DTNOY (DTNOY) Q3 2026 Earnings Report, Transcript and Summary

Jostein, thank you, and good morning to everyone. I'm pleased to join you for our third quarter results presentation. 50 is not only Birgitte's birthday, but it's also our share price target. So we are ambitious and optimistic about the opportunities ahead for DNO. We've had a very strong quarter, and my colleagues will describe both the operational and financial contributions to that. But we've had a number of strong quarters in the past several years, and we're very proud about the success of the company and our growth and importantly, how we have continued to build and optimize our portfolio, and we have a lot of very exciting projects ahead, which we will touch on. So welcome to this meeting. And I will now turn to Chris, to give our operational updates.

Thank you very much, Bijan, and good morning to everyone from beautiful Oslo. Could we move to the first slide, please? Very positive quarter again for DNO. On the operational side, the big number, of course, is the return of our Kurdistan business unit to strong production. But there is, of course, the North Sea with these high oil and gas prices that is still stealing the show and is the driver behind the record revenues again from the quarter with us, topping $1 billion in 1 quarter. That leads, of course, to some very attractive financial figures for the quarter, which Birgitte will go into in further detail later in the presentation. As those who follow the company have noticed, we've had a very high level of business development activity in the quarter. We are very active on the business development side. I guess the difference in this past quarter is a lot of that has played out in terms of -- in public since we were made offers for listed companies. And as you are aware, we have been keeping our discipline and keeping to our strategy with those approaches. Similarly, on the portfolio optimization side, we divested our Cote d'Ivoire business, and that has been a very nice piece of business for DNO since we entered the country in -- almost exactly 4 years ago. On the North Sea side, the production was similar to previous quarter. We're now pretty much through the, what they call, summer maintenance season and guiding 86,000 barrels of oil equivalent for the full year. And that's a bit higher than we expected at the beginning of the year. So we're very pleased with that. All in all, as I said, a very strong quarter and easy decision for the Board of Directors, I think, to maintain the dividend. This being the sixth quarter that we've had the dividend at that level. If we move on to the next, really reflecting that the Sava acquisition we made last year is really delivering, and that is what you see on that first slide. So -- and you'll see in the rest of my slides. So we have, as we promised, delivered on the operational and financial synergies in the North Sea on the back of that acquisition, which has resulted in very strong asset performance, acceleration of developments and reduced cost of capital. It has, of course, also importantly, put our company in a position to benefit from this year's high oil and gas prices. All of this leaves us better placed for further growth than I think we have ever been in my 9 years with the company. And because of that, we thought it would be helpful to spend a few minutes on this slide to explain to the market the way we think about further growth for DNO and to reassure everyone that, in doing so, we're not getting carried away with commodity prices. We are very focused, as always, on delivering shareholder value. So it's a simple strategy, I think, for further growth. North Sea remains, as we've been saying, we've got our target for 100,000 barrels of oil equivalent by 2030. And as always, we're pushing ourselves to achieve it at least in that time. We have a very wide portfolio and a very good team that is working to optimize that portfolio together with the operators and obviously, where we operate directly with the assets. And there's a huge opportunity set as the figures there represent. So we are working very hard to deliver the organic growth. There's also been a lot of bolt-on M&A, which I'll come back to in the final point, which is a key part of our North Sea work. Kurdistan, we have rather than a large number of smaller assets from a DNO interest perspective. We have the two huge fields of Tawke and Peshkabir. Tremendous resource potential remaining there. And we're very happy to be back to drilling and looking at potentially taking on a third rig this year. And so we are very focused on monetizing those remaining reserves and in particular, sort of converting the juicy resources we have in the Tawke PSC into reserves. The big upside, I think, in Kurdistan remains the access to international prices combined with the surety of payments or certainty of payments, as we've written here. And that remains a key focus for us in the -- in management of DNO in the months ahead. Then the third piece of this strategy is using our new business development activities. And I touched on the portfolio optimization part. That's been a regular feature of our North Sea business and it's provided backdrop to some of the good news we put out today as well. But we're also looking, as was evidenced by the bid for Capricorn, for new positions as we seek to build the company and grow to the future. We are going to be disciplined. We have been disciplined and we'll continue to be disciplined when we're looking for these third legs. We are very challenging to ourselves in terms of where to go. The grass is always greener on the other side of the road, as we say in English, and that's something to be very careful about. So we look to our competitive advantages, whether that's technology, relationships, proximity to existing operations, government relations. And that is the areas that we seek to target. And then as we move forward, we always, the old adage that you look at 10 opportunities to get 1, I guess that in this competitive oil and gas space is the sort of minimum ratio. So we do a lot of investigations and maintain that discipline importantly, which, as I touched on the last slide, has been evident to the market with the discipline we've exercised in our business development work over the past few months. So I hope that is helpful to everybody as far as the company. Moving from strategy, we now move to the news of the day. Alongside our results this morning, we put out announcement of two pieces of news. First of all, our Kjottkake project. Fantastic project to be now involved in the -- leading in many respects. We were operator of Kjottkake -- of course, drilled the exploration well in 2025, and sidetracked it immediately to appraise, which laid the groundwork for this great partnership we've developed with Aker BP, where they have taken on the operatorship during the development phase, benefiting from the relationships and order book they had with their suppliers and their standardization drive. We are on-track for a record fast development in the Norwegian Continental Shelf. Very exciting for us, and it's passed a very significant milestone just this week with all three of the partners confirming that they're sanctioning the project, so-called Decision Gate 3 in the old project terminology. Of course, this has also been an area where we've been optimizing our position through M&A, which is touched on this slide. And we are now pleased to be able to have a small interest in the key hub in the area, the Gjoa field, because we have numerous tiebacks that we're involved in that we will be producing through Gjoa in the years ahead. If we move to the next slide, please. The second piece of news is very gratifying results from the Afrodite appraisal well, very positive. That's a discovery that's been on the shelf. I've been wondering what to do about that for some time, decided that appraisal was needed before commercialization. And we entered it through a swap transaction with Equinor earlier in the year. And so very, very pleased that the appraisal there has been successful. I think it said in the news that we -- yes, we more than doubled the resource estimate. And now, Kvitebjorn, which was -- which is a hub where we have an interest through the swap transaction and was maturing. I mean, this whole area is going to be revitalized now in the next few years. Atlantis is moving rapidly to sanction. And with Afrodite and Carmen there, if we -- with the stimulation and fracking technologies around, we are optimistic that this will be a very interesting area in the years to come. Thank you. Next slide, please. Of course, the news today is just the latest on the conveyor belt that we are developing in the North Sea. And this is a busy slide. I'm not proposing to go through every bullet point, but we are -- we've been seeking over the past few quarters to communicate how we will be building our business and achieving our 100,000 barrels a day target. Notably, 6 months ago, my colleague, Morten Grini, from the North Sea business joined us to do a bit more of a deep dive through a few of these projects, including, of course, Kjottkake. This time, we're just trying to give you a bit better portfolio view of how we've already delivered. So we've delivered since last -- beginning of last year, 5 projects into production. Those are now producing about 18,000 barrels a day. In the middle then, we have now 6 projects under development following the final investment decision on Kjottkake. Those total around 40 million of resources that we expect to be booking as reserves at the end of the year. And the next line of projects are coming through to deliver another 40 million. And those are the ones that are coming up to project sanction in the near future. So a very busy time for us, but this is not -- when I say busy time, this is the normal. We will be pushing through this type of project activity every year as we move forward. And so it's a very fun business to work in. I'll leave you to study the individual projects in more detail. As I said in the last quarters, we've also provided more information on many of them. But I just want to add that the reserves and resources increases that we have on this slide are the -- are not the whole picture in terms of our reserves replacement. We also have positions in important hub assets such as Martin Linge, Ekofisk, and these assets are also -- we're also working hard with the operators to generate additional reserves and resources in those assets. And that's how we plan to grow and replace reserves as we go along. If we go to the next slide, then we are well-known as an exploration company in the North Sea these days, I think, punching above our weight with respect to the number of wells we drill, but also importantly, the commercial success rate. And of course, that is then the next step in this story that we are really -- we continue to fill the project funnel through organic efforts, through the drill bit, primarily complemented by selective asset transactions. So, so far this year, we've had what we're classifying as three appraisal. There's always -- in my world, there's more sort of appraisal of discoveries and appraisal that's more outreach. I've talked about Afrodite at length already. I would like to highlight the Symra, where this is another great piece of business in the North Sea where development well -- we took the opportunity when drilling a development well to have a small pilot into a nearby structure, which we expected to contain resources or hoped such that we call it appraisal. But that's a smaller volume, but very high-value barrels because it's so easy to produce through the existing infrastructure there. Then we -- and then the other point just to note here is a bit of a detail, but I'm very much looking forward to the Norma appraisal. Unfortunately, it's been -- the drilling sequence is such that, that's been pushed from late 2026 into early '27. And so, you'll see a phasing impact on our exploration expenditure in '26 and '27 as a result of that. But that's one of our operated projects, so we're all looking forward to that well. Thank you, Jostein. That concludes my comments on the North Sea. And now we turn to Kurdistan and -- very pleased to be back in business there. And we resumed production, of course, right at the end of the last quarter as the chart on the right shows quite dramatically because we had just 363,000 barrels a day averaged over last quarter, which was a couple of days at the end of the quarter, if I remember rightly. And of course, we're back in business at average something like 73,000 in this quarter. We are then ramping up activity very quickly, again, given the payment surety that we've achieved with our local sales being paid in advance and the money remitted to our international bank accounts. We offered the guidance there for the average of the year, a bit of an odd year with that -- with, unfortunately, the precautionary shutdown that we had to do in the second quarter. We've had a slight uptick in the prices in our sales in the last quarter. We've managed to get it up to $45 a barrel. Of course, that's still well below international market prices. And as I mentioned in my opening slide, we continue to work hard to get our oil back into international markets or connected to international prices in some manner, but without giving up the payment surety that we think is of very high value in this part of the world. With that, I will pass the floor over to my colleague, Birgitte, wishing her many happy returns, and she will give you more information on the financials.

Thank you very much, Chris. Thank you, Bijan. Good morning, everyone. As already mentioned, it's a very good morning, and we're very proud to present another very strong quarter for DNO. Our revenue in the third quarter was $1.023 billion, up 34% from the last quarter. The increase from Q2 is mainly driven by higher sales volumes and net production in both North Sea and Kurdistan. About 90% of the revenue stems from the North Sea in our third quarter. If we look at year-to-date, our revenue is just above $2.4 billion, 143% increase compared to the first 9 months of 2025. Operating profit ended at $641 million, up 46% from Q2. Operating profit in Q3 was $222 million, as you can see on the graph. Higher realized gas prices, partly offset by lower realized oil prices and a small net loss on commodity hedges in the North Sea and higher sales prices, as Chris mentioned, in Kurdistan had a very positive effect on our operating profit. Our tax expense in the quarter was $494 million, increased mainly due to higher taxable income, which is a positive. Net profit in the quarter was $101 million, representing a 22% decrease compared with the second quarter. Again, if we look at the year-to-date, our net profit is $235 million, up from $41 million in the first 3 quarters of 2025. Can we move to the cash flow? Thank you. Our cash position moved from $550 million to just above $1 billion during the third quarter. Operational cash flow was $660 million, supported by robust earnings, partly offset by negative working capital movements as prices increased during September and consequently increased the receivables as of quarter end. We had 2 tax installments in Norway totaling $136 million in Q3. These installments are the first related to the 2026 expected profits for our NCS business and expected tax installments on the NCS for the fourth quarter will be around $230 million. Of course, that number will be influenced by any currency fluctuations as the tax is paid in NOK. Given our strong results, there will also be a substantial tax overhang into the first half of 2027. Net investing activities were $129 million. We had $198 million in asset investments and decommissioning, offset by $68 million in net inflow from disposals and license transactions. We further had the cash -- net cash inflow from financing activities as we drew upon our prepayment facilities related to BD activity, partly offset by payment of dividend and interest, which left the cash at quarter end just north of $1 billion. Can we move to the last slide, please, Jostein? Our total balance sheet is now for quarter end around $6.8 billion, of which PP&E represents about 50%, just $3.3 billion as of quarter end. Our net debt ended at $232 million, a substantial reduction from last quarter, mostly driven by cash from operations. However, worth mentioning here is that our net debt does not include the payable income tax of $938 million as reported in our books. Our equity shares remained quite stable at around 21%, and with total equity of $1.42 billion, we are well within our bond covenants. And on the back of the strong balance sheet and cash generation, the Board has decided to distribute NOK 0.375 per share, as Chris mentioned, and this is the same level as the last quarter. To sum it up, record revenue and operating profit, very strong cash flow and corresponding reduction in net debt. Remember, however, the strong results lead to high taxes, which will be paid in the coming quarters. Then I think we move on to the Q&A session. Jostein Løvås: Thank you, Birgitte, for the excellent presentation. [Operator Instructions] It seems like Teodor Sveen-Nilsen is already ready to ask the first question.

Congrats on a strong quarter. A few questions from me. The first one, that is on Kurdistan. What kind of initiatives are you doing or pursuing to realize prices closer to international pricing? Second question, that is on NCS. Which parts of the ConocoPhillips portfolio do you think is most attractive? And have you looked at it? Third question, that is on Kjottkake, which I understand will be called [ Lyra ] going forward. Could you -- positive to see that you have taken FID. Could you just remind us of the CapEx -- the total CapEx for the project and also estimated first oil?

Let me take on the first question with respect to Kurdistan. As you well know, the situation in the Middle East, in particular the challenges of moving crudes to the Strait of Hormuz have -- and other political and geopolitical developments in the region have opened up other routes for exporting and necessitate other routes for exporting Iraqi oil and other regional oil to other outlets. As you probably know, I'm sure you know, a lot of the southern Iraqi oil is now moving up by truck to the pipeline to Turkey, but also to Syria for export. And as new export routes develop and new export arrangements develop, this opens up opportunities for other producers in the region to also seek other outputs. So there are possibilities now that have opened up for movements of oil to the Mediterranean to Syria, which was closed before the -- during the turmoil and the civil war there. But with political stability there, other routes are opened up for Iraqi oil, including Kurdistan oil and our oil to move west through Syria. We're looking at those possibilities and opportunities. There is, again, more oil going into Turkey from the south and the new pipelines are being put in place. So there's a lot more activity now to find export routes from Iraq and from Kurdistan, which, as you know, is landlocked to markets facing west rather than just the Turkey option and the option of moving southern oil through the Persian Gulf. So we're very actively looking at how else we can move our crude. In the meantime, we have been able to raise the value or the pricing of our crude into the local market in Kurdistan. We started the year at just a little bit above $30. We're going to the fourth quarter -- we're into the fourth quarter with $45 prices, which is a almost 50% increase in our price just in the past 10 months. We are actively looking at other arrangements, which will move that figure up even higher. So it's a combination of a bigger push on our part to get better prices, and not just higher prices, but the certainty of payments that is key to us, and we continue to push for that and get paid in dollars into our international bank accounts. So all of the challenges of the past in terms of getting paid on time, we're getting not just paid on time, we're getting paid in advance. The payments are received and barrels equivalents of payments received are then loaded up into our buyers' tankers. So that remains the key to us. And we've been prepared over the past year or more to trade higher nominal prices or lower certain prices. And that has been key, not just as a financial matter for us, but it's also allowed us to have revenue, which we then used to drill more. We're the most active driller in Kurdistan by far. I think right now, we may be the only IOC that's drilling. As Chris mentioned, we have two rigs, heavy rigs drilling deep wells. We have our own Sindy rig, which is used for workovers, but also for drilling shallow wells into that Jeribe formation, which we're producing from Tawke for some time. And we now have the go ahead to negotiate a third well. So we're drilling very, very actively, and these wells will give us a longer term -- both longer-term production increase, but also as prices are raised, we have more oil that we can immediately put into the market at those prices. So certainly, payment has been also a very basic part of our strategy -- our growth strategy in Kurdistan. So we're very bullish and I think our price trajectory over the past year is showing that we were able to achieve higher prices as we go, and we will push even harder to do that. On the ConocoPhillips asset, that is obviously a very important asset, and it's an important acquisition. And we understand a number of companies have looked at it. Obviously, we're looking to grow in Norway, as Chris has mentioned, and we look at assets, large and small. And medium size, we had the best acquisition last year. The small assets were the best -- from our point of view, medium-sized assets to acquire, we successfully acquired them. We acquired the small assets, not just assets, production and reserves, but a very strong team that the small had put together and we inherited that team and they're the backbone of our Stavanger office, working with our own team from the pre-acquisition, and we're showing very, very good results, as Chris has indicated. And at the time we made the acquisition of small, our price was a full and fair and strong price. I think the market looked at it and said that DNO has paid a bit of a premium for that. So we were happy to do that to succeed with the acquisition. But with these higher prices for oil and gas this year, I think we've pretty much covered our acquisition. We're very pleased with it. And those assets have a long life. And we're going to continue to look at acquisitions and assets and where we can make them work, we will make them work. Chris, do you want to add to that?

I think that covers it. I just -- I can pick up on Teodor's last question with respect to Kjottkake, which is going to take me a while to get used to the new name, Teodor. I think we -- on the CapEx side, it's in the sort of $20 to $25 a barrel of oil equivalent CapEx range. And that was what we guided, I think, at the beginning -- probably in the Q1 presentation where Morten was here that we expected for the portfolio of FIDs this year. And similarly, across all those projects, we'll be doing the sort of $40 to $45 a barrel breakeven. On the production side, of course, we hope we are planning for the first half of 2028. So it's a very exciting week at the moment because immediately on the back of the final investment decision, big contracts are being awarded, rigs are being committed. And I'd just like to take this opportunity to recognize the project teams, Aker BP. I'm pleased to say there's a number of DNO staff in key positions there as well, done a brilliant job to get the project from discovery to final investment decision in less than 18 months. And let's not forget all the hard work ahead together with the service companies and drilling companies that we have. And we are continuing to push for acceleration even in this next phase of the project. So we're hoping that we can meet the target of Q1 2028, Teodor, but the official guiding is H1.

Great. It's helpful for those of you who are not Norwegian speakers. So Kjottkake is a hard one to learn to pronounce. But also I understand Kjottkake in Norwegian means meatball. So goodbye meatball and hello Lyra.

Lyra.

I'm not sure what Lyra means, but meatball was a bit awkward, as was Kjottkake. So good to move on.

Chris, when you say $20 to $25 per barrel, how many barrels are you assuming? Is that 37?

Yes, the 37 is the gross number, I think now, which is -- I'm not sure all of that is bookable at the end of it. It gets a bit confusing, Teodor, because not all of that will meet the SPE classification requirements at the end of the year. So the reserves and resources, 37 is reserves and resources. And then we also have a very nice upside in Kjottkake, which is probably still going to be classified as contingent resources. So those are the numbers -- yes, there's a few numbers to track on that, but 37 is the gross that we used in the decision documentation anyway.

Okay. And just one final quick question for me. I'm not sure, Birgitte, if you mentioned it, but what do you expect as cash tax payment in Q4?

I briefly mentioned it. It's $230 million expected cash tax in Q4. But of course, that will rely on the currency fluctuations as we pay it in NOK. But that's actually a combination of the tax installments and also the final part of the 2025 tax, which has a payment in November. So it's a combination of the 2026 first or second installments and the latter part of the 2025 tax. Jostein Løvås: Thank you, Teodor. Now there's a chance for others to chime in as well. There's no one on the list at the moment. But if you want to, you can push the -- oh, here we have from [ Bard ]. I believe you'll have to introduce yourself and click the unmute button.

This is Bard. I'm an investor in DNO. I just -- and of course, very a great report and happy birthday. I just want to know if you can expand a little bit on the dividend policy going forward, or if you are planning to do some share buybacks.

Good. I should also mentioned, I think Birgitte, she says she's 50, she looks younger. But I just want to also note that this is DNO's 55th birthday this year. So the company -- she was not born when DNO was formed, I was. But we're very pleased that DNO is now 55, and I look forward to not personally, but someday, the company being celebrating its 100th birthday. And there are not very many international oil companies around that have survived 55 years. So it's a proud year for DNO. And we've survived because we've taken care of our shareholders, our investors, our bondholders over the years. And our dividend policy, again, is very shareholder-friendly. We do realize, as a company, as a Board, that when we set this dividend level, maybe 5 or 6 quarters ago, our dividend yield at the time was around 10%. It's now down to about 5%. The good news is that the share price has moved up as much as it has, and that's obviously important for shareholders too. In addition to just the dividend distribution, the share price matters hugely. And I recognize that as a shareholder in the company myself. We do have, as you say, several tools in terms of creating shareholder value or distributing shareholder value, dividends, share buybacks, which we've done in the past, but also special dividends. I think to the extent that our share price reflects higher oil and gas prices, and it does in part, but not exclusively so part of the -- again, the rise in our share price over the last years has had to do with our success in operations and how we manage the business. But oil prices and gas prices may come down. When they will come down, when, by how much and for how long, no one knows. But we've been careful not to overreach to increase shareholder distributions and have to pull them back. We're conservative and cautious and thoughtful in terms of what we do. And so we thought we would retain the current dividend amount through the end of the year, and we will revisit this as we do every quarter at the Board level, and we will decide into the 2027 whether to maintain our dividend level at the level that it is or to buy back shares or to do a special dividend distribution or some combination at that time. But we are very mindful of the importance of providing dividend distributions to our shareholders and have had a pretty steady record. And I think since we started the dividend distributions, but also buybacks, we've returned, I believe, after the current quarter or the third quarter dividend distribution sometime in November, we will have distributed, I think, over $600 million to shareholders during this period. So we have a track record that's important and it's impressive and it's what we want to maintain. Beyond that, I have nothing more to say. No decision has been made. But we are focused like a laser, not just in terms of our responsibility and our commitment to our bondholders, but also to our shareholders. And you can certainly be assured of that. Jostein Løvås: Thank you. Yes. Well, we have one other question here from an analyst, Tom Erik Kristiansen.

Congratulations on the good results. Just thinking big picture and looking a bit forward here, Norway obviously has become very large already. How are you thinking about the M&A market and further growth? Are you thinking that you are at a fine size now compared to earlier being too -- maybe too heavy on the development side after having a significant exploration success? Or are you equally eager to acquire production? Second question is, with all that exploration success in the history of the recent years, are you looking to increase even the drilling program, even though you probably have the most active one if you compare to market cap on the [ Bors ], compare yourself; are you looking to even expand that or not?

Well, we'll keep drilling. We haven't changed our mind and our approach to our portfolio. Chris described that in some detail in that larger slide and then in terms of our operations. We're going to keep drilling. As you say, we've been a very successful driller in the North Sea. We'll keep drilling. We've been a successful acquirer in the North Sea, we'll keep looking at acquisition opportunities. And we are branching out elsewhere. We've made two approaches in the past several months, one in Kurdistan and one in Egypt. As Chris said, we are looking at other opportunities in other countries, and we have a short list of countries and areas where we think, as Chris mentioned, we have a competitive or comparative advantage. We're actively looking at those opportunities and involved in discussions. Some preliminary, some a bit more advanced. In terms of specific opportunities, we want to grow this company. We already had a track record of growth, and we want to continue that. So you could assume that growth and the larger size is important to us. And the company has a mandate to do so. However, again, as Chris mentioned, as we've said repeatedly, capital discipline is important. It's not growth for the sake of growth, it's growth for the sake of profitability and performance. So we can increase dividends and grow our size, and size matters. Again, the larger you are, the more you approach a credit rating, the more you're able to, again, lower your cost of capital, and that matters, too. Size gives you those opportunities. It makes it possible to do bigger deals. Governments like larger companies to come in rather than smaller ones. So there are strategic advantage to growth as well as commercial, financial, operational ones, but being careful to have capital discipline is hugely important as well. We've seen a lot of companies of our size and larger -- smaller and larger, they go belly up because they went too aggressive and didn't show capital discipline. And the fact that we were still around after 55 years, I think there have been a lot of different management groups that have been involved with DNO, a lot of people have been involved. But over time, I think and certainly, in the most recent period, we've shown that we are disciplined and we've taken care of the -- managed the assets well and grown the company and grown it properly as the last quarter and earlier quarters have shown.

One follow-up on that. Should we read that as in the context of a couple of recent years, I think every analyst has been thinking that the next acquisition is happening in Norway that we wanted to grow the base here. And maybe -- and that was the second leg to the Kurdistan business, which now is sort of firmly established and probably on valuation bigger even than Kurdistan. And then, is the third leg basically, call it -- a third base where you kind of take a significant position, is that the right way to think that that's maybe strategically even of higher importance than growing in Norway? Or you can probably do both, I guess, if you find the right deals?

I think we can -- three legs is important because it's like a stool, a two-legged stool is very stable. Three-legged stool, it's a lot more stable. And one of our legs, Kurdistan, has been challenging for reasons you know, whether it was local politics or regional challenges during the ISIS crisis, and obviously, that impacted our operations. The missile attack in 2015, obviously, affected our business. We were -- went out of production for a while. We came back very rapidly. The challenges of receivables. So Kurdistan has been great for DNO and remains a very important part of our business, but it's -- but there are challenges that we don't control, not operational ones, but political ones, security ones. For quite some time, Kurdistan carried DNO. Operations in the North Sea were started recently in terms of history of DNO, and Kurdistan allowed us to grow the business in the North Sea. And when Kurdistan was affected by the security issues and the drone attacks and challenges, the North Sea carried the company. But now, we will have a third leg so that we have even greater supports for our business and the diversification is good. We don't want to overextend ourselves by diversifying into too many places. No one company has the ability, even the largest companies in the world, the large oil companies, I think 80% of their revenues probably come from 20% of their assets or some rules. So you can't be everywhere, but we think three makes very good sense. And DNO has had in the past years, a third and fourth leg. We had a leg in Yemen, but as Yemen started to unravel, we have to shut down our business there. We retained one discovery, but that's not going to come on stream anytime soon. We don't think. But Yemen was an important leg for DNO. And I think DNO had produced a field -- a 100 million barrels in Yemen. This is -- much of this is before my time with the company. That's pretty impressive, but that leg disappeared. And we then went back to one important leg, Kurdistan. We added Norway in the North Sea as a second leg, which has become very important to us. The third one is important to us and we're pursuing it. But in looking for a third leg, we've seen other opportunities that we might be able to bring in and we're looking at those, too. I think we've maxed out at four for now. And if we do another leg, we want to make sure we strengthen that leg before we look at something else following that. Jostein Løvås: Okay. As we are fast approaching the 1-hour mark, I think there's room for one last question from [ Tobias ]. You might have to introduce yourself. Please remember to unmute yourself as well. Okay, it seems like we have -- Toby might have been on this --

Oh, we answered his question.

Yes. Jostein Løvås: Maybe we answered his question. So okay, with that, I think we will have to wrap it up. Thanks for taking part and all your questions, and we look forward to see you again in 3 months' time.

Thank you.

Thank you.