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Regulatory press release

Skeljungur hf.: Share buy-back program initiated

The Board of Directors of Skeljungur has decided to initiate a share buy-back program in accordance with approval of Skeljungur shareholders’ meeting on May 27th, 2019. The main purpose of the program is to meet the Company’s approved dividend policy, i.e. to pay annually to shareholders 30-50% of profits in a form of dividends or a repurchase of shares.

The authorization is to purchase once or more often, until the next Annual General Meeting, shares in the Company at a purchase price which may not exceed ISK 550.000.000 at market value, and provided that it and its subsidiaries may only own at most 10% of the Company’s stock. It is expected that the repurchase according to the program will start today, June 7th and will remain until the Annual General Meeting in 2020, unless the conditions for maximum purchase are met before that time.

The purchase price for shares shall not be higher than the price of the last independent trade or the last independent bid in Nasdaq Iceland, whichever is higher. The daily trade will not exceed 25% of the average daily volume of the shares traded in May 2019, which amounts to 3.192.583 shares.

The buy-back program will be managed by Íslandsbanki which will make its trading decisions regarding the purchases and the timing of the purchase, without influence by the company. The execution of the share buy-back program will be according to the provisions of Act respecting Public Limited Companies, no. 2/1995, and Appendix to Regulation on Insider Information and Market Manipulation no. 630/2005. Transactions with owns shares according to the buy-back program will be publicly disclosed no later than at the end of seventh business day following the day of execution of such transactions.

For further information please contact Benedikt Ólafsson, CFO, fjarfestar@skeljungur.is, 840-3071.

Skeljungur is an energy company which sells products and services in Iceland, the Faroe Islands and in the N-Atlantic. Skeljungur’s main activities are import, storage, sales and distribution of fuel and fuel related products. The Company operates 76 gas stations and 6 oil depots in Iceland and the Faroe Islands. In addition, the Company operates convenience stores and provides services and sells oils for house heating in the Faroe Islands and sells fertilizer and other chemical products in Iceland. The Company’s customer base spans from individuals to institutions and companies in the fishing industry, agriculture, transport and contractors. Skeljungur owns the brand names Skeljungur, Orkan and OrkanX in Iceland and Magn in the Faroe Islands. Skeljungur’s goal is to fulfil the energy needs of individuals and companies in an effcient and safe way, in harmony with the environment.

www.skeljungur.is
https://www.linkedin.com/company/skeljungur-hf/

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