Norwegian oil company DNO – which has recently signed heads of terms to absorb RAK Petroleum and migrate its listing to the London Stock Exchange –Â more than tripled second-quarter core earnings and said it would apply its cash pile to buy back shares due to turmoil in the financial markets, lifting its stock price on Wednesday, according to a Reuters report.
DNO also said it had booked a key $104 million payment from its prize Tawke field in Iraqi Kurdistan for the second quarter, a fieldÂ
“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”. Shares reponded positively to the news.
It said preliminary earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at NOK 565 million ($102 million), up from NOKÂ 171 million a year ago.
