Dana Gas plans to buy back shares after 42% plunge
Sets aside additional budget for projects in UAE
Dana Gas, a UAE energy company, approved buying back as much as 10 per cent of its shares after they tumbled 42 per cent from the past year's high.
The board of the Sharjah-based company also agreed to an additional budget for its ventures in the UAE and Egypt, Dana Gas said in a statement to the Abu Dhabi bourse yesterday.
"The share buyback is a surprise that will be taken positively by the market," said Bobby Sarkar, an analyst at NBK Capital in Kuwait.
"The stock price has been depressed because of concern over liquidity."
Dana shares rose 2.9 per cent to Dh0.71, the highest since May 31, trimming its loss for the month to 2.7 per cent. They reached Dh1.18 on October 14, the highest in the past 12 months.
The company posted a profit of Dh33 million ($9 million) in the first quarter as output and energy prices rose, after a loss of Dh32 million a year earlier.
Dana is developing gas deposits, production and transport facilities in Iraq, while working on an offshore gas project in the UAE.
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