Oslo - Arabstoday
Norwegian oil company DNO more than tripled second-quarter core earnings and said it would buy back shares due to turmoil in the fin-ancial markets, lifting its stock price yesterday. DNO also said it had booked a key $104 million (Dh382 million) payment from its prize Tawke field in Iraqi Kurdistan for the second quarter. \"Given the ongoing sell-off 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 the \"market conditions\". Its shares were up 14 per cent to 4.96 crowns at 7.49am GMT. Article continues below DNO was originally due to publish second-quarter results on August 17 but published preliminary figures ahead of time. It said earnings before interest, taxes, depreciation and amortisation came in at 565 million Norwegian crowns (Dh380 million), up from 171 million a year ago. Expectations Arctic Securities analyst Trond Omdal said core earnings were \"mainly in line\" with his expectations. \"We agree with them that the share price is too low,\" he said. \"It does not take into account their extremely strengthened cash position or that they have received their first export payment.\" DNO said its cash position as of June 30 was 1.245 trillion crowns. Sales rose to 730 million crowns from 285 million in the same period last year, DNO said of its preliminary tally, while gross profit rose to 430 million from 129 million a year ago.