OB:DNO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value with proven track record.

Risks

  • DNO has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-6.8%

OB:DNO

-2.1%

NO Oil and Gas

-1.6%

NO Market


1 Year Return

-31.4%

OB:DNO

-28.6%

NO Oil and Gas

-14.3%

NO Market

DNO underperformed the Oil and Gas industry which returned -28.6% over the past year.

DNO underperformed the Market in Norway which returned -14.3% over the past year.


Share holder returns

DNOIndustryMarket
7 Day-6.8%-2.1%-1.6%
30 Day-16.0%-9.6%-4.9%
90 Day-30.8%-19.8%-8.3%
1 Year-29.8%-31.4%-25.6%-28.6%-9.6%-14.3%
3 Year31.6%28.5%30.4%16.0%36.7%19.1%
5 Year-35.8%-37.3%12.9%-9.3%37.0%6.3%

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

Valuation

Is DNO undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

DNO's share price is below the future cash flow value, and at a moderate discount (> 20%).

DNO's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

DNO is good value based on earnings compared to the NO Oil and Gas industry average.

DNO is good value based on earnings compared to the Norway market.


Price Based on Expected Growth

DNO earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

DNO is overvalued based on assets compared to the NO Oil and Gas industry average.


Next Steps

Future Growth

How is DNO expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

-4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

DNO's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

DNO's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

DNO's revenue growth is positive but not above the Norway market average.

DNO's earnings are expected to decrease over the next 1-3 years, this is below the Norway market average.

DNO's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.8%.


Earnings per Share Growth Estimates


Future Return on Equity

DNO is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has DNO performed over the past 5 years?

63.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

DNO has delivered over 20% year on year earnings growth in the past 5 years.

DNO's 1-year earnings growth is negative, it can't be compared to the 5-year average.

DNO's 1-year earnings growth is negative, it can't be compared to the NO Oil and Gas industry average.


Return on Equity

DNO has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

DNO used its assets more efficiently than the NO Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

DNO has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is DNO's financial position?


Financial Position Analysis

DNO is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

DNO's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

DNO's level of debt (80.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (27.6% vs 80.2% today).

Debt is well covered by operating cash flow (36.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

3.78%

Expected Dividend Yield


Dividend Yield and Payments Analysis

DNO's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.74%).

DNO's dividend is below the markets top 25% of dividend payers in Norway (6.45%).

It is too early to tell whether DNO has stable dividend payments.

DNO only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (17.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).


Next Steps

Management

What is the CEO of DNO's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Bjørn Dale 0

0.0yrs

Tenure

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

Insufficient data for Bjørn to establish whether their remuneration is reasonable compared to companies of similar size in Norway.

Bjørn's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.8yrs

Average Tenure

The average tenure for the DNO management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.7yrs

Average Tenure

66yo

Average Age

The tenure for the DNO board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$51,27009 May 19
Christopher Spencer
EntityIndividual
Role
Senior Key Executive
Deputy Managing Director
Shares3,000
Max PriceUS$17.09
BuyUS$181,21919 Feb 19
Lars Takla
EntityIndividual
Role
Vice Chairman
Deputy Chairman
Shares10,000
Max PriceUS$18.12

Ownership Breakdown


Management Team

  • Haakon Sandborg (61yo)

    Chief Financial Officer

    • Tenure: 18.6yrs
    • Compensation: US$429.40k
  • Bijan Mossavar-Rahmani (67yo)

    Executive Chairman

    • Tenure: 8.2yrs
  • Chris Spencer

    Deputy Managing Director

    • Tenure: 0.3yrs
    • Compensation: US$404.20k
  • Bjørn Dale

    Managing Director

    • Tenure: 0.0yrs
    • Compensation: US$774.10k
  • Kenneth Myhrvold

    Chief Petroleum Engineer & Petroleum Technology Department Manager

    • Tenure: 0.0yrs
  • Aslak Steinsvik

    Head of Information Technology

    • Tenure: 0.0yrs
  • Nicholas Whiteley

    Group Exploration & Subsurface Director

    • Tenure: 3.8yrs
    • Compensation: US$559.40k
  • Ute Quinn

    General Counsel & Corporate Secretary

    • Tenure: 2.6yrs
    • Compensation: US$541.20k
  • Jon Sargeant

    Managing Director of DNO Technical Services AS

    • Tenure: 1.1yrs
  • Geir Skau

    Human Resources Director

    • Tenure: 0.6yrs

Board Members

  • Drøbak Hirsti (65yo)

    Director

    • Tenure: 11.8yrs
  • Lars Takla (75yo)

    Deputy Chairman

    • Tenure: 0.0yrs
  • Elin Karfjell (54yo)

    Director

    • Tenure: 4.2yrs
  • Bijan Mossavar-Rahmani (67yo)

    Executive Chairman

    • Tenure: 8.2yrs
  • Shelley Watson

    Director

    • Tenure: 9.2yrs

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: kr12.428b
  • Shares outstanding: 1.05b
  • 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 North Africa. Its flagship project is the Tawke field that is located in the Kurdistan region of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 21:05
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.