DNO : 2021 Interim Results Presentation

2021

Interim Results Presentation

2021 0perational and financial highlights

Cover photo: Signing of the Baeshiqa first phase development plan by the license Management Committee chairperson Dr Khazal Auzer (KRG) and vice chairperson Tom Allan (DNO).

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2021 operational highlights

•	Net production to DNO's interest of 94,500 barrels of oil equivalent per day (boepd) in
	2021 (94,200 boepd in Q4 2021), of which 81,500 barrels of oil per day (bopd) from the
	Kurdistan region of Iraq (80,600 in Q4 2021)
• North Sea contributed another 12,900 boepd (13,600 boepd in Q4 2021), down from
	2020 levels due to natural decline, delayed new production and planned maintenance
•	Five North Sea exploration wells led to four discoveries, of which two likely commercial
•	Exited 2021 with net 2P reserves (proven plus probable) of 321 million barrels of oil
	equivalent (MMboe) and 2C contingent resources of 189 MMboe
•	In Kurdistan, Baeshiqa license development approved and fast-tracked with early
	production expected before midyear 2022

Net production

thousand boepd

110.3

100.1

87.1

71.2

94.5

• DNO had 90 licenses across its portfolio at yearend 2021 (23 operated), of which two in

Kurdistan, 73 in Norway, 11 in the United Kingdom, two in the Netherlands, one in Ireland

and one in Yemen; Awarded 10 additional APA licenses in Norway in January 2022

2017	2018	2019	2020	2021
		Middle East		North Sea

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2021 financial highlights

•	Record revenues topped USD 1 billion in 2021, up 63 percent from a year earlier, on
	back of high oil and gas prices and solid production
• North Sea revenue boosted by spot gas price exposure in strong European market
•	Return to profitability with operating profit of USD 321 million
•	Exited 2021 with net debt of USD 153 million, down from USD 473 million a year earlier
• Resumed dividend payments

Revenues

USD million

971 1,004

829

615

347

2017	2018	2019	2020	2021
		Middle East		North Sea

Operating profit

• New USD 400 million five-year bond issued, refinancing prior bond facility, lowering

521

USD million

	average debt interest rate and extending maturities
•	On a cash basis, received USD 537 million from Kurdistan in 2021 (USD 398 million
	towards entitlements, USD 48 million towards overrides and USD 90 million towards
	payment arrears)
•	Yearend outstanding Kurdistan arrears of USD 169 million down from USD 259 million

377321

76

-315

2017 2018 2019 2020 2021

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Reserves and resources overview

2P Reserves

Contingent Resources (2C)

Norway 52	Norway 112
UK 2	UK 1

321	Kurdistan 71	189
MMboe	Yemen 5	MMboe

Kurdistan 267

Middle East		North Sea

Net to DNO at yearend 2021 in million barrels of oil equivalent (MMboe)

9.3 years

2P reserves-to- production ratio

14.8 years

2P reserves+contingent

(2C)-to- production ratio

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Preliminary figures subject to final release