DNO Falls on Q2 Results

By John Lee.
Shares in DNO International, the Norwegian oil company with interests in Iraqi Kurdistan, were down 4% at lunchtime on Wednesday following the announcement of second quarter results:
DNO International ASA, the Norwegian oil and gas company, today released results for the second quarter of 2012 with operating revenues of NOK 155 million, down from NOK 712 million in the first quarter.
The Company recorded a net loss of NOK 176 million for the second quarter, driven, as previously disclosed, by a reconciliation of past accounts in Kurdistan and application of the fiscal terms and conditions of the existing Production Sharing Contract covering the Tawke license as from 1 June 2012. Under International Financial Reporting Standards (IFRS) rules, the full impact of the reconciliation since 2007 has been taken in this quarter.
Production during the second quarter stood at 23,234 barrels of oil equivalent per day (boe) on a company working interest basis, down from 42,116 boepd in the first quarter. Lower production was caused by a halt in exports from Kurdistan and also from the West Bukha field offshore Oman following a pipeline blockage. Exports from Kurdistan have been resumed in August at the rate of 40,000 barrels daily and the Oman repairs have been completed, with the pipeline under commissioning.
DNO International has maintained its strong cash position with NOK 1,638 million at the end of the second quarter, up from NOK 1,602 million in the first quarter of the year.
The Company’s first half 2012 results remained positive with net profit of NOK 131 million on operating revenues of NOK 867 million.