DNO International ASA's Board of Directors today announced a share buyback program following release of preliminary second quarter 2011 results. The timing and volume of the share purchases will depend on market conditions.
"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," said DNO Chairman Bijan Mossavar-Rahmani.
DNO will publish its full results on 17 August 2011. The Company previously reported receipt of USD 103.7 million under an interim agreement between the Kurdish Regional Government and Baghdad. Following further elaboration and confirmation from both Kurdistan authorities and the Company's auditors, the payment has now been recognised as revenue in the second quarter.
Preliminary second quarter financial results are as follows: sales NOK 730 million; gross profit NOK 430 million; operating profit NOK 355 million; net profit NOK 215 million; EBITDA NOK 565 million; and netback NOK 550 million.
The cash position at 30 June 2011 was NOK 1,245 million.