Petronor: 97% Cash, 21% Yield, and a High-Stakes Overhang
Deep value with a fortress balance sheet – but clarity on an ongoing investigation could be the key to unlocking upside
Updated April 7th, 2025
Petronor (PNOR.OL) is a cash-rich, debt-free oil producer that just paid out a ~21% dividend – and still trades at a deep discount to peers. But an unresolved investigation by Økokrim continues to weigh on the stock. For investors with patience and risk tolerance, the upside potential is significant.
A 21.5% Dividend
In January 2025, Petronor distributed NOK 2.00 per share to shareholders. At today’s share price of NOK 9.30, that translates to a ~21.5% yield.
Petronor remains net cash, with USD 80 million on the balance sheet at year-end 2024, and the board has signaled the potential for further distributions in 2025.
Solid Cash Flow from Congo
All current production comes from Congo-Brazzaville, specifically the PNGF Sud/Bis fields, where Petronor holds a 16.83% working interest.
2024 production: ~4,800 bopd net
Total 2024 sales: 1.8 million barrels
Revenue: USD 204.5 million
EBITDA: USD 100.3 million
No debt
This is high-margin, low-decline production with workovers and new wells planned for 2025 to further boost output.
Nigeria: Optionality, Not Production
Petronor’s Aje Field (OML 113) in Nigeria is not producing today. Instead, it’s a re-development project targeting gas, condensate, and LPG:
Gross resources: 500 BCF gas, 17 mmbbls condensate
Planned: FPSO, gas processing, pipeline, and onshore LPG plant
Current status: Project planning and approvals ongoing
This is upside — but not part of the current value proposition.
Økokrim Investigation
Here’s the main overhang: Petronor is under investigation by Økokrim in Norway for historic third-party transactions related to African assets.
Petronor has not been charged
The U.S. Department of Justice officially closed its investigation in early April
Timeline remains uncertain, but management expects more clarity in 2025
Until resolved, this is the key reason why the stock trades at a discount.
Valuation Snapshot
With a share price of NOK 9.30, Petronor looks exceptionally cheap on nearly all metrics:
~21.5% dividend yield (based on the January payout)
EV/EBITDA well below peers
No net debt
~USD 118 million in cash (as of January 2024)
And yet, no value is ascribed to Nigeria or Gambia — any progress there could be pure upside.
Key Risks
Unresolved legal overhang from Økokrim
Jurisdictional risk from Congo, Nigeria, and Gambia
Low liquidity on Oslo Børs
ESG headwinds may limit institutional interest
Dividend sustainability depends on both operational stability and regulatory clarity
Trading Just Above Net Cash
After its NOK 2.00/share dividend in January, Petronor still holds USD 118 million in cash, or roughly NOK 9.05 per share. With the stock currently at NOK 9.30, investors are paying just ~NOK 0.25/share for all producing assets, Nigerian redevelopment, and exploration upside.
In other words:
👉 Over 97% of the share price is backed by cash.
That’s a powerful margin of safety – rare in the energy sector.
Bottomline
Petronor is a textbook example of a deep-value, high-yield energy play with a catalyst on the horizon:
NOK 9.05/share in net cash
Deep value: Trading far below intrinsic value
High yield: NOK 2.00/share dividend equals a 21.5% yield at today’s price
Future upside: Nigeria and Gambia not yet priced in
Catalyst: Økokrim/DOJ resolution could trigger a rerating
If clarity emerges on the legal front, this stock could re-rate dramatically – and in the meantime, you’re paying almost nothing for future cash flow.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research or consult a financial advisor before making investment decisions. The author may hold positions in the mentioned securities.