Charges in Kurdistan cause DNO to slide into the red



DNO, a Norwegian oil and gas company with a focus on the Iraqi autonomous region of Kurdistan, does not expect to be paid for its exports out of Iraq this year, adding further pressure to its already strained finances.

The company yesterday revealed second-quarter earnings plunged into the red as it renegotiated its most important production contract with the Kurdistan Regional Government (KRG).

DNO recorded a loss of 176.2 million krone(Dh109.5m) on sales of 155.4m krone. This contrasts with a profit of 162.9m krone in the second quarter last year.

The company was hit by retrospective charges arising from the renegotiation of the production-sharing agreement for its share in the Tawke field in Kurdistan, its prime asset. Production also declined, after a long-running dispute over oil payments between the KRG and Iraq's central government resulted in a renewed halt to exports out of Kurdistan. DNO pumped about 17,000 barrels per day (bpd) in the second quarter at Tawke, down from about 43,000 bpd a year earlier.

Exports have since resumed but DNO is not expecting a repeat of last year's windfall when the finance ministry in Baghdad opened its purse strings to dish out payments for exported Kurdish oil. The Norwegian company received 500m krone for such exports last year, said Helge Eide, the managing director. "We don't expect that this year," he said.

DNO merged with the UAE's RAK Petroleum last year after insufficient payments out of Iraq had exhausted its finances.

While revenues have improved, most of the money it receives is from crude sold into Kurdistan itself.

Nevertheless, there is optimism at DNO. "If you look at the first quarter in isolation, it doesn't look good at first glance. But if you look behind the figures, it is not all that bad," said Mr Eide.

Despite losses in the second quarter, the company posted a profit of 131m krone for the first half of the year. The company is on track to increase production at Tawke to 100,000 bpd by the end of the year, said Mr Eide, and production costs have fallen.

The reimbursements to the KRG are coming to an end, meaning future earnings will be unencumbered by one-off charges.

DNO's share-buyback programme is continuing apace, with the company currently holding 9 million newly acquired shares.

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GP3 qualifying, 10:15am

Formula 2, practice 11:30am

Formula 1, first practice, 1pm

GP3 qualifying session, 3.10pm

Formula 1 second practice, 5pm

Formula 2 qualifying, 7pm

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Bio

Born in Dibba, Sharjah in 1972.
He is the eldest among 11 brothers and sisters.
He was educated in Sharjah schools and is a graduate of UAE University in Al Ain.
He has written poetry for 30 years and has had work published in local newspapers.
He likes all kinds of adventure movies that relate to his work.
His dream is a safe and preserved environment for all humankind. 
His favourite book is The Quran, and 'Maze of Innovation and Creativity', written by his brother.

COMPANY PROFILE

Company name: Blah

Started: 2018

Founder: Aliyah Al Abbar and Hend Al Marri

Based: Dubai

Industry: Technology and talent management

Initial investment: Dh20,000

Investors: Self-funded

Total customers: 40

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Company name: Hoopla
Date started: March 2023
Founder: Jacqueline Perrottet
Based: Dubai
Number of staff: 10
Investment stage: Pre-seed
Investment required: $500,000

If you go

The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at. 
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.   

Company profile

Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices

MATCH INFO

Tottenham Hotspur 1
Kane (50')

Newcastle United 0

'Of Love & War'
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Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

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Starring: Robert Downey Jr, Chris Evans, Scarlett Johansson, Chris Hemsworth, Josh Brolin

4/5 stars 

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Co-founders: Arto Bendiken and Talal Thabet
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Industry: AI
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Funding: About $1.7 million
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Friday
Real Sociedad v Villarreal (10.15pm)
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Saturday
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Girona v Malaga (10.15pm)
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Sunday
Espanyol v Leganes (8.15pm)
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Getafe v Sevilla (10.15pm)
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How Beautiful this world is!
Grand slam winners since July 2003

Who has won major titles since Wimbledon 2003 when Roger Federer won his first grand slam

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Rafael Nadal 16 (10 French Open, 3 US Open, 2 Wimbledon, 1 Australian Open)

Novak Djokovic 12 (6 Australian Open, 3 Wimbledon, 2 US Open, 1 French Open)

Andy Murray 3 (2 Wimbledon, 1 US Open)

Stan Wawrinka 3 (1 Australian Open, 1 French Open, 1 US Open)

Andy Roddick 1 (1 US Open)

Gaston Gaudio 1 (1 French Open)

Marat Safin 1 (1 Australian Open)

Juan Martin del Potro 1 (1 US Open)

Marin Cilic 1 (1 US Open)

RESULT

Valencia 3

Kevin Gameiro 21', 51'

Ferran Torres 67'

Atlanta 4

Josip Llicic 3' (P), 43' (P), 71', 82'

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1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat

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Power: 611bhp

Torque: 620Nm

Transmission: seven-speed automatic

Price: upon application

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Founders: Dr Noha Khater and Rania Kadry
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Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
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Director: Michael Sarnoski

Rating: 4/5

The specs: 2019 Audi A8

Price From Dh390,000

Engine 3.0L V6 turbo

Gearbox Eight-speed automatic

Power 345hp @ 5,000rpm

Torque 500Nm @ 1,370rpm

Fuel economy, combined 7.5L / 100km

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Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)

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Started: 2023
Founders: Abdulaziz bin Redha, Dr Samsurin Welch, Eva Morales and Dr Harjit Singh
Based: Cambridge and Dubai
Number of employees: 8
Industry: Sustainability & Environment
Funding: $200,000 plus undisclosed grant
Investors: Venture capital and government

ODI FIXTURE SCHEDULE

First ODI, October 22
Wankhede Stadium, Mumbai

Second ODI, October 25
Maharashtra Cricket Association Stadium, Pune

Third ODI, October 29
Venue TBC

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Director: Bradley Cooper

Starring: Bradley Cooper, Carey Mulligan, Maya Hawke

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