RAK Petro announces third year of profit
Dubai, April 25, 2012
RAK Petroleum, a leading oil and gas exploration and production company, has announced its third consecutive year of profitability registering a Dh15.7 million ($4.27 million) full year net profit for 2011.
Announcing the results for the year ended December 31, 2011, RAK Petroleum said the company recorded a net profit from operations before one-off write downs of Dh75.2 million for 2011, excluding associated company results.
Taking into account the company’s 30 per cent share of DNO International’s profit in 2011 of Dh128.7 million, RAK Petroleum’s net profit before one-off write downs was Dh203.9 million.
The write downs taken at year end 2011 totalled Dh188.2 million following a review of the exploration licenses and consistent with the merger valuation of the company’s assets, it added.
“During 2012, the company has entered a new phase with our transformation to an energy investment company with exposure to 17 licences in seven countries across the Mena region,” said Bijan Mossavar-Rahmani, chairman of the board of directors and RAK Petroleum CEO, speaking ahead of the company’s ordinary general meeting to be held in Ras Al Khaimah on Thursday.
The company had increased its ownership stake in DNO International ASA from 30 to 42.8 per cent following the merger of RAK Petroleum’s operating subsidiaries into DNO International, a transaction approved by both companies’ shareholders in 2011 but with legal closure on January 10.
DNO International is a publicly traded Norwegian oil and gas company with assets predominantly in the Middle East (Kurdistan Region of Iraq, Yemen, Oman, UAE and Tunisia).
Under equity accounting rules for associated companies RAK Petroleum assumes a proportionate share of DNO International’s profit and loss in its own financial results.-TradeArabia News Service