OB:NOR

Stock Analysis Report

Norwegian Energy

Executive Summary

Norwegian Energy Company ASA, an independent oil and gas company, focuses on the exploration, development, and production of hydrocarbon resources on the Norwegian, Danish, and the United Kingdom continental shelves.

Rewards

PE ratio (1.4x) is below the Norwegian market (9.7x)

Revenue is forecast to grow 29.41% per year

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of -69.9% per year for the next 3 years

Interest payments are not well covered by earnings

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NOR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

NOR

12.4%

NO Oil and Gas

4.8%

NO Market


1 Year Return

-44.8%

NOR

-32.2%

NO Oil and Gas

-24.3%

NO Market

Return vs Industry: NOR underperformed the Norwegian Oil and Gas industry which returned -35.7% over the past year.

Return vs Market: NOR underperformed the Norwegian Market which returned -24.3% over the past year.


Shareholder returns

NORIndustryMarket
7 Day-5.1%12.4%4.8%
30 Day-34.3%-12.7%-17.0%
90 Day-44.9%-29.5%-25.0%
1 Year-44.8%-44.8%-28.2%-32.2%-20.3%-24.3%
3 Year-50.4%-50.4%4.8%-8.4%2.0%-10.7%
5 Year176.1%176.1%10.3%-11.9%16.7%-9.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NOR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NOR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NOR is good value based on its PE Ratio (1.4x) compared to the Oil and Gas industry average (5.2x).

PE vs Market: NOR is good value based on its PE Ratio (1.4x) compared to the Norwegian market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: NOR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NOR is overvalued based on its PB Ratio (0.5x) compared to the NO Oil and Gas industry average (0.4x).


Next Steps

Future Growth

How is Norwegian Energy forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-69.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOR's earnings are forecast to decline over the next 3 years (-69.9% per year).

Earnings vs Market: NOR's earnings are forecast to decline over the next 3 years (-69.9% per year).

High Growth Earnings: NOR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NOR's revenue (29.4% per year) is forecast to grow faster than the Norwegian market (2.9% per year).

High Growth Revenue: NOR's revenue (29.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NOR's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has Norwegian Energy performed over the past 5 years?

-20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOR has a large one-off loss of $275.0M impacting its December 31 2019 financial results.

Growing Profit Margin: NOR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NOR has become profitable over the past 5 years, growing earnings by -20.5% per year.

Accelerating Growth: NOR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NOR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (39.2%).


Return on Equity

High ROE: Whilst NOR's Return on Equity (37.52%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Norwegian Energy's financial position?


Financial Position Analysis

Short Term Liabilities: NOR's short term assets ($523.0M) exceed its short term liabilities ($382.0M).

Long Term Liabilities: NOR's short term assets ($523.0M) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: NOR's debt to equity ratio (171.6%) is considered high.

Reducing Debt: NOR had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: NOR has a high level of physical assets or inventory.

Debt Coverage by Assets: NOR's debt is not covered by short term assets (assets are 0.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NOR is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: NOR is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NOR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NOR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NOR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NOR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NOR's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

0.4yrs

Average management tenure


CEO

Atle Sonesen

0.42

Tenure

Mr. Atle Sonesen serves as Managing Director of Neptune E&P Norge AS. He is Chief Operating Officer at Norwegian Energy Company ASA since 2019 and its Managing Director since November 1, 2019. Mr. Sonesen  ...


Leadership Team

NamePositionTenureCompensationOwnership
Riulf Rustad
Executive Chairman4.25yrsUS$450.00k0.61% $18.7m
Frederik Rustad
Executive Vice President of Corporate Finance & Investments0.42yrUS$2.62m0.023% $698.4k
Atle Sonesen
MD & COO0.42yrno datano data
Cathrine Torgersen
Executive Vice President of Investor Relations & Communications0.25yrno datano data

0.4yrs

Average Tenure

Experienced Management: NOR's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Riulf Rustad
Executive Chairman4.25yrsUS$450.00k0.61% $18.7m
Yves-Louis Darricarrere
Board Member0.58yrno datano data
Marianne Lie
Director3.92yrsUS$300.00k0.037% $1.1m
Tone Omsted
Director3.92yrsUS$300.00k0.021% $635.0k
Lars Purlund
Director3.92yrsUS$300.00k0.030% $922.4k
Chris Bruijnzeels
Director0.58yrno datano data
Colette Cohen
Director0.58yrno datano data

3.9yrs

Average Tenure

57yo

Average Age

Experienced Board: NOR's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NOR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 2843%.


Top Shareholders

Company Information

Norwegian Energy Company ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Norwegian Energy Company ASA
  • Ticker: NOR
  • Exchange: OB
  • Founded: 2005
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: kr3.074b
  • Shares outstanding: 24.20m
  • Website: https://www.noreco.com

Number of Employees


Location

  • Norwegian Energy Company ASA
  • Nedre Vollgate 1
  • Oslo
  • Oslo
  • 158
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOROB (Oslo Bors)YesOrdinary SharesNONOKJul 2007
CJ1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2007
0HTFLSE (London Stock Exchange)YesOrdinary SharesGBNOKJul 2007
NOROBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJul 2007

Biography

Norwegian Energy Company ASA, an independent oil and gas company, focuses on the exploration, development, and production of hydrocarbon resources on the Norwegian, Danish, and the United Kingdom continental shelves. As of July 31, 2019, the company had proven and probable reserves of 195 million barrels of oil equivalent. Norwegian Energy Company ASA was founded in 2005 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 Analysis2020/04/03 01:14
End of Day Share Price2020/04/02 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.