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 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

DNOIndustryMarket
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

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

NamePositionTenureCompensationOwnership
Bijan Mossavar-Rahmani
Executive Chairman8.7yrsno datano data
Bjørn Dale
Managing Director0yrsUS$774.10kno data
Haakon Sandborg
Chief Financial Officer19.1yrsUS$429.40kno data
Ute Quinn
Group General Counsel & Corporate Secretary3.1yrsUS$541.20kno data
Nicholas Whiteley
Group Exploration & Subsurface Director4.3yrsUS$559.40kno data
Christopher Spencer
Deputy Managing Director0.8yrsUS$404.20k0.0033% $219.4k
Aslak Steinsvik
Head of Information Technology0yrsno datano data
Geir Skau
Human Resources Director1.1yrsno datano data
Kenneth Myhrvold
Chief Petroleum Engineer & Petroleum Technology Department Manager0yrsno datano data
Aernout Van Der Gaag
Deputy Chief Financial Officer0yrsno datano data

3.1yrs

Average Tenure

Experienced Management: DNO's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bijan Mossavar-Rahmani
Executive Chairman8.7yrsno datano data
Gunnar Hirsti
Director12.3yrsno data0.026% $1.7m
Lars Takla
Deputy Chairman0yrsno data0.0041% $274.2k
Elin Karfjell
Director4.7yrsno data0.0034% $226.0k
Shelley Watson
Director9.7yrsno datano 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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 21:17
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.