Dno Asa Ord

Good afternoon, and welcome to DNO's fourth quarter 2024 earnings call. My name is Jostein Löfvoss, and I'm the communication manager here at DNO. We will start with a short results presentation, which will be given by DNO's managing director, Chris Spencer, and CFO Håkon Sandborg. After the presentation, we will open for questions in a Q&A session. Please note that the Q&A session is for investors and analysts, and media requests will be dealt with separately. During the presentation, the microphones of participants will be muted. And if you want to ask a question in the Q&A, please click on the virtual hand on top of your screen. When you are selected, you will be notified on your screen that you are allowed to unmute, after which you must remember to unmute yourself. With that, Let's start the presentation. I will hand over to Chris.

Thank you, Jostein. And good afternoon, everyone, from a cold but sunny Oslo in Norway. And welcome to DNO's 2024 interim results presentation. I'll start for a moment on the picture slide at the beginning of the pack, which for those who've read our press release or the slides will Understand that this is the team behind the tremendous performance that's been achieved in the Taugi PSC production, or some of the team members, I should say. There's a much bigger team than this, led by the gentleman in the foreground in the blue shirt. That is our asset manager for the Taugi PSC. And you see them busy working on finding the next few barrels to chase and keep up our production and sales. Thank you. Let's move on. So the Q4 and indeed 2024, as the slide says, is characterized by robust production in Kurdistan, cash flow generating production, and expansion of our North Sea business. We ended the year with total revenues of just shy of 700 million. And importantly, cash from operations jumped from 2023 level by about 50% with the figures shown on the chart. Unfortunately, we had to take some impairments in the balance sheet, and that's on the operating and net profit. But of course, those are non-cash items. The reflected in the revenues is the fact that the net production jumped year on year by a significant amount because, of course, in 2023, we were at reduced levels in Kurdistan following the closure of ITP. But in 2024, as we've been reporting through the year, we've had very, very solid operations. We've had very strong production maintaining around the 80 000 barrel a day of field capacity throughout the year on a gross basis and we've been selling into the local market at our fishing terminal for the entire year um north sea production uh was lowish lowish through the middle of the year with the typical maintenance shutdowns of the hubs that we feed into and so the fourth course really saw a a a significant increase in production in that part of the business too not only as as those maintenance shutdowns concluded but also with the integration of the acquisitions we've done and the restart of the trim field which you'll come back to So all of that plays into the fact that we are still happy to have a robust balance sheet. We're still in a positive net cash position with a lot of money available to us to grow the business and to support what we see as a sustainable level of dividend and that we're very pleased we've been able to maintain for another quarter.

Next slide, please.