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DNO plans buyback due to market turmoil
2011-08-11 Reuters- Norwegian oil company DNO more than tripled second-quarter core earnings and said it would buy back shares due to turmoil in the financial markets, lifting its stock price on Wednesday.
DNO also said it had booked a key $104 million payment from its prize Tawke field in Iraqi Kurdistan for the second quarter.
"Given the ongoing sell-off and and sharp declines in global securities, we have decided to invest available cash to capitalise on the undervaluation of the company's share price," chairman Bijan Mossavar-Rahmani said.
DNO said the timing and the size of the buyback would depend on "market conditions". Its shares were up 14 percent to 4.96 crowns at 0749 GMT when the Oslo benchmark index was up 3.6 percent.
DNO was originally due to publish second-quarter results on Aug. 17 but published preliminary figures ahead of time.
It said preliminary earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at 565 million Norwegian crowns ($102 million), up from 171 million a year ago.
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2011-08-11 Reuters- Norwegian oil company DNO more than tripled second-quarter core earnings and said it would buy back shares due to turmoil in the financial markets, lifting its stock price on Wednesday.
DNO also said it had booked a key $104 million payment from its prize Tawke field in Iraqi Kurdistan for the second quarter.
"Given the ongoing sell-off and and sharp declines in global securities, we have decided to invest available cash to capitalise on the undervaluation of the company's share price," chairman Bijan Mossavar-Rahmani said.
DNO said the timing and the size of the buyback would depend on "market conditions". Its shares were up 14 percent to 4.96 crowns at 0749 GMT when the Oslo benchmark index was up 3.6 percent.
DNO was originally due to publish second-quarter results on Aug. 17 but published preliminary figures ahead of time.
It said preliminary earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at 565 million Norwegian crowns ($102 million), up from 171 million a year ago.
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