OB:DNO

Stock Analysis Report

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Executive Summary

DNO ASA engages in the exploration, development, and production of oil and gas assets in the Middle East and the North Sea. More Details


Snowflake Analysis

Reasonable growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has DNO's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DNO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.4%

DNO

-1.7%

NO Oil and Gas

-0.9%

NO Market


1 Year Return

-65.9%

DNO

-25.9%

NO Oil and Gas

-11.6%

NO Market

Return vs Industry: DNO underperformed the Norwegian Oil and Gas industry which returned -24.2% over the past year.

Return vs Market: DNO underperformed the Norwegian Market which returned -6.4% over the past year.


Shareholder returns

DNOIndustryMarket
7 Day-8.4%-1.7%-0.9%
30 Day-10.9%-7.7%-0.8%
90 Day-31.5%-5.8%2.1%
1 Year-65.4%-65.9%-21.7%-25.9%-8.7%-11.6%
3 Year-56.2%-57.9%-7.9%-19.7%1.5%-9.9%
5 Year-49.8%-51.8%22.7%-2.6%44.1%14.8%

Price Volatility Vs. Market

How volatile is DNO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DNO undervalued compared to its fair value and its price relative to the market?

3.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DNO (NOK4.29) is trading below our estimate of fair value (NOK4.4)

Significantly Below Fair Value: DNO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DNO is unprofitable, so we can't compare its PE Ratio to the NO Oil and Gas industry average.

PE vs Market: DNO is unprofitable, so we can't compare its PE Ratio to the Norwegian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DNO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DNO's PB Ratio (0.5x) is in line with the NO Oil and Gas industry average.


Next Steps

Future Growth

How is DNO forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

69.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: DNO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DNO's is expected to become profitable in the next 3 years.

Revenue vs Market: DNO's revenue (9.7% per year) is forecast to grow faster than the Norwegian market (5.4% per year).

High Growth Revenue: DNO's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DNO's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has DNO performed over the past 5 years?

41.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNO is currently unprofitable.

Growing Profit Margin: DNO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DNO is unprofitable, but has reduced losses over the past 5 years at a rate of 41.3% per year.

Accelerating Growth: Unable to compare DNO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DNO is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (699.5%).


Return on Equity

High ROE: DNO has a negative Return on Equity (-15.42%), as it is currently unprofitable.


Next Steps

Financial Health

How is DNO's financial position?


Financial Position Analysis

Short Term Liabilities: DNO's short term assets ($1.1B) exceed its short term liabilities ($462.6M).

Long Term Liabilities: DNO's short term assets ($1.1B) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: DNO's debt to equity ratio (108.7%) is considered high.

Reducing Debt: DNO's debt to equity ratio has increased from 97.3% to 108.7% over the past 5 years.

Debt Coverage: DNO's debt is well covered by operating cash flow (36.9%).

Interest Coverage: Insufficient data to determine if DNO's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is DNO current dividend yield, its reliability and sustainability?

7.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DNO's dividend (7.41%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.52%).

High Dividend: DNO's dividend (7.41%) is in the top 25% of dividend payers in the Norwegian market (6.55%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DNO has been paying a dividend for less than 10 years.

Growing Dividend: DNO has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: DNO is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: DNO's dividends in 3 years are forecast to be thoroughly covered by earnings (5.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Bjørn Dale

no data

Tenure

US$976,800

Compensation

Mr. Bjørn Dale serves as Managing Director of DNO ASA. Mr. Dale served as Secretary at DNO ASA since 2011 and served as its Acting President. He served as Acting Managing Director and General Counsel at DN ...


CEO Compensation Analysis

Compensation vs Market: Bjørn's total compensation ($USD976.80K) is above average for companies of similar size in the Norwegian market ($USD554.46K).

Compensation vs Earnings: Bjørn's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bijan Mossavar-Rahmani
Executive Chairman9.33yrsUS$813.50kno data
Bjørn Dale
Managing Directorno dataUS$976.80kno data
Haakon Sandborg
Chief Financial Officer19.75yrsUS$557.60kno data
Ute Quinn
Group General Counsel & Corporate Secretary3.75yrsUS$548.00kno data
Geir Skau
Human Resources Director1.75yrsUS$306.60kno data
Nicholas Whiteley
Group Exploration & Subsurface Director5yrsUS$773.50kno data
Christopher Spencer
Deputy Managing Director1.42yrsUS$610.30k0.0033%
$ 135.5k
Aernout Van Der Gaag
Deputy Chief Financial Officerno dataUS$513.70kno data
Tonje Gormley
General Counsel Of Middle East1.75yrsUS$375.10kno data
Ørjan Gjerde
General Manager DNO North Seano dataUS$414.10kno data
Tom Allan
General Manager of Kurdistan Regionno dataUS$553.70kno data
Rune Martinsen
General Manager of Northno dataUS$454.90kno data

2.8yrs

Average Tenure

58.5yo

Average Age

Experienced Management: DNO's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bijan Mossavar-Rahmani
Executive Chairman9.33yrsUS$813.50kno data
Gunnar Hirsti
Director12.92yrsUS$64.00k0.036%
$ 1.5m
Lars Takla
Deputy Chairmanno dataUS$68.10k0.0031%
$ 127.2k
Elin Karfjell
Director5.33yrsUS$57.80k0.0034%
$ 139.6k
Shelley Watson
Director10.33yrsUS$57.80kno data

9.8yrs

Average Tenure

67yo

Average Age

Experienced Board: DNO's board of directors are considered experienced (9.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DNO ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DNO ASA
  • Ticker: DNO
  • Exchange: OB
  • Founded: 1971
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: kr4.131b
  • Shares outstanding: 975.43m
  • Website: https://www.dno.no

Number of Employees


Location

  • DNO ASA
  • Dokkveien 1
  • Aker Brygge
  • Oslo
  • Oslo
  • 250
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DTNO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
DNOOB (Oslo Bors)YesOrdinary SharesNONOKJan 1992
NK1ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0MHPLSE (London Stock Exchange)YesOrdinary SharesGBNOKJan 1992
DNOOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJan 1992
DTNO.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

DNO ASA engages in the exploration, development, and production of oil and gas assets in the Middle East and the North Sea. Its flagship project is the Tawke field that is located in the Kurdistan region o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:34
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.