DCC has spent €18.8 million buying back its own shares. The food-to-energy group bought back more than one million shares, or 1.29 per cent of its issued share capital, at a price of €17.90 per share, on Monday.

The stock will be held as Treasury shares. Over the last six years, the company has spent €116.5 million in total buying back shares, including stamp duty and commission.

In total, DCC has bought back 10.2 million shares, or 11.6 per cent of its share capital, at an average price of €11.23 per share over the period.

Shares in DCC closed 10 cent higher at €18.00 in a weaker market last night as analysts welcomed the buyback, saying it should underpin earnings and add around 1 per cent to current forecasts.

The company has been forecast to report a 5 per cent drop in earnings per share in the year to March 2007 but analysts say the buyback should reduce the decline to closer to 4 per cent. "We see the move as important in several respects," NCB Stockbrokers said. "Firstly, it should provide useful underpinning in current volatile markets.

"Secondly, this is the first stock buyback since May 2004 and the price paid is a 40 per cent premium to that at the time of the last buyback."