Norway's DNO Q3 revenue beats on higher realized oil prices

Overview

• Norway oil and gas operator's Q3 revenue rose sharply, beating analyst expectations

• Net profit for Q3 rose 21% quarter-on-quarter

• Production surged 61% from Q2, driven by Kurdistan restart and higher prices

Outlook

• DNO expects 2026 North Sea production to average about 86,000 boepd

• Company expects Kurdistan gross operated production to average 50,000 boepd in 2026

• DNO targets North Sea production of 100,000 boepd by 2030

Result Drivers

• KURDISTAN RESTART - Production increase driven by resumption of Kurdistan operations after four-month shutdown

• HIGHER REALIZED PRICES - Co benefited from higher realized oil prices in both North Sea and Kurdistan

Company press release:

Key Details

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 NOK22.50, about 6.6% below its October 28 closing price of NOK24.10

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 4 three months ago

Reuters Recommended Reads

• Oct 28 - Norway's Equinor Q3 adjusted operating income nearly doubles on higher output, gas prices

• Oct 29 - Norway's Aker BP Q3 EBITDA beats analyst estimates; maintains annual production forecast

• Oct 27 - Baker Hughes Q3 net income down by a third on Chart deal costs despite revenue, adj EPS beat

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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.)