.
"We are pleased with our key operational achievements in 2007. Both the Company's P50 reserves and resources as well the production to the Company increased during the last six months of the year. In 2008 DNO is targeting a substantial resource potential through en extensive exploration program and a step change in production could be achieved once export permit is in place in Kurdistan," said Helge Eide.
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