(Aug 19): Rex International’s recent share buyback is a curious case of resource allocation. On Aug 15, the oil exploration and production company bought 897,100 shares from the market at 6.4 cents apiece. This follows an earlier purchase of 1.4 million shares on Aug 13 at the same price. 

The company can buy back up to 129 million shares, or 10% of its issued share capital base.

Rex International’s initial share buyback was transacted on the day it released a mixed set of financial results for the second quarter ended June 30. The company reported earnings of US$23.6 million ($32.8 million), reversing from a net loss of US$2.7 million a year ago. However, it recorded no service revenue during the quarter and did not elaborate on that. Compare this with its year-ago revenue of US$90,000, which was derived from technical services rendered to external clients by its subsidiary, Rex Technology Management.

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