Norway's DNO Q2 revenue misses estimates, hurt by Kurdistan shutdown

DNO ASA

13/08/2026 06:17

Overview
Norway oil and gas operator's Q2 revenue rose 21% qtr/qtr but missed analyst expectations
Q2 net profit increased 65% qtr/qtr to $83 mln, driven by North Sea output and prices
Company announced possible offer to acquire Genel Energy after quarter end

Outlook
DNO raises 2026 North Sea production guidance to 85,000 boepd from 82,000 boepd
Company expects Kurdistan production to stabilize at pre-shutdown levels if security holds

Result Drivers
NORTH SEA PRODUCTION - Co said strong North Sea production and high commodity prices offset impact of Kurdistan shutdown
UNHEDGED PRICE GAINS - Co said largely unhedged North Sea output captured upside from strong oil and gas prices driven by continued Middle East crisis
KURDISTAN SHUTDOWN - Co halted production and drilling in Kurdistan as precaution after regional air strikes, with limited operations resuming late in quarter

Company press release: ID:nGNE9nTbDP

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$760.50 mln
$850.71 mln (4 Analysts)
Q2 Net Income
 
$83.40 mln
 
Q2 EBIT
 
$439 mln
 
Q2 Free Cash Flow
 
$289.50 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
Wall Street's median 12-month price target for Dno ASA is NOK22.00, about 24.9% above its August 12 closing price of NOK17.61
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)