I guess we're ready to open this meeting. Welcome to DNO's second quarter earnings call. My name is Jostein Løvås. I am the Communications Manager of DNO, and I will share some practical information. All participants in this meeting are muted by the organizer and will not be able to unmute themselves, chat or share their screens. We will start with a brief presentation of the second quarter 2021 results by Executive Chairman, Bijan Mossavar-Rahmani, and CFO Haakon Sandborg. After which we will open up for questions. Managing Director, Bjørn Dale, Chief Operating Officer, Chris Spencer, Exploration Director, Nicholas Whiteley, Head of Group Accounting, Batun Haxhimehmedi, and Investor Relations Manager, Gudmund Hartveit, are also present on the call. If you want to pose a question, please raise the tiny virtual hand on top of your screen. If you are chosen by the organizer, you will be notified on your screen that you are allowed to unmute, after which you will have to remember to unmute yourself, too. With that, I leave the stage to the Executive Chairman. Good afternoon to those of you in Europe. Good morning to those in the United States. We've timed this meeting to allow as many of our shareholders and analysts across several continents to participate as is possible under the circumstances. My colleagues and I are spread out across several countries, mostly in Norway, but in other locations as well. Our hope had been, and I'm sure yours as well, that pandemic conditions would have allowed us to do this physically rather than virtually. Here we are again with another virtual meeting. I see we are close to 90 participants in the session. Thank you for joining us. As we've done always, both virtually in the last year and a half or longer since the pandemic, and before that through our regular meetings, Haakon and I will go through the slides quickly that were released this morning, and then have an opportunity to, he and I and my other colleagues, to give it more color, but also to try to respond to as many of your questions as we can. As you see from this cover of our presentation, we're celebrating our 50th anniversary as an oil and gas company. We are Norway's oldest oil and gas company, and we have been in continuous operation for the last 50 years. It's quite a milestone, and one with which we are proud and, of course, those of us in the presentation today have only been along for the ride in the last decade or decade and a half. We've had many predecessors who have contributed to the history of the company, and we recognize their contributions to the DNO's operations and DNO's success over its history and to its longevity. Before I go into the slides, just a quick comment. The story of DNO and DNO's operations and results in the last year and a half, is not very different than that of the industry overall. The industry, of course, was hit by the pandemic, the collapse in demand, the collapse in oil prices. Our first response as an industry, and DNO included, was to protect our balance sheets, to cut costs, to cut dividends in most instances, and to scratch our heads a little bit about the headwinds we were facing, including the growing interest in and concern about climate change and what role the industry should play in addressing some of those challenges, and what each company can do strategically, tactically and otherwise. We were engaged in some of the same actions and some of the same thought processes as our peers, largest, medium size, across the oil and gas sector globally. With time, of course, conditions of the market have changed. Demand picked up. OPEC+ was able to raise and stabilize prices, which has meant that we've been able to repair and then to begin to strengthen our balance sheet as DNO. Again, very similar story to that of the industry overall. We expect this to continue. We were, and our peers in Kurdistan, as well as other companies operating in some of the developing countries, were hit by non-payment problems, building up arrears. In Kurdistan, our arrears in terms of several months of entitlement and override payments not having been made for the period in the latter part of 2019, 2020, built a very substantial arrears for DNO, which is now being paid down, so that has a bit of a multiplier effect in that our receipts from Kurdistan moving forward will have a component, and has had a component of arrears payments, which means the payments will be higher than what the underlying production numbers would suggest. That's positive. The number is still large, but it's through payments. Over the last several payment cycles, we're now down to something just over $200 million. I think it's $214 million in principal arrears, and we hope to continue to chip away at that in the coming months and perhaps reach an accommodation with the government to accelerate those payments. Of course, that would be very welcoming, and it would be another means by which we will continue to strengthen our balance sheet and our results as well, and allow us to do more. The challenges of COVID, again, aren't over. The challenges posed to us as a company and as an industry involve the safety and security, but importantly, the health of our teams that are on the ground, whether offshore or onshore. That takes up a lot of our efforts to make sure our people are safe. Knock on wood, we've been successful in managing that process. While occasionally there have been COVID cases, we've moved quickly to contain them and have not had any major illnesses or deaths across the company, and that's obviously a great priority for us in terms of protection of our colleagues and our staff and our contractors. The COVID challenges to supply chains globally continue. This has meant delays in some projects, higher costs in other projects. We try to, again, address those the best we can. That overhang continues, and with the Delta variant and perhaps other variants totally out of our control, we will have to remain vigilant and diligent in managing the COVID-related challenges for the foreseeable future. That remains, again, a cloud over all of our heads, not just in the oil and gas industry, but in our private lives and across so much of the global economy. Going to our operational highlights for 2021. Again, we've shown our production in Kurdistan and the North Sea since the first quarter of 2020, and effectively, the numbers have held pretty steady. The lower darker green represents Kurdistan. That's held pretty steady. North Sea has had some movements up and down, but really no surprises and no significant changes to our production volumes. The gross Tawke license production has averaged just over 110,000 barrels a day in the second quarter. It is essentially flat, down this tiny bit from Q1. The net interest, DNO's net interest, has been a robust 84,000, 85,000, 83,000 bbl a day of production, which is very substantial, of course, for a company of our size. Our North Sea assets contributed almost 10,000 barrels a day of oil equivalent per day in the second quarter. That was down from just over 15,000 BOEPD in Q1. Much of that due to planned maintenance and infill drilling, in Norway, and in non-operated fields. We ride those numbers up and down depending on the operators' decisions and actions with respect to maintenance and other activities that on a quarterly basis may move the numbers around a bit. We expect that our Tawke license operated production, our guidance remains at about 110,000 barrels of oil a day in 2021 for the year. North Sea production we expect will recover in the second half of the year. We're giving a production guidance on a net-to-DNO basis of about 13,000 bbl of oil equivalent per day. Next slide, please. Of course, Haakon will go over the financial results in much more detail in his section, but I just want to touch on a couple of financial highlights, and I think those bar diagrams on the right of this slide tell the story. In the pandemic year, our operating profit obviously was down. It was negative, but we've now had two consecutive quarters of operating profits that have held essentially steady in the $60 million range. That's been obviously a positive. We have reduced our bond debt. We're chipping away at our bond debt. Reduced it by about $100 million in Q2, following a partial redemption to bring bond debt down to $700 million. In terms of our receipts from Kurdistan, for both our entitlement production, our override, and payment towards our arrears totaled almost $160 million in Q2. That led to an exit cash balance of just over $450 million at the end of Q2. Our net interest-bearing debt is just shy of $400 million, which is the lowest level since the fourth quarter 2018. Also, another important figure is the $57 million we received just this week from Kurdistan. It's an after-quarter payment, but it just speaks to the continuing strong cash coming in from Kurdistan in the $55 million, $60 million a month rate, which again, is a significant figure for a company of our size, and it continues to help improve our results, and it continues to build and strengthen our balance sheet. Again, the arrears figure now is, after this last payment, is $214 million in terms of the principal amount of those arrears. The next slide shows our Kurdistan operations. In Q2, as I indicated, the gross operated production level was 110,000 bbl a day, of which Peshkabir, the Peshkabir field in the license, represented 63,000 barrels of oil per day. Slightly up from the first quarter. Tawke, just over 47,000 bbl a day, down slightly from the first quarter. We're actively drilling new wells at Peshkabir. We have five wells scheduled this year, and that program is well underway, but we've also been doing workovers and other well interventions at existing wells in Peshkabir, which again, have resulted in this robust number and slightly improving number in terms of Peshkabir's contribution. On the Tawke side, there have been some delays in approvals of work programs. We're trying to work through those, and to be able to get back into drilling of new wells at Tawke, the Tawke field. The lack of drilling of new wells has meant that Tawke production has been trending downward given the natural field decline. Although we have arrested that somewhat through our Peshkabir gas to Tawke field gas reinjection campaign, which incidentally we put into place probably four years ago, long before the current climate change concerns and actions by other companies. We did so because we don't like to flare, and we felt that the investment would also help provide additional reservoir support, pressure support for Tawke, and that has been, in fact, the case. We've also been doing workovers and interventions at Tawke. We'll be doing some sidetracking. We've been able to do quite a bit at Tawke, even in the absence of additional drilling of new wells, which we expect will pick up as soon as the approvals are in place. We'll see more activity at the Tawke field, hopefully towards the end of the year and going into next year. Some of these delays and deferrals in government approvals of our work program and budgets has meant that we will be deferring around $50 million net to DNO of 2021 spending into 2022. Our capital program and budget will go down by around $50 million from what we'd expected for 2021. It's also meant that some production that we'd hoped we'd be able to record this year will be deferred into 2022 as well. In the North Sea, I already referred to the reduction in our share of production from our North Sea assets. Notwithstanding that drop in production during the summer, we are very actively drilling in the North Sea, including two appraisal wells on previous discoveries and three exploration wells, the first of which has already been drilled and led to a 2021 discovery. We are very active in the North Sea. In addition to the appraisal and the exploration wells, we've been drilling and have planned additional development wells, four at Fenja and six infill wells at Ula, Oda, Tambar and the Brage fields. The Bergknapp discovery has been undergoing drill stem testing and now is undergoing sidetracking. The 2021, 2022 exploration and appraisal drilling in our North Sea core areas and more detail as to our interest in those wells and our expected gross volumes, and a sense as to what's unrisked of resources we are targeting through this drilling program. Those numbers are, again, they're unrisked resources, but they speak to our ambition and to our view of the prospectivity of these permits and the targets of our wells. Again, my colleague, Nicholas Whiteley, is here. If there are specific questions about the specific wells, we can try to address those, for those of you who might be interested in doing so. The final slide for this portion gives some information about the Brage development, which we had flagged previously. We said we are trying to meet the 2022 PDO submission target for Brage. We are moving aggressively and robustly ahead with that with our partners. We've made a development concept selection to tie this back to and use as a host, the Equinor-operated Åsgard facilities. We feel that's what is the lowest cost, fastest turnaround option and would allow us to meet the PDO submission targets of 2022 and get the field on production by the middle of the decade. We're targeting initially 22,000 barrels of oil equivalent per day and the DNO interest in Brage is 50%, and we are also the operator. With that, I turn to Haakon and the financial discussion in more detail, please. Haakon? Good. Thank you, Bijan. Hello, everybody. Welcome again to this earnings call. My task now is to give you a quick summary of the main Q2 financials. As normal, we start with these key figures. As you can see, revenues increase now from $170 million in Q1 to $184 million for the second quarter. This increase was, as you know, driven by stronger oil and gas prices. We had a partly offset then by reduced revenues because we had lower production in the North Sea and also we had oil under-lifting in Q2. If you look at revenues on a business unit level, Kurdistan revenues were thereby up by $18 million to $141 million in Q2. Again, mainly on the higher oil prices. For the North Sea business unit, the revenues were down by around just under $4 million to $43 million in the quarter. That was primarily on the lower production and the under-lift for this period. As Bijan has discussed, the lower production in the North Sea was mainly due to the planned shutdown for maintenance at the Marulk and Alvheim gas fields. We are now happy to confirm that the North Sea production will recover in the second half of this year following this maintenance program. We show you here the netback metric we like to follow. This is an after-tax cash flow before working capital changes. The netback this time for this quarter increased to $153 million. That was primarily due to good operational results again, but also another additional $16 million higher tax refunds than we had in Q1 this year. To the right, we see the operating profit. It was $61 million, a bit down from the previous-quarter. That was mainly due to higher expense exploration and impairment charges. I will come back to that shortly. Next one, please. Here we show our P&L in more detail, and you see the Q2 numbers to the left on the slide. Here we see the increase in revenues from Q1 to Q2 that I have discussed. If we go further down on the P&L, under cost of goods sold, the lifting costs in Kurdistan increased by $4 million from various workovers and field work. We see that the movement in underlift is almost at the same level as we had in Q1. We see that we have DD&A depreciation primarily reduced by $4 million from the previous quarter. That reduction comes from lower North Sea production, and with those movements, we have a fairly stable cost of goods sold from Q1 into Q2. Going on further down on the cost side, expense exploration increased as mentioned in Q2. That is primarily and mainly due to purchase of seismic data. Sort of an investment, if you want, that we have expensed. It's a positive as we see it. We also have impairment charges of $12.6 million. That is a revised cost estimate for the Oselvar decommissioning. That is the background for the impairment we have taken this time. As mentioned, Q2 operating profit thereby amounted to close to $61 million. You may wonder why we have a higher net finance expense this time in this quarter. That is mainly around the partial redemption of the DNO02 bond. Effects of that, also some effects from our estimate changes we have made on the payment of the KRG arrears. You also see that tax income is increased now. That comes from higher exploration expenses and the tax effects of the impairment on the Oselvar project. All in, we deliver another strong quarter with an increase in our net income to $56.7 million. As noted in the bullet points, we also now have a material North Sea underlift position of 1.1 million barrels at the end of Q2. This will be realized or reversed, if you want, going forward. The timing of that will depend on a quite dynamic lifting schedule for our various producing fields. They tend to move around and vary from quarter to quarter. Of course, we do expect this to be realized next half-year and then maybe some will slip into next year. Next one, please. No, sorry, go one back. I was a bit too quick. I wanted to mention the year-to-date P&L to the right on this slide. Just to be brief on that, we have basically recovered from the weak market conditions that we had last year. We have a $76 million increase in revenues, that's divided by the sustained high production in Kurdistan and the higher oil and gas prices that we have seen so far this year. We also have a year-to-date a significant reduction in our cost of goods sold. That comes mostly from lower estimated DD&A charges per barrel in Kurdistan this year, and also reductions from the lower North Sea production. We have significantly reduced impairments, they contribute to a very substantial increase in our year-to-date operating profit to a solid level of $127.3 million. After finance and tax, we are pleased to then now be able to show a year-to-date net profit of $108.1 million, and that compares to the loss we had for the same period last year. A big improvement and a big reversal now. Good. Move on, please. This is a look at our operational spend. Something we like to discuss on a quarterly basis, the outlook for that and the movements. As Bijan mentioned, we have adjusted our guidance for the operational spend from $700 million that we talked about for the last quarters, to a level of $650 million for the full year in 2021. As noted, this is due to the $50 million reduction of projected spend in Kurdistan, and coming from the delays that we have seen in securing government approvals of our work programs and budgets. The revised operational spend level is now split between Kurdistan with $200 million and the North Sea with $450 million. The North Sea number is shown before the North Sea tax refunds, as you are aware of. You might notice that compared to previous guidance, there is some change in the projected spend level between each category of the operational spend. I would say that the reduced CapEx in Kurdistan is the main item. As we can see on the quarterly spend graph to the right, the year-to-date operational spend is at $300 million. Roughly. We have an additional spend of $350 million and plan now for the second half of the year. Quite an active program continuing on into the second half. Moving on to the next and my favorite topic, the operational cash flow strengthened substantially in Q2 to a solid level of $160 million. Here we had a strong pre-tax profit adjusted for the non-cash items. In addition, we had positive working capital changes in a total of about $38 million for this quarter. The working capital change came primarily from increased trade and other payables for the North Sea business unit. In Q2, we have received the three monthly payments from the KRG compared to the two monthly payments we received in Q1. As you may recall, we had a build-up in receivables in Q1 and a negative working capital change in that quarter. Just to point out that certainly these working capital movements or changes are also important behind the increased operational cash flow in Q2 from the first quarter. Just looking at the graph here on the slide, we have also $31 million of North Sea tax refunds that add to our cash flow in Q2. If you look at the spend items we have here, we have been able to finance or fund the investments of $93 million from cash flow and also finance from cash flow the various finance outflows totaling $121 million. That includes the bond redemption of $100 million that we have mentioned. All that has been done from cash flow with only a modest reduction in our substantial cash balances. I think in my mind, the fact that we have cash flow-financed most of our activities and finance items in the second quarter is a key achievement. Not shown here, but if we summarize cash flow for the first half of this year, we are pleased to show an operational cash flow over $228 million for the first six months. We continue now to expect strong cash flow through this year, supported as before by higher production and the current oil and gas prices. We do expect now a further $130 million in North Sea tax refunds in the second half of this year, which of course is a significant addition to the cash flows expected for the full year. Next one and the final slide for our capital structure. As has been discussed, we are clearly making very good progress on strengthening our balance sheet as we have retired bond debt last year of $160 million, followed up now as you have seen by another $100 million of bond redemption in Q2. Doing all that and still maintaining intact our solid cash balances. On this basis, as you can see in the middle of the graph here, our net interest-bearing debt has been reduced to $396 million. With our bond maturities, we have two bond facilities outstanding. The maturities are out two to three years. With this sort of net debt level seen in combination with our high production and our strong cash flow generation, I think this debt structure is very manageable for DNO. Happy to note that we have also strengthened our equity ratio this year, as you can see on the right-hand side here, and that comes through our much improved profits and thereby retained earnings year-to-date. We are now at the level of 34% on the equity ratio. To finish up, we are on a good track here. We have been able to further strengthen our financial position, and thereby we see a good foundation, a good platform for future growth in the company. I hope we're on time. Yeah, it's not too bad. I'll finish up there. I think we're now ready to go into a Q&A session. You want to head up that, Jostein? Yes. We'll take questions. Please raise your hand as described with the virtual hand in the top of your screen. I guess there is a question here from Carl Fredrick Pedersen. He's one of the analysts following us on a regular basis. We'll try to unmute you, and please remember to unmute yourself before posing the question. Hi, guys. Thank you for taking my question. The first question is, what level of production, or how do you think about production looking into 2022 and beyond, kind of capital allocation between the North Sea and Kurdistan into 2022? That's the first question. The second question is regarding your balance sheet as you are generating quite a lot of cash in the current oil price environment, how are you thinking about buying back bonds and also dividends? Alternatively, aggressive growth, for example, through M&A? Good. Let me respond to the first part of that, then I'll ask Haakon to respond to the second one. In terms of giving guidance on production in 2022, I think it's a little early to do that. I refer to some of the delays we've had in getting our programs and budgets approved, and mention that some of that production and spending will be deferred into 2022. I don't expect, certainly on the Kurdistan side, major surprises. Although, as you know, we also have pending approval of the Baeshiqa license, which we had hoped to have brought on early production before the end of this year. There's been a delay in approvals for that project. The timing of those approvals will govern when the contribution from Baeshiqa will come, and that's an important part of our growth story in Kurdistan. At Peshkabir, we will continue. There's no reason to think that our strategy with respect to Peshkabir development will change. Tawke, of course, again, once the Tawke budgets and work program is approved, we expect to see more activity at Tawke and an uptick in Tawke production. Again, it's premature now to give guidance on that. Towards the end of the year, I expect we'll have a better picture. Haakon did mention, and I alluded to the fact that we are doing other things at Tawke besides drilling of new wells through well interventions and the workovers. Those costs are typically categorized in the OpEx category rather than the CapEx category. There has been some shuffling of spend in these different categories. Both with the re-injection program and the other interventions, we've been able to hold Tawke to arrest, not fully arrest, but significantly slow down the natural field decline at Tawke, which in the past has been on the order of 15%-20% a year. Our team has done a terrific job in slowing that down significantly through well-by-well interventions and monitoring. I expect once we start drilling additional wells, we'll see a better recovery of Tawke production. Again, it's premature to give you much guidance on that. In the North Sea, some of the, again, our activity is focused on existing fields, existing wells, infill drilling and so on, and others are through exploration. The exploration, of course, cycle is a much longer one. Give us an opportunity to come back to you a bit later this year with some better guidance for next year. Haakon, on the bonds and debt. Yeah. Hi, Teodor Sveen-Nilsen, thanks for that question. Well, on the bond side, as you know, we have been very active as a bond issuer for many years. We have been proactively, through the years, looking at managing our maturity profiles, and we've been often buying back bonds in the market ahead of time and also doing refinancings well ahead of the maturities. That's just a fact that that's what we have done and managed to, I think, successfully for many years. That will be one consideration to look at. We have the DNO02, but that is maturing only two years out. We have some time to think about that, and the DNO03 bond is three years out. Happy to see that these bonds have traded up quite nicely now in the secondary market. The DNO02 is trading above the call price, $103.6 or so. The DNO03 is trading even higher at 105. Hopefully, that will speak for continued improvement in our coupon rate if we do more bond replacements going forward. I think, yeah, as before, we are very actively following the bond market. I won't be able to comment on any commitment to do anything just now. We do follow our strategy of actively being proactive in looking at the opportunities to switch maturities and buy back bonds. On the dividend side, we had a bit of a stop in the dividends last year because of what happened with our industry and our company from an earnings perspective. We went back to the AGM and our shareholders this year in June, or was it May? Asked for another authorization split in two. One authorization for this coming half year, second half year of this year, and one other authorization for dividend in the first half of next year. We do have the structure in place. We tend to look at it period by period, and if we are in a good position then we are satisfied with what we see of our capital structure and our earnings outlook, cash flow outlook to follow up on that dividend program. It's sort of done on a half-yearly basis now with our authorization from the AGM. This is something I am sure that the board of DNO will be considering through the second half of this year and the first half of next year, given what we have in place. Thank you. The last part of the question was regarding potential M&A or that kind of growth trajectory. Is that something that you are looking at pursuing, or is the organic opportunities that's within your company covering your CapEx now? That is hard to beat, and you can follow up or you want to answer? Answer is yes. Yeah. Thank you. Okay. Okay. The next question comes from David Round. Please introduce yourself. Thanks. It's David Round from Stifel. Just a clarification, please, if you don't mind. Did you say you don't expect to drill another well at Tawke until the end of 2021 at the earliest? I wonder, is there potential for that to change and for those wells to come back into the program if you did receive approval? Maybe you could just give us a bit of information on what exactly are you trying to get approval for here. The approval is for a certain remaining elements of our work program and budgets. As you may know, if you've been following developments in Kurdistan, there's been some changes in the Ministry of Natural Resources, a new minister, a new team. They've taken some time to look at their strategies, looking at the sector, looking at some of their priorities, and in the process they have held back approvals of work programs and budgets for, as I understand it, for not just for DNO, but for a number of the companies. They've been looking at strategies with respect to flaring. In fact, very recently, all the companies were informed that flaring in Kurdistan has to stop. This has, of course, consequences for companies in terms of spending, in terms of their field development programs. It's less of an issue for DNO because, again, we put into place ourselves, starting around four years ago, a Peshkabir field flaring reduction and gas reinjection project in Tawke. We've never had much gas flaring at Tawke, but we've had some at Peshkabir. For us, this is an easier target to meet quickly and without much additional capital expenditure or time. For our other companies for whom this would be a substantial change in how they approach their field development programs, budgets, and spending. There's a lot going on, and this has meant that some programs, whether about spending or tendering and contracting other things, have not been approved as rapidly as we have been proposing them. Once our programs are, and elements of it that are still outstanding are approved, we'll hit the accelerator. We've always been, as DNO, a fast mover, once we have an opportunity and have the green light, we'll hit that accelerator, and we'll start. We know how to drill wells quickly and cheaply in Kurdistan and have programs in place for even cheaper next-generation wells to reduce the timing and the cost. We're set to go. Again, it's been an issue in terms of government policy and bureaucracy and administrative structures being put into place by a new ministry leadership structure in Kurdistan. Again, once those elements fall into place, we have a green light, both we and our partner of longstanding in Kurdistan on the Tawke license, Genel Energy, we move fast, and we're prepared to do so. Just we're waiting for the green light, the light to turn from amber to green, and then we'll hit the accelerator and proceed with the drilling. Okay. Just maybe, just any chance that green light could be before the end of the year? What sort of visibility do you have over that process at the moment? Well, we are in regular contact with the ministry, but as are all the other companies operating in Kurdistan. It's really a question for the ministry to decide which of the problems are easier ones to solve more quickly. Some of the companies, again, will have to go back and scratch our heads and consider how they want to respond to the new requirements in terms of flaring cessation or substantial reduction, because that could be quite expensive. When DNO and Genel proposed to do the Peshkabir to Tawke reinjection project, we're looking at well over $100 million of spending, and there was no external pressure on us to do so from anyone. We just thought it was the right thing to do, both in terms of saving that gas and storing it at Tawke for future generations to use it for future uses, also getting more gas out of Tawke. For us, I think the issues we have to be addressed and approved with respect to the Tawke license are much simpler and much easier to address by the government through its approval and for our partnership, our joint venture, to act on. We're in constant contact with the ministry and the government, and hopefully we will be able to address this because it's in everyone's interest that we drill those wells and proceed with our full development program. Okay, great. Thank you very much. I believe we are nearing the end here, so I'll give participants or attendees a last chance of asking a question. If there is no one curious about anything else, then I think we will wrap it up shortly. Okay. It seems like we have made it all very clear and answered all questions. With that, I think we should just thank you for attending this video conference, and we look forward to the next quarter, or we're already way into it, so next quarter's presentation. Okay, bye then. Thank you. Bye-bye.