Dno Asa Unsp/Adr

Good morning and welcome to DNO's third quarter 2026 earnings call. My name is Jostein Löfvås and I'm the communications manager here at DNO. With me today are our executive chairman Bijan Mossavar-Rahmani, managing director Chris Spencer and CFO Birgitte Wendelbo Johansen. It's a wonderful day here in Oslo. Not only are we delivering strong results, but it's also Birgitte's 50th birthday. Who would have thought? So with that, Bijan will start us off with some short introductory remarks, after which Chris and Birgitte will take you through the presentation. We'll then open for questions afterwards. With that, let me hand over to Bijan.

Thank you and good morning to everyone. Pleased to join you for our third quarter results presentation. 50 is not only Birgitte's birthday, but it's also our share price target. So we are ambitious and optimistic about the opportunities ahead for DNO. We've had a very strong quarter, and my colleagues will describe the operational and financial contributions to that. But we've had a number of strong quarters in the past several years. and we're very proud of the success of the company and our growth and importantly how we have continued to build and optimize our portfolio and we have a lot of very exciting projects ahead which we will touch on. So welcome to this meeting and I will now turn to Chris to give our operational updates.

Thank you very much Bijan and good morning to everyone from beautiful Oslo. Could we move to the first slide please? Very positive quarter again for DNO. On the operational side, the big number of course is the return of our Kurdistan business unit to strong production. This is of course the North Sea with these high oil and gas prices that is still stealing the show and is the driver behind the record revenues again from the quarter with us topping the billion dollars in one quarter. That leads of course to some very attractive financial figures for the quarter which Birgitte will go into in further detail later in the presentation. As those who follow the company have noticed, we've had a very high level of business development activity in the quarter. We are very active on the business development side. I guess the difference in this past quarter is a lot of that has played out in public since we made offers for listed companies. And as you are aware, we have been Keeping our discipline and keeping to our strategy with those approaches. Similarly, on the portfolio optimization side, we divested our Côte d'Ivoire business and that has been a very nice piece of business for D&O since we entered the country almost exactly four years ago. On the North Sea side, the production was similar to the previous quarter. We're now pretty much through the what they call summer maintenance season and are guiding 86,000 barrels of all equipment for the full year. And that's a bit higher than we expected at the beginning of the year. So we're very pleased with that. All in all, as said, a very strong quarter and easy decision for the Board of Directors, I think, to maintain the dividend, this being the sixth quarter that we've got at the dividend at that level. If we move on to the next, really reflecting that the fire acquisition we made We have, as we promised, delivered on the operational and financial synergies in the North Sea on the back of that acquisition. which has resulted in very strong asset performance, acceleration of developments and reduced cost of capital. It has of course also importantly put our company in a position to benefit from this year's high oil and gas prices. All of this leaves us better placed for further growth than I think we have ever been in my nine years with the company. and because of that we thought it would be helpful to spend a few minutes on this slide to explain to the market the way we think about further growth for DLO and to reassure everyone that in doing so we're not getting carried away with commodity prices we are very focused as always on delivering shareholder value so It's a simple strategy, I think, for further growth. North Sea remains, as we've been saying, we've got our target for 100,000 barrels of oil equivalent by 2030. And as always, we're pushing ourselves to achieve it, at least in that time. We have a very wide portfolio and a very good team that is working to optimize that portfolio. together with the operators and obviously where we operate directly with the assets and there's a huge opportunity set as the as the figures there represent so we're working very hard to deliver the organic growth there's also been a lot of bolt-on M&A which I'll come back to in the final point which is a key part of our North Sea work. Kurdistan we have rather than A large number of smaller assets from a DNO interest perspective. We have the two huge fields of Talke and Peshkebir. Tremendous resource potential remaining there and we're very happy to be back to drilling and looking at potentially taking on a third rig this year. and so we're very focused on monetizing those remaining reserves and in particular to converting the duty resources we have in the Taukey PSC into reserves. The big upside I think in Kurdistan remains the access to international prices combined with the surety of payments or certainty of payments as we've written here and That remains a key focus for us in the management of DNO in the months ahead. Then the third piece of this strategy is using our new business development activities and I touched on the portfolio optimisation part, that's been a We are going to be We have been disciplined and will continue to be disciplined when we're looking for these third legs. We are very challenging to ourselves in terms of where to go. The grass is always greener on the other side of the road, as we say in English, and that's something to be very careful about. So we look to our competitive advantages, whether that's technology, Relationships, proximity to existing operations, government relations. And that is the areas that we seek to target. And then as we move forward, we always, the old adage that you look at 10 opportunities to get one. I guess that in this competitive oil and gas space is the sort of minimum ratio. So we do a lot of investigations and maintain that discipline importantly, which, as I touched on the last slide, has been evident to the market with the discipline we've exercised in our business development work over the past few months. So I hope that is helpful to everyone who follows the company. Moving from strategy, we now move to the news of the day. Alongside our results this morning, we put out an announcement of two pieces of news. First of all, our Shirkarka project, a fantastic project to be involved in, leading in many respects. We were operator of Shirkarka, of course. drilled the exploration well in 2025 and sidetracked it immediately to appraise which laid the groundwork for this great partnership we've developed with ARCA BP where they have taken on the operatorship during the development phase benefiting from the relationships and order book they had with their suppliers and their standardisation drive and We are on track for a record fast development in the Norwegian container shelf. It's very exciting for us and it's passed a very significant milestone just this week with all three of the partners confirming that they're sanctioning the project, the so-called Decision Gate 3 in the old project terminology. Of course, this has also been an area where we've been optimising our position through M&A, which is touched on this slide, and we are now pleased to be able to have a small interest in the key hub in the area, the yurr field, because we have numerous tiebacks that we're involved in that we'll be producing through yurr in the years ahead. If we move to the next slide, please. The second piece of news was very gratifying results from the Aphrodite appraisal well. A very positive BATSA discovery that has been on the shelf or the operator has been wondering what to do about that for some time, decided that appraisal was needed before commercialisation and we entered it through a swap transaction with and Equinor earlier in the year. And so very, very pleased that the appraisal there has been successful. I think it's said in the news that we, yes, we've more than doubled the resource estimate. And now Kvita Björn, which was, which is a hub where we have an interest through the soil transaction and was maturing. I mean, this whole area is going to be revitalised now in the next few years. Atlantis is moving rapidly to ascension. And with Aphrodite and Carmen there, with the stimulation and tracking technologies around, we are optimistic that this will be a very interesting area in the years to come. Thank you. Next slide, please. Of course, the news today is just the latest on the conveyor belt that we are developing in the North Sea. And this is a busy slide. I'm not proposing to go through every bullet point, but we've been seeking over the past few quarters to communicate how we will be building our business and achieving our 100,000 barrel a day target. Notably, six months ago, my colleague Morten Grinney from the North Sea Business joined us to do a bit more of a deep dive through a few of these projects, including, of course, Shotokaka. This time, we're just trying to give you a bit better portfolio view of how we've already delivered. So we've delivered, since the beginning of last year, five projects into production. Those are now producing about 18,000 barrels a day. In the middle then we have now six projects under development following the final investment decision on Jutkaka. Those total around 40 million of resources that we expect to be booking as reserves at the end of the year. And the next line of projects are coming through to deliver another 40 million. and those are the ones that are coming up to project sanction in the near future. So very busy time for us, but this is not, when I say busy time, this is the normal. We will be pushing through this type of project activity every year as we move forward. And so it's a very fun business to work in. I'll leave you to study the individual projects in more detail. As I said in past quarters, we've also provided more information on many of them. But I just want to add that the reserves and resources increases that we have on this slide are not the whole picture in terms of our reserves replacement. We also have positions in important Hub assets such as Martin Linger, Ecofisk and these assets are also, we're also working hard with the operators to generate additional reserves and resources in those assets. And that's how we plan to grow and replace reserves as we go along. We go to the next slide, then we are well known as an exploration company in the North Sea these days, I think, punching above our weight with respect to the number of wells we drill, but also importantly, the commercial success rate. And of course, that is then the next step in this story that we are really we continue to fill the project funnel through organic efforts through the drill bit. primarily complemented by selective asset transactions. So far this year, we've had what we're classifying as three appraisal. There's always, in my world, there's more sort of appraisal of discoveries and appraisal that's more outreach. I've talked about Aphrodite at length already. I would like to highlight the CIMRA where this is another great piece of business in the North Sea where we took the opportunity when drilling a development well to have a small pilot into a nearby structure which we expected to contain resources or hoped such that we called it appraisal but that's a smaller volume but very high value barrels because it's so easy to tie to produce through the existing infrastructure there. Then we and then the other point just to note here is a bit of a detail but I'm very much looking forward to the normal appraisal unfortunately it's been the drilling sequence is shut such that that's been pushed from late 2014 Thank you, Justin. That concludes my comments on the North Sea. And now we turn to Kirsten and Very pleased to be back in business there and we resume production of course right at the end of the last quarter as the chart on the right shows quite dramatically because we had just 363,000 barrels a day averaged over last quarter which was a couple of days at the end of the quarter if I remember rightly and of course we're back in business at the average Something like 73,000 in this quarter. We are then ramping up activity very quickly again, given the payment surety that we've achieved with our local sales being paid in advance and the money remitted to our international bank accounts. We offered the guidance there for the average of the year, a bit of an order year with that with unfortunately the precautionary shutdown that we had to do in second quarter. We've had a slight uptick in the prices in our sales in the last quarter and we've managed to get it up to $45 a barrel. Of course that's still well below international market prices and as I mentioned in my opening slide we continue to work hard to get our oil back into international markets or connected to international prices in some manner but without giving up the payment and surety that we think is of very high value in this part of the world. With that I will Pass the floor over to my colleague Birgitte wishing her many happy returns and she will give you more information on the financials.