Saturday, June 25, 2016

Kjos lost 247 million. On brexit – Dagbladet.no

(Financial Newspaper): When the polling stations in the UK closed yesterday stood Norwegian share in 342.20 million, Finance writes newspaper.

10 hours later, when Europe woke up to the British decision to withdraw from the European Union and Prime Minister David Cameron had announced that he and his wife move out of Downing Street, raging share price in Norwegian by 10.5 percent in opening trade. The rate stood awhile in 307.1 million.

Throughout the day fetched share slightly in and at the end of trading week experienced airline a small rally up, before the stock made a last dive. Closing price was 312 million, a decline of 9.1 percent, the newspaper said.



Risk of cost

The main reason for the price drop due to the krone weakened against the dollar and euro yesterday.

– The affects Norwegian negatively as the company has more expenses than revenue in the two currencies, says flyanalytiker Hans Erik Jacobsen in Swedbank Finansavisen.

– If the crown does not correct again may earnings estimates for 2016 and 2017 fall by five to ten kroner. share, says Jacobsen colleague Magnus Berg at Arctic Securities.
Norwegian IRO Tore Ostby explains:

– When a permanent strengthening of dollar against kroner will the cost of fuel, maintenance and leasing increase translated in crowns, says han.Han emphasizes that Norwegian’s revenues come mainly will come in euros and dollars, since the company is not growing particularly more in Norway and Scandinavia.

Powerful loss of Kjos

for Norwegian boss Kjos was matter yesterday a letdown.

He has nearly 8 million shares in Norwegian. After yesterday’s fall of 9.1 percent was his paper fortune drastically reduced by 247 million.

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