DNO (Buy, TP: NOK16.00) - Improving its cash balance
DNO continued to increase its cash balance, with net cash of USD252m at end-Q3. Its announcement of a DPS of NOK0.25 to be paid in November was in line with the Q2 dividend and our forecast. However, we also see potential for higher shareholder returns through share buybacks in 2023, where this should be accretive to our NAV. In our view, higher distributions could reduce the current discount to NAV. We reiterate our BUY and NOK16 target price.DNO is a Norwegian exploration and production company focused on the Middle East and North Africa. Co. holds stakes in oil and gas blocks in various stages of exploration, development and production, both onshore and offshore, in the Kurdistan region of Iraq, Yemen, Oman, the United Arab Emirates, Tunisia and Somaliland.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.