Good morning, and welcome to DNO's Third Quarter 2026 Earnings Call. My name is Jostein Løvås, and I am the Communications Manager here at DNO. With me today are our Executive Chairman, Bijan Mossavar-Rahmani, Managing Director, Chris Spencer, and CFO, Birgitte Wendelbo Johansen. It is a wonderful day here in Oslo. Not only are we delivering strong results, but it is also Birgitte's 50th birthday. Who would have thought. So with that, Bijan will start us off with some short introductory remarks, after which Chris and Birgitte will take you through the presentation. We will then open for questions afterwards. With that, let me hand over to Bijan.
Jostein, thank you, and good morning to everyone. Pleased to join you for our third quarter results presentation. 50 is not only Birgitte's birthday, but it is also our share price target. So we are ambitious and optimistic about the opportunities ahead for DNO. We have had a very strong quarter, and my colleagues will describe both the operational and financial contributions to that. But we have had a number of strong quarters in the past several years, and we are very proud of 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 update.
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 it 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 one 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 have 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 public since we made our 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 Côte d'Ivoire business, and that has been a very nice piece of business for DNO since we entered the country almost exactly four years ago. On the North Sea side, the production was similar to the previous quarter. We are now pretty much through what they call summer maintenance season, and are guiding 86,000 barrels of oil equivalent for the full year. And that is a bit higher than we expected at the beginning of the year. So we are very pleased with that.
All in all, as 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 Sval Energi acquisition we made last year is really delivering, and that is what you see on that first slide, and you will see in the rest of my slides. 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 nine years with the company. 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. 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. 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. There's a huge opportunity set as the figures there represent. We're working really 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. We're very happy to be back to drilling and looking at potentially taking on a third rig this year.
We're very focused on monetizing those remaining reserves, and in particular to 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. That remains a key focus for us in the management of DNO in the months ahead. 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 a backdrop to some of the good news we've 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 will continue to be disciplined when we are 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. That is something to be very careful about. We look to our competitive advantages, whether that is technology, relationships, proximity to existing operations, government relations and that is the areas that we seek to target. As we move forward, we always, the old adage that you look at 10 opportunities to get one, I guess that in this competitive oil and gas space is the sort of minimum ratio.
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 have exercised in our business development work over the past few months. I hope that is helpful to everyone who follows 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 Kjøttkake project, a fantastic project to be not only involved in, be leading in many respects.
We were operator of Kjøttkake, of course, drilled the exploration well in 2025 and sidetracked it immediately to appraise, which laid the groundwork for this great partnership we have 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 has passed a very significant milestone, just this week with all three of the partners confirming that they are sanctioning the project, the so-called decision gate three in the old project terminology.
Of course, this has also been an area where we have 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 Ula field, because we have numerous tiebacks that we are involved in that we will be producing through Ula in the years ahead. If we move to the next slide, please. The second piece of news was very gratifying, results from the Afrodite appraisal well. Very positive about a discovery that has been on the shelf, or the operator 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. 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. Now, Wisting, which is a hub where we have an interest through the swap transaction and was maturing, this whole area is going to be revitalized in the next few years. Atlantis is moving rapidly to sanction. With Afrodite and Carmen there, 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.
This is a busy slide, I am not proposing to go through every bullet point, but we have 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, six 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, Kjøttkake. This time, we are just trying to give you a bit better portfolio view of how we have already delivered. So we have delivered, since the beginning of last year, five projects into production. Those are now producing about 18,000 barrels a day. In the middle then, we have now six projects under development following the final investment decision on Kjøttkake.
Those total around 40 million of resources that we expect to be booking as reserves at the end of the year. 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. So it is a very fun business to work in. I will leave you to study the individual projects in more detail. As I said, in past quarters, we have 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 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 are also working hard with the operators to generate additional reserves and resources in those assets. That is 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 the next step in this story, that we continue to fill the project funnel through organic efforts, through the drill bit, primarily complemented by selective asset transactions. 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 called 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.
The other point just to note here is a bit of a detail, but I'm very much looking forward to the Carmen appraisal. Unfortunately, the drilling sequence is such that that's been pushed from late 2026 into early 2027. So you'll see a phasing impact on our exploration expenditure in 2026 and 2027 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. Now we turn to Kurdistan and very pleased to be back in business there.
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. Of course, we're back in business at averaging to 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're offered the guidance there for the average of the year, a bit of an odd year 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, and we've managed to get it up to $45 a barrel. Of course, that's still well below international market prices. 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. Morning, everyone. As already mentioned, it is a very good morning, and we are very proud to present another very strong quarter for DNO. Our revenue in the third quarter was $1,023 million, 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, a 143% increase compared to the first nine months of 2025. Our 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. Higher sales prices, as Chris Spencer 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 thing. 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 three quarters of 2025. We move to the cash flow. Thank you. Our cash position moved from $550 million to just above $1 billion during the third quarter.
Our 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 two tax installments in Norway, totaling $136 million in Q3. These installments are the first related to the 2026 expected profits for our NCS business. Expected tax installments on the S in 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 a 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. We move to the last slide, please, Jostein Løvås. 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 for 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 ratio remains quite stable of around 21%, and with total equity of $1.42 billion, we are well within our bond covenants.
On back of this 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, that strong results lead to high taxes, which will be paid in the coming quarters. Then I think we move over to the Q&A session.
Thank you, Birgitte, for the excellent presentation. Yes, I guess I should say to you all that if you want to pose a question in the Q&A session, you will have to push the Raise Your Hand button on the top of your screen and remember to unmute yourself. It seems like Teodor Sveen-Nilsen is already ready to ask the first question. So please, Terje, go ahead.
Good morning. Thanks for taking my questions, and 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 Kjøttkake, which I understand will be called Lyra going forward. Positive to see that you have taken a FID. Could you just remind us of the total CapEx for the project and also estimated first oil?
Terje, let me take on the first question with respect to Kurdistan. As you well know, the situation in the Middle East, particular the challenges of moving crudes through the Strait of Hormuz, 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 am sure you know, a lot of southern Iraqi oil is now moving up by truck through the pipeline through Turkey, but also through Syria for export. As new export routes develop and new export arrangements develop, this opens up opportunities for other producers in the region to also seek other outlets. So there are possibilities now that have opened up for movements of oil to the Mediterranean through Syria, which was closed during the turmoil in the civil war there.
But with political stability there, other routes have 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 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 there 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 into the fourth quarter.
We're into the fourth quarter with $45 prices, which is an 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 in through our international bank accounts. So all of the challenges of the past in terms of getting paid on time, like we're getting not just paid on time, we're getting paid in advance. The payments are received, and barrels equivalent to payments received are then loaded up into our buyers' tankers.
So that remains key to us, and we've been prepared over the past year or more to trade higher nominal prices for 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've 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 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 rig.
So we're drilling very actively, and these wells will give us 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 a payment has been also a very basic part of 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 the 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 are 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. We inherited that team, and they're the backbone of our Stavanger office, working with our own team from the pre-acquisition. We're showing very good results, as Chris has indicated. At the time we made the acquisition this fall, our price was a full, fair, and strong price. I think the market looked at it and said that DNO paid a bit of a premium for that. 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, and we're very pleased with it. Those assets have a long life. 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 can pick up on Terje's last question with respect to Kjøttkake, which is going to take me a while to get used to the new name, Terje. I think on the CapEx side, it's in the sort of $20-$25 a barrel of oil equivalent CapEx range. 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. Similarly across all those projects, we'll be doing a sort of $40-$45 a barrel breakeven. On the production side, of course, 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.
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. Let's not forget all the hard work ahead together with the service companies and drilling companies that we have. We are continuing to push for acceleration even in this next phase of the project. So we're hoping that we can beat the target of Q1 2028, Terje, but the official guiding is H1.
Good. Listen, it is helpful for those of you who are not Norwegian speakers, Kjøttkake is a hard one to learn to pronounce. But also understand Kjøttkake in Norwegian means meatball. So goodbye meatball and hello-
Lyra-
I am not sure what Lyra means, but meatball was a bit awkward as a Kjøttkake, so good to move on.
Can I just, Chris, when you say $20- $25 per barrel, how many barrels are you assuming? Is that 37?
Yeah, the 37 is the gross number I think now, which is, I am not sure all of that is bookable at the end of it. It gets a bit confusing, Terje, 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. Then we also have a very nice upside in Kjøttkake, which is probably still going to be classified as contingent resources. There's a few numbers to track on that, but 37 is the gross that we used in the decision documentation anyway.
Okay, thanks. Just one final quick question from 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.
Sure. Understood.
That is actually a combination of the tax installments and also the final part of the 2025 tax, which has a payment in November. So it is a combination of the 2026 first or second installments and the latter part of the 2025 tax.
Understood.
Thank you.
Thanks.
Thank you, Teodor. Now there is a chance for others to chime in as well. There is no one on the list at the moment, but if you want to, you can push the. Here we have from Bård. I believe you will have to introduce yourself and click the unmute button.
Yes, hello. This is Bård. I am an investor in DNO. Of course, 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. Thank you.
Good. I should also mention, I think Birgitte, she says she's 50. She looks younger. I just want to also note that this is DNO's 55th birthday this year. 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, maybe not personally, but someday the company celebrating its 100th birthday. There are not very many international oil companies around that have survived 55 years. It's a proud year for DNO. 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 five or six 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, too, 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, 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. They will come down.
When, and by how much, and for how long, no one knows. But we've been careful not to overreach to increase shareholder distributions and then 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 amounts 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 2027 whether to maintain our dividend level at the level 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.
I think since we started 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 at the end that's important and that's impressive and it's what we want to maintain. Beyond that, I have nothing more to say. No decision's 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. Thank you.
Thank you. Well, we have one other question here from an analyst, Tom Erik Kristiansen. Please go ahead, Tom Erik.
Yes. 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 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 continent 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're 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. 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, and operational ones.
Being careful to have capital discipline is usually important as well. We've seen a lot of companies of our size and larger, smaller and larger, go belly up because they went too aggressive and didn't show capital discipline. The fact that we're 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 different 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 the 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. That was the second leg to the Kurdistan business, which now is firmly established and probably on valuation bigger even than Kurdistan. Is the third leg basically, call it a third base somewhere where you take a significant position? Is that the right way to think that that's maybe strategically even of higher importance than the growing in Norway? 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 isn't very stable. A three-legged stool is a lot more stable. 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 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 there are challenges that we don't control Not operational ones, but political ones and security ones. For quite some time, Kurdistan carried DNO.
Operations in the North Sea were started recently in terms of the history of DNO, and Kurdistan allowed us to grow the business in the North Sea. Then Kurdistan was affected by the security issues and the drone attacks and the challenges. The North Sea carried the company. Now we will have a third leg so that we have even greater support 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 largest oil companies, I think 80% of their revenues or profits come from 20% of their assets or some rule. So you can't be everywhere, but we think three makes very good sense. 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 had 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. I think DNO had produced the equivalent of 100 million barrels in Yemen. 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 and the North Sea as a second leg, which has become very important to us.
A third one is important to us and 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'd want to make sure we strengthen that leg before we look at something else following that.
Okay. Yes, we are-
Perfect. Thank you.
fast approaching the one-hour mark. I think there is room for one last question from Tobias D.F. You might have to introduce yourself. Please remember to unmute yourself as well. Okay, it seems like we have a problem. It might have been a mis-
Or we answered his question.
Yeah. 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 three months' time. Thank you.
Thank you.