Article by Yippee-Ki-Yay

Should you invest in Panoro Energy in 2026? Our opinion

Buy signal | Free publication | 18 Jan 2026

Panoro Energy ASA: The Norwegian Outsider Shaking Up African Oil 🛢️

Who is Panoro Energy? The Little Thumb of Black Gold

Panoro Energy ASA is a bit like David challenging Goliath in the world of oil. This small Norwegian publicly traded company specialises in oil exploration and production in West Africa, mainly in Gabon, Equatorial Guinea and Nigeria. While big players such as TotalEnergies and BP make the headlines, Panoro plays its part discreetly but determinedly.

Founded with the ambition of becoming a key player in the African E&P (Exploration & Production) sector, the company has developed an attractive portfolio of assets in high-potential areas. Currently valued at NOK 20.65 per share, it is attracting the attention of investors seeking value in a rapidly changing energy sector.

The Big Reveal: Our Quality Rating out of 5 ⭐

1. Turnover: 4/5 - La Fusée en Marche

Hold on tight: Panoro's revenue has skyrocketed! It has grown from £32.96 million in 2019 to £267.88 million in 2024. Yes, you read that right: a sixfold increase in five years! 🚀

The pace is even accelerating: +48% between 2022 and 2023, then another +23% between 2023 and 2024. This growth isn't just impressive, it's worthy of a Netflix series. Strategic acquisitions and optimisation of existing assets are clearly hitting the mark.

In terms of forecasts, analysts anticipate revenue of around £170 million for 2025 (a slight decline due to oil price volatility), before a rebound to £180-190 million in 2026-2027.

2. Net result: 3.5/5 - Profitable but volatile

Here, things get a little complicated. Net income has been on a rollercoaster ride in recent years: from -$5.33 million in 2020 to $60.67 million in 2024, via $49.32 million in 2021. This volatility is typical of the oil sector, where barrel prices dictate the rules.

EPS (earnings per share) of $0.52 in 2024 shows strong profitability, but forecasts for 2025 predict a decline to $0.174 before a gradual recovery. The company remains profitable, but you have to accept the rollercoaster ride!

3. Debt: 3/5 - Beware of debt!

Ouch, that's the sore spot! Net debt rose from $30.88 million in 2019 to $152.07 million in 2024. The debt-to-equity ratio is close to 55%, which is starting to sting a little.

However, let's keep a cool head: this debt is financing growth and acquisitions. Operating cash flow of £112.42 million in 2024 shows that the company is generating enough cash to service its debt. Forecasts even anticipate a gradual reduction to £87.3 million by 2025 and potentially below £60 million by 2027.

4. ROE (Return on Equity): 4/5 - Performance Champions

Now we're climbing again! The current ROE is around 22.47%, and forecasts anticipate 14.5% for 2025 before rising to 20-22% in 2026-2027. For context, an ROE above 15% is considered excellent.

Panoro is effectively transforming its shareholders' capital into profits. This is the kind of performance that makes value investors' eyes light up.

5. Stock Market Performance: 3.5/5 - Potential but Caution Advised

The current consensus leans towards ‘Hold’ with a few tentative ‘Buy’ recommendations. The PE ratio of 7.10 (compared to a 12-month forecast of 11.12) suggests that the share is potentially undervalued relative to its future earnings.

Action estimate:

  • 2026: Between NOK 24-28 (potential upside of 15-35%)
  • 2027: Between NOK 28-32 (if oil prices remain strong)

Note Globale : 3,6/5 - Solide mais à Surveiller

Strengths and Risks of the Sector 🎯

Strengths:

  • Global energy demand remains strong
  • Strategic position in West Africa (significant reserves)
  • Low extraction costs at certain mature deposits
  • Energy transition still a long way off for oil

Risks:

  • Extreme volatility in oil prices
  • Political instability in Africa
  • Increasing environmental regulatory pressure
  • Long-term competition from renewable energies

Conclusion : Un Pari Calculé sur l'Or Noir

Panoro Energy ASA is a bit like that Series B stock that everyone is waiting to see explode. The fundamentals are there, growth is impressive, but you have to keep an eye on debt and the vagaries of the oil market. For investors who still believe in oil in the medium term (2025-2030) and who accept volatility, it's an interesting opportunity at NOK 20.65.

But let us remember: in the stock market, as in life, diversification remains the mother of all virtues! 🎲

  • Signal : Buy
  • Budget/Investment : Medium/High
  • Reinforcement required : No
  • Exposure : Medium
  • Horizon : 2 to 3 years
  • Potential profitability : +35% to +54%
  • Ref. ISIN code : NO0010564701