Sept. 4 (Bloomberg) -- Siem Offshore Inc., a Norwegian offshore services company, rose the most in more than a year in Oslo trading after announcing a share buyback.
The shares rose as much as 7.8 percent, the most since Aug. 10, 2011, and traded up 6.5 percent at 8.2 kroner as of 1:29 p.m., the fourth largest gainer on the Oslo All-Share Index.
“It’s very positive that they are willing to buy back their own stock,” Petter Narvestad, an analyst at Fondsfinans ASA, said by phone. “The share is trading at significant discount to the break-up value of the company.” Siem Offshore has a net asset value of about 15 kroner a share, he said.
The Kristiansand, Norway-based company said it will repurchase as many as 10 million shares at as much as 10 kroner ($1.72) apiece, according to a statement today. The buyback started today and will run until the company’s 2013 annual general meeting at the latest, it said. About 300,000 shares had traded as of 1:27 p.m., compared with a daily average of 184,000 over the past six months.
Siem Offshore, which was spun off from Subsea 7 Inc. in 2005, owns and operates a fleet of ships that services offshore installations. Second-quarter sales grew 16 percent to $91 million from a year earlier, it said Aug. 23.
“It’s a company with a solid balance sheet so they shouldn’t have any problems with either buybacks or dividends and also investing in growth,” said Narvestad, who has a buy rating on the stock and 12.5-krone price estimate.
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