DNO reported record second-quarter revenue of USD 761 million, up 21 percent from the first quarter, as strong production and high commodity prices in the North Sea offset a production shutdown in the Kurdistan region of Iraq. Operating profit rose 55 percent quarter-on-quarter to USD 439 million, and net profit climbed 65 percent to USD 83 million.
| Metric | Q2 2026 | Q1 2026 |
|---|---|---|
| Revenue (USD million) | 760.5 | 627.3 |
| Operating profit (USD million) | 439.0 | 283.7 |
| Net profit (USD million) | 83.4 | 50.6 |
| Net production (boepd) | 88,430 | 131,671 |
Net production averaged 88,400 barrels of oil equivalent per day during the quarter. North Sea assets contributed 84,900 boepd, West Africa 3,200 boepd and Kurdistan 300 boepd. DNO's largely unhedged North Sea production captured the upside from strong oil and gas prices driven by the continued Middle East crisis.
'We're unhedged, but not unhinged by market turmoil,' said Executive Chairman Bijan Mossavar-Rahmani. 'In the meantime, our North Sea assets are hitting on all 12 cylinders.'
With the bulk of annual maintenance completed and new developments onstream, DNO raised its 2026 North Sea production guidance to 85,000 boepd, an increase of 3,000 boepd from its projection at the start of the year.
Kurdistan restart
DNO halted production and drilling on its operated Tawke license as a precaution after U.S.-Israeli air strikes against Iran in late February. Limited field operations resumed on 9 April, with workovers on existing wells and the relaunch of a previously announced eight-well drilling campaign. Production restarted at the Tawke field on 28 June and at the Peshkabir field on 11 July. With new wells contributing and absent further security setbacks, DNO expects Tawke license production to stabilize near pre-shutdown levels. The company is currently selling its entitlement oil at prices in the mid-to-upper USD 30s per barrel while it continues to seek access to export markets or export prices.
Genel takeover offer
DNO holds a 75 percent stake in the Tawke license, with a subsidiary of Genel Energy plc holding the rest. On 7 August, after the quarter closed, DNO announced a possible offer to acquire Genel Energy plc. The indicative offer of 69 pence per share represents a 38 percent premium to Genel's closing price on 6 August, the last business day before the announcement. Genel shareholders could take cash, or elect a combination of cash and newly issued DNO shares equivalent in value to the indicative cash offer per share.
'This is a compelling proposal for Genel shareholders,' said Mossavar-Rahmani.
DNO's board approved a quarterly dividend of NOK 0.375 per share, payable in September, maintaining the same level as the previous four quarters.
