DNO International Posts Financial Results for Third Quarter
DNO International has announced its interim results for the third quarter and first nine months of 2008.
The temporary halt in test production from Tawke during the third quarter reduced the total sales to the company in the third quarter. The operating revenues decreased by 13% to NOK 325 million (NOK 375 million). YTD operating revenues increased by 21% to NOK 1,159 million (NOK 955 million).
In the third quarter DNO reported an EBITDA of NOK 116.0 million (NOK 217.8 million). For the first nine months, the EBITDA was NOK 649.6 million (625.4 million).
EBIT for the third quarter amounted to NOK 26.9 million (150.3 million). For the first nine months DNO reported an EBIT of NOK 306.3 million.(NOK 427.8 million).
Netback in the third quarter was NOK 65 million (NOK 192 million) and YTD netback was NOK 481 million (NOK 547 million).
Net profit in the third quarter was NOK -3 million (versus NOK 19 million before discontinued operations in the same period last year) and YTD the net profit was NOK 73 million (versus NOK 121 million before discontinued last year).
Certain amendments to PSC contracts in the Kurdistan region of Iraq were concluded in the third quarter. This implies that the Tawke PSC area was extended to include another prospect increasing DNO's working interest by 15% to 55% in this prospect. In return, DNO will pre-relinquish most of the Dohuk area. Incurred petroleum costs to date from the Dohuk area will be transferred to the Tawke PSC and will be recovered from the Tawke production.
All remaining work in preparation for export of crude oil from Tawke commenced and good progress was made during the third quarter.
"After a several years with high exploration activities adding new reserves and resources to the Company we are now facing a period with the focus more towards increased production and near term developments. This will change the balance between exploration and production activities within DNO and we are now positioning the Company to deliver growth in production going forward," said Helge Eide, Managing Director.
- KRG Delivers Payments to Genel, DNO, Gulf for Tawke, Shaikan Production (Jan 23)
- DNO Makes Oil Find in Kurdistan Region of Iraq (Jan 09)
- Total, Shell, Eni Eligible to Bid for New Iran Oil, Gas Projects (Jan 03)