Net financial income for the second quarter amounted to US$9.7 million (net expenses of US$6.6 million). The company said this high financial income primarily stems from the increased market value of forward exchange contracts.
A large proportion of these contracts were concluded to hedge the company's tax exposure in connection with a refinancing of its bank debt early in the third quarter, resulting in a currency gain in NOK that will imply a tax cost of US$7 million in the third quarter. The refinanced debt was nominated in USD and will not yield any currency gain in the consolidated accounts.
Net profit for the second quarter equaled US$30.1 million (US$21.3 million), and diluted earnings per share were US$0.84 (US$0.63).
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