UPDATE 1-DNO says yet to receive Iraq oil export cash
Wed Aug 19, 2009 11:48am IST
Email | Print |
Share
| Single Page
[-] Text [+]
* Operating profit falls 6 pct yr/yr, beats consensus
* Iraq oilfield producing 50,000 barrels/day, exporting most
* Export pricing, payment procedures "yet to be established"
* Repeats may sell assets to finance operations
(Adds details)
OSLO, Aug 19 (Reuters) - Norwegian oil company DNO International (DNO.OL: Quote, Profile, Research) said it has yet to receive payment for its Iraqi oil exports after posting a slightly better than expected second-quarter operating profit on Wednesday.
The first foreign oil company to drill in post-war Iraq, DNO largely failed to capitalise on its trail-blazer status because of deep rows between its partner -- the Kurdistan Regional Government -- and central Baghdad authorities over oil exports.
DNO said it was producing 50,000 barrels per day from its Tawke oilfield in Kurdish northern Iraq and exporting 45,000 and planned to maintain stable production from the field.
"Pricing and payment procedures have yet to be established for the international sales from the Tawke field," DNO said.
The company provided no timeframe for the export payments and said that in the meantime, revenues would be recorded on a net entitlement basis, applying estimated oil prices.
"When such payment procedures are in effect, DNO expects both increasing cash flow and strengthening of its financial position. In the meantime, DNO will maintain high focus on capital discipline," the company said, adding that it had access to "alternative funding, including sale of financial assets."
DNO reported an operating profit of 118 million Norwegian crowns ($19.21 million) in the three months to end-June from a 125 million crown profit a year earlier, beating an average analyst forecast for 96 million in a Reuters poll of 10 analysts. ($1=6.142 Norwegian Crowns) (Reporting by Richard Solem and Wojciech Moskwa; Editing by Jon Loades-Carter)
Thomson Reuters 2009 All rights reserved
Wed Aug 19, 2009 11:48am IST
Email | Print |
Share
| Single Page
[-] Text [+]
* Operating profit falls 6 pct yr/yr, beats consensus
* Iraq oilfield producing 50,000 barrels/day, exporting most
* Export pricing, payment procedures "yet to be established"
* Repeats may sell assets to finance operations
(Adds details)
OSLO, Aug 19 (Reuters) - Norwegian oil company DNO International (DNO.OL: Quote, Profile, Research) said it has yet to receive payment for its Iraqi oil exports after posting a slightly better than expected second-quarter operating profit on Wednesday.
The first foreign oil company to drill in post-war Iraq, DNO largely failed to capitalise on its trail-blazer status because of deep rows between its partner -- the Kurdistan Regional Government -- and central Baghdad authorities over oil exports.
DNO said it was producing 50,000 barrels per day from its Tawke oilfield in Kurdish northern Iraq and exporting 45,000 and planned to maintain stable production from the field.
"Pricing and payment procedures have yet to be established for the international sales from the Tawke field," DNO said.
The company provided no timeframe for the export payments and said that in the meantime, revenues would be recorded on a net entitlement basis, applying estimated oil prices.
"When such payment procedures are in effect, DNO expects both increasing cash flow and strengthening of its financial position. In the meantime, DNO will maintain high focus on capital discipline," the company said, adding that it had access to "alternative funding, including sale of financial assets."
DNO reported an operating profit of 118 million Norwegian crowns ($19.21 million) in the three months to end-June from a 125 million crown profit a year earlier, beating an average analyst forecast for 96 million in a Reuters poll of 10 analysts. ($1=6.142 Norwegian Crowns) (Reporting by Richard Solem and Wojciech Moskwa; Editing by Jon Loades-Carter)
Thomson Reuters 2009 All rights reserved