Kurdistan driller DNO eyes recovery after profit plunge

DNO began ramping up spending in June following a rebound in oil prices. (Shutterstock)
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Updated 31 July 2020

Kurdistan driller DNO eyes recovery after profit plunge

  • DNO said it was considering approving several new projects off Norway by the end of 2022, including the Iris/Hades, Fogelberg and Trym South discoveries, after the country’s parliament approved tax incentives to help the industry

OSLO: Independent oil producer DNO has begun to see prospects for recovery from the impact of the coronavirus crisis after reporting a sharp fall in April-June revenue and core earnings.
DNO, with operations in Iraq’s semi-autonomous Kurdistan region as well as the North Sea, reported earnings before interest, tax, depreciation and amortization (EBITDA) of $12.9 million in the quarter, down from $176.6 million a year ago.
The decline was due to a fall in global oil prices amid the COVID-19 outbreak as well as lower output volumes as the company in March cut its spending on drilling to preserve cash, which decreased by 21 percent over the quarter to $427 million.
But in June the company began ramping up spending following a rebound in oil prices, leading to a rise in output at the start of the third quarter.
“The worst of the coronavirus pandemic hit to our business is behind us and DNO is back identifying and capturing opportunities,” DNO’s Executive Chairman Bijan Mossavar-Rahmani said in a statement.

HIGHLIGHTS

● Production in Kurdistan, Norway down 16%.

● Bumped up spending in June after March cutbacks.

● Eyes new projects off Norway amid tax incentives.

DNO’s output, 80 percent of which came from Kurdistan, fell to 89,700 barrels of oil equivalent per day (boepd) in the second quarter from 106,800 boepd a year ago, as measured on so-called company working interest (CWI) basis.
Sparebank 1 Markets, which as a “buy” recommendation on DNO’s shares, said the company had raised its overall operational spending plan to $550 million for 2020 from $520 million seen in May, which could in turn lead to higher output.
DNO said it was considering approving several new projects off Norway by the end of 2022, including the Iris/Hades, Fogelberg and Trym South discoveries, after the country’s parliament approved tax incentives to help the industry.
The Norwegian tax change could generate $140 million in refunds for the company in 2020.


Emirates launches airbridge between Dubai, Lebanon emergency relief 

Updated 14 August 2020

Emirates launches airbridge between Dubai, Lebanon emergency relief 

  • Customers of Emirates will be able to donate cash or pledge their Skywards Miles to the airline for the aid
  • Emirates SkyCargo will also provide 20 percent reduction on air freight transportation charges for approved shipments

DUBAI: UAE national carrier Emirates SkyCargo plans to ramp up its freighter operations to Lebanon with 50 flights to deliver emergency relief in the wake of the Beirut port blast that killed nearly 200 people.
Customers of Emirates will be able to donate cash or pledge their Skywards Miles to the airline for the aid, state news agency WAM reported.
The Emirates Airline Foundation will coordinate shipments of urgent food, medical supplies with NGO partners to ensure donations directly help those affected on the ground.
Emirates SkyCargo will also provide 20 percent reduction on air freight transportation charges for approved shipments, underscoring its commitment to expedite emergency relief efforts to Beirut.
“Today, the world is banding together to stand in solidarity with Lebanon, providing urgent relief and immediate recovery support to those affected by this tragic disaster,” Chairman and Chief Executive of Emirates Airline & Group, Sheikh Ahmed bin Saeed Al-Maktoum, said. 
“Emirates supports the UAE’s ongoing humanitarian efforts to support Lebanon and is committed to bolster its global emergency response to ensure that it can support organizations which provide urgent care, shelter, food and medical support to the Lebanese people,” he added. 
Emirates said that it had dispatched several charter flights carrying food, clothing and medical supplies donated by various grassroots organizations in the UAE to Lebanon.