DNO announced Tuesday morning that the company suspends all production in Yemen due to the deteriorating security situation in the country.
The market reacts by sending the stock down 6.3 percent to 10.45 dollars.
– The company states in the message that production before the shutdown was 950 barrels per day, only 34 percent of the level in Q4. It indicates that production in the 1st quarter has been lower than expected, writes Swedbank analyst Teodor Sveen Nilsen told Reuters in an update.
– We cut therefore the total production estimate to DNO Q1 by 2 percent , continued the note.
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