| Friday, February 07, 2025 | 5:17 AM EST

DNO ASA on Thursday reported a net loss of $98.4 million, or -$0.1 per share, for the fourth quarter of 2024, mainly driven by an impairment from an Iraqi license and depreciation of North Sea assets.

Its stock closed lower by a krone at NOK 12.5 ($1.12) on the Oslo stock exchange on results day.

The Norwegian oil and gas exploration and production company had $20 million in net profit for the prior quarter and $4.2 million for the fourth quarter of 2023.

The loss comes despite net production growing both year-on-year and quarter-on-quarter to nearly 78,000 barrels of oil equivalent a day (boed), according to results it published online. The Kurdistan region in Iraq contributed 59,000 boed. The North Sea, where DNO holds stakes on the Norwegian and United Kingdom sides, accounted for 15,200 boed. West Africa added 3,100 boed.

“Our Kurdistan team is doing a terrific job”, said DNO executive chair Bijan Mossavar-Rahmani. “Maintaining, never mind increasing, production from mature carbonate reservoirs without new drilling is rare, even exceptional”.

“In Norway, we are applying a similar ‘can-do’ spirit to get our barrels from a string of recent discoveries out of the ground and into the market and do so faster than is the norm here”, Mossavar-Rahmani added.

Sales volumes in the October-December 2024 period totaled over 34,500 boed, down by prior-year comparison but up sequentially.

DNO recognized $104.4 million of impairment losses from oil and gas assets, “mainly driven by the results of well testing programs in the Baeshiqa license, updated economic profiles at the Vilje field and an increase in the ARO provision at the Ula area CGU following annual update in the cost estimates for decommissioning”. DNO attributed $89 million of the total impairment to Kurdistan and the rest, $15.4 million, to the North Sea.

The testing program for the Baeshiqa field in the Kurdistan region in Iraq yielded 20 barrels of oil per day gross, after halting production from mid-2023. “The Company is currently working to minimize license running cost while reviewing its options”, said DNO, which holds a 64 percent operating stake in the license.

Meanwhile higher production in the North Sea drove a sequential increase in depreciation, depletion and amortization from $39.9 million for the third quarter to $47.3 million for the fourth quarter, DNO said.

Revenue for the 2024 fourth quarter totaled $177.6 million, down compared to $199.3 million for the 2023 fourth quarter but up from $170.5 for the 2024 third quarter.

EBITDAX landed at $100.4 million, down from $135.1 million for the 2023 fourth quarter and $106.7 million for the 2024 third quarter.

EBITDA settled at $71.4 million, down from $116.8 million for the 2023 fourth quarter but up from $69.3 million for the 2024 third quarter.

DNO logged an operating loss of $81.9 million, compared to operating profits of $37.6 million and $30.6 million for the 2023 fourth quarter and the 2024 third quarter respectively.

Free cash flow was -$5.4 million, though DNO ended the quarter with $99 million in net cash.

Dividends paid for the 2024 fourth quarter increased to $27.4 million from $22.7 million for the 2023 fourth quarter.

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