DNO Reports Record Cash Flow, Pivot to Shareholders

09 Feb 2023 07:00 CET

Oslo, 9 February 2023 - DNO ASA, the Norwegian oil and gas operator, today
reported record revenues of USD 1,377 million and operating profit of USD 431
million in 2022, driven by high oil and gas prices and solid operational
performance but tempered by non-cash North Sea impairments of USD 371 million.

DNO exited the year with cash deposits of USD 954 million and net cash of USD
388 million on the back of an all-time high free cash flow of USD 619 million.
The Company slashed its borrowings through bond repurchases of USD 264 million
and repayment of USD 60 million of reserve-based bank loans.

Cash was returned to shareholders through quarterly dividends totaling USD 73
million and share buybacks totaling USD 12 million, representing a fourfold
increase in shareholder distributions from a year earlier.

"The Company stepped up payouts as a pivot towards shareholders who ultimately
rank highest among our stakeholders," said DNO's Executive Chairman Bijan
Mossavar-Rahmani.

Gross operated production in the Kurdistan region of Iraq averaged 107,600
barrels of oil per day (bopd) in 2022, of which the Peshkabir field contributed
62,000 bopd and the Tawke field 45,100 bopd. Of the total, 80,700 bopd were net
to DNO.

Elsewhere, net production from the North Sea averaged 13,300 barrels of oil
equivalent per day (boepd) and 3,300 boepd from West Africa, where the Company
holds a nine percent interest in four gas fields offshore Côte d'Ivoire.

Across the portfolio, DNO projects total operational spend in 2023 of USD 640
million, down 14 percent from last year, largely reflecting lowered capital
expenditures in Kurdistan to USD 135 million, which can adjusted depending on
timing of payment for oil sales. The last payment for Tawke license production
of USD 63.1 million covering August 2022 was received after the close of the
reporting period.

In the North Sea, the Company projects capital expenditure of USD 85 million.
DNO submitted field development plans at yearend for Andvare (32 percent) and
Berling (30 percent). In addition, a nine-well exploration and appraisal program
has been launched for 2023, with the first well resulting in a commercial
discovery at Røver Sør (20 percent). Two of six exploration wells drilled last
year led to commercial discoveries (Ofelia 10 percent and Kveikje 29 percent).

For 2023, DNO projects gross operated production averaging of 100,000 bopd in
Kurdistan. Production levels in the North Sea and in West Africa are expected to
remain essentially the same as last year.

A videoconference call with executive management will follow today at 11:00
(CET). Please visit www.dno.no to access the call.


Key figures

  Q4 2022 Q3 2022 Full-Year 2022 Full-Year 2021

Gross operated production 107,822 109,054 107,637 108,713
(boepd)

Net production (boepd) 95,697 95,698 93,983 94,477

Revenues (USD million) 338 339 1,377 1,004

Operating profit/-loss (USD -76 191 431 321
million)

Net profit/-loss (USD million) 43 130 385 204

Free cash flow (USD million) 150 151 619 362

Net cash/-debt (USD million) 388 252 388 -153


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For further information, please contact:
Media: media@dno.no
Investors: investor.relations@dno.no

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DNO ASA is a Norwegian oil and gas operator active in the Middle East, the North
Sea and West Africa. Founded in 1971 and listed on the Oslo Stock Exchange, the
Company holds stakes in onshore and offshore licenses at various stages of
exploration, development and production in the Kurdistan region of Iraq, Norway,
the United Kingdom, Côte d'Ivoire, Netherlands and Yemen.

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site

581771_2022 Interim Results Report.pdf
581771_2022 Interim Results Presentation.pdf