OB:DNOOil and Gas
DNO (OB:DNO) Stock Grapples With Record Profit And Kurdistan Risk
DNO stock went into today’s Q2 release with a mixed setup. The price sat at NOK18.22 after a modest 7-day gain and a small 3-month decline, while the P/E of 19.4x already priced in a fair amount of optimism. Then the company reported record quarterly revenue of US$760.5m and net income of US$83.4m despite heavy disruption in Kurdistan.
The market now has to decide whether this first clean year of profitability and strong free cash flow justify that richer multiple or if emotion has run ahead...