Gram Car Carriers (GCC) is making quick progress towards its stock buyback target.
The Oslo-listed tonnage provider announced a plan to acquire 300,000 of its own shares a month ago to increase its ability to reward executives or pursue acquisitions with the stock.
A series of deals since 31 May has added 83,000 shares to the total, at prices ranging between NOK 163 and NOK 169.71 each.
GCC has now bought back 246,000 shares for NOK 41.4m ($3.83m) since the programme began.
This equals 0.84% of its share capital.
The company has board clearance to continue the buybacks until 31 August.
GCC can spend up to NOK 60m on the shares.
Fearnley Securities, which is carrying out the purchases, calculates that GCC trades at 80% of its net asset value.
The stock was trading up 0.5% at NOK 172.80 on Friday.
“The purpose of the programme is to give the board flexibility to use treasury shares as settlement under the company’s incentive schemes or to reduce the capital of the company,” GCC said.
“Furthermore, shares acquired under the programme may be used … in connection with investment within the company’s business area or as settlement in potential acquisitions.”
Car carrier rates are at record levels and GCC is betting that its stock price has some way to rise yet.
The company’s first-quarter profit was $13.1m, or $0.45 per share, up from $2.1m in the same period of 2022. Revenue grew to $41.1m from $23.5m.
The company has a record revenue backlog of $874m and signed $61m of new contracts in the quarter.
