Oslo: DNO International on Thursday said UAE-based RAK Petroleum has raised its holding in the Oslo-based oil producer to 30 per cent, and added that it will report the first quarterly profit since the second quarter of last year.
The company expects net income of about 10 million crowns (Dh6 million) in the first three months, following losses in two consecutive quarters, Oslo-based DNO said yesterday. It had net income of 138 million crowns a year earlier.
Revenue will rise to about 250 million crowns from 184 million crowns a year earlier, and operating profit will be about 90 million crowns, the company said. DNO, which will release first-quarter earnings on May 11, said the financial results disclosed were based on production figures reported on April 19 and "other information available".
RAK Petroleum raised its holding in the company to 30 per cent, it said. RAK Petroleum has been buying DNO shares since last year and raised its stake to 20.5 per cent last month.
DNO last month reported a first quarter working interest production of 12,442 barrels of oil equivalent a day, up from 10,786 barrels last year.
The company has been awaiting permission to resume exports from the Kurdish region of Iraq since shipments were suspended in September as the local authority and central government discuss how producers will be paid.
DNO in February reported a larger-than-expected fourth-quarter loss, ending a second year of losses, and restated sales after an estimated $133 million (Dh488 million) in Iraqi revenue failed to materialise.
DNO's Chief Executive Officer Helge Eide said in February that the company was seeking to expand outside Iraq and would consider opportunities in eastern and northern Africa and the Middle East. RAK Petroleum has operations that overlap with DNO, according to RAK Finance Director Pierre Henri Boutry. The company is expanding in Oman, where DNO is considering entering.
DNO also said it expected to prepare and file a development plan with the authorities in Yemen this year following encouraging drilling results at Yaalen-3, in block 47, where the company holds 40 per cent. DNO said a well had encountered two oil bearing intervals in the Qishn sandstones.