Executive Summary
DNO ASA engages in the exploration, development, and production of oil and gas assets in the Middle East and North Africa.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued 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
-12.2%
DNO
-6.0%
NO Oil and Gas
-5.1%
NO Market
1 Year Return
-63.1%
DNO
-22.0%
NO Oil and Gas
-5.6%
NO Market
Return vs Industry: DNO underperformed the Norwegian Oil and Gas industry which returned -22.3% over the past year.
Return vs Market: DNO underperformed the Norwegian Market which returned -5.1% over the past year.
Shareholder returns
| DNO | Industry | Market | |
|---|---|---|---|
| 7 Day | -12.2% | -6.0% | -5.1% |
| 30 Day | -28.0% | -14.4% | -5.3% |
| 90 Day | -36.0% | -12.9% | -3.2% |
| 1 Year | -62.1%-63.1% | -17.4%-22.0% | -0.7%-5.6% |
| 3 Year | -12.6%-16.0% | 19.9%4.9% | 25.1%9.4% |
| 5 Year | -52.1%-54.0% | 34.0%7.5% | 52.3%18.3% |
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
2 weeks ago | Simply Wall St
DNO ASA Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now3 weeks ago | Simply Wall St
Are DNO's (OB:DNO) Statutory Earnings A Good Guide To Its Underlying Profitability?1 month ago | Simply Wall St
Can We See Significant Institutional Ownership On The DNO ASA (OB:DNO) Share Register?Valuation
Is DNO undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DNO (NOK6.81) is trading below our estimate of fair value (NOK82.76)
Significantly Below Fair Value: DNO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DNO is good value based on its PE Ratio (10.2x) compared to the Oil and Gas industry average (15.9x).
PE vs Market: DNO is good value based on its PE Ratio (10.2x) compared to the Norwegian market (14.5x).
Price to Earnings Growth Ratio
PEG Ratio: DNO is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: DNO is good value based on its PB Ratio (0.6x) compared to the NO Oil and Gas industry average (0.8x).
Next Steps
Future Growth
How is DNO forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
8.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DNO's forecast earnings growth (8.7% per year) is above the savings rate (0.7%).
Earnings vs Market: DNO's earnings (8.7% per year) are forecast to grow slower than the Norwegian market (18.5% per year).
High Growth Earnings: DNO's earnings are forecast to grow, but not significantly.
Revenue vs Market: DNO's revenue (1.8% per year) is forecast to grow slower than the Norwegian market (3.4% per year).
High Growth Revenue: DNO's revenue (1.8% 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 (17.1%).
Next Steps
Past Performance
How has DNO performed over the past 5 years?
60.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DNO has high quality earnings.
Growing Profit Margin: DNO's current net profit margins (7.6%) are lower than last year (42.7%).
Past Earnings Growth Analysis
Earnings Trend: DNO has become profitable over the past 5 years, growing earnings by 60.4% per year.
Accelerating Growth: DNO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: DNO had negative earnings growth (-79.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-18%).
Return on Equity
High ROE: DNO's Return on Equity (6.3%) is considered low.
Next Steps
Financial Health
How is DNO's financial position?
Financial Position Analysis
Short Term Liabilities: DNO's short term assets ($1.2B) exceed its short term liabilities ($623.0M).
Long Term Liabilities: DNO's short term assets ($1.2B) do not cover its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: DNO's debt to equity ratio (91.4%) is considered high.
Reducing Debt: DNO's debt to equity ratio has increased from 40.2% to 91.4% over the past 5 years.
Debt Coverage: DNO's debt is well covered by operating cash flow (35%).
Interest Coverage: DNO's interest payments on its debt are not well covered by EBIT (0.6x coverage).
Balance Sheet
Inventory Level: DNO has a high level of physical assets or inventory.
Debt Coverage by Assets: DNO's debt is covered by short term assets (assets are 1.1x debt).
Next Steps
Dividend
What is DNO's current dividend yield, its reliability and sustainability?
5.83%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DNO's dividend (5.88%) is higher than the bottom 25% of dividend payers in the Norwegian market (3%).
High Dividend: DNO's dividend (5.88%) is low compared to the top 25% of dividend payers in the Norwegian market (6.42%).
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: With its reasonable payout ratio (61.5%), DNO's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DNO's dividends in 3 years are forecast to be well covered by earnings (25% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Bjørn Dale 0
US$774,100
Compensation
Mr. Bjørn Dale serves as Managing Director of DNO ASA. Mr. Dale served as Secretary at DNO ASA since 2011 and served as its Acting President. He served as Acting Managing Director and General Counsel at DN ...
CEO Compensation Analysis
Compensation vs Market: Bjørn's total compensation ($USD0.00) is below average for companies of similar size in the Norwegian market ($USD565.18K).
Compensation vs Earnings: Bjørn's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 8.7yrs | no data | no data | |
| Managing Director | 0yrs | US$774.10k | no data | |
| Chief Financial Officer | 19.1yrs | US$429.40k | no data | |
| Group General Counsel & Corporate Secretary | 3.1yrs | US$541.20k | no data | |
| Group Exploration & Subsurface Director | 4.3yrs | US$559.40k | no data | |
| Deputy Managing Director | 0.8yrs | US$404.20k | 0.0033% $219.4k | |
| Head of Information Technology | 0yrs | no data | no data | |
| Human Resources Director | 1.1yrs | no data | no data | |
| Chief Petroleum Engineer & Petroleum Technology Department Manager | 0yrs | no data | no data | |
| Deputy Chief Financial Officer | 0yrs | no data | no data |
3.1yrs
Average Tenure
Experienced Management: DNO's management team is considered experienced (3.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 8.7yrs | no data | no data | |
| Director | 12.3yrs | no data | 0.026% $1.7m | |
| Deputy Chairman | 0yrs | no data | 0.0041% $274.2k | |
| Director | 4.7yrs | no data | 0.0034% $226.0k | |
| Director | 9.7yrs | no data | no data |
9.2yrs
Average Tenure
66yo
Average Age
Experienced Board: DNO's board of directors are considered experienced (9.2 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: kr6.688b
- Shares outstanding: 975.43m
- Website: https://www.dno.no
Number of Employees
Location
- DNO ASA
- Dokkveien 1
- Aker Brygge
- Oslo
- Oslo
- 250
- Norway
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DTNO.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| DNO | OB (Oslo Bors) | Yes | Ordinary Shares | NO | NOK | Jan 1992 |
| NK1A | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| 0MHP | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | NOK | Jan 1992 |
| DNOO | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | NOK | Jan 1992 |
| DTNO.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Oct 2008 |
Biography
DNO ASA engages in the exploration, development, and production of oil and gas assets in the Middle East and North Africa. Its flagship project is the Tawke field that is located in the Kurdistan region of Iraq. As of December 31, 2018, its proven reserves consisted of 239.7 million barrels of oil equivalent (MMboe); proven and probable reserves included 376.1 MMboe; and proven, probable, and possible reserves consisted of 538.9 MMboe. The company was founded in 1971 and is headquartered in Oslo, Norway.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/26 21:17 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.