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RAK Petro posts $74m profit in 2012

Ras Al Khaimah, May 8, 2013

 

RAK Petroleum, a UAE-based energy investment company, said the company has registered its fourth consecutive year of profitability netting a Dh271.6 million ($73.9 million) profit for the year ended December 31, 2012.
 
The company also expanded its investment portfolio this month by acquiring Mondoil Enterprises, which holds an indirect 8 per cent interest in Cote d’Ivoire Block 27 containing the country’s largest gas field, Foxtrot.
 
The agreement was signed by Amir Ali Handjani on behalf of the Rak Prtroleum board and Bijan Mossavar-Rahmani, the chairman and CEO of RAK Petroleum, representing Mondoil Enterprises. 
 
"The Mondoil Enterprises acquisition expands RAK Petroleum’s footprint beyond our shareholding in DNO International,” said Handjani. 
 
“In addition to strong cash flow from the established Foxtrot and Mahi gas fields, the ongoing development of the Marlin oil and gas field and of the Manta gas field, also within the license area, offer exciting growth opportunities for RAK Petroleum,” he stated.
 
The company holds a 42.8 per cent shareholding in DNO International DNO International is a publicly traded Norwegian oil and gas company with assets predominantly in the Middle East (Kurdistan Region of Iraq, Yemen, Oman, United Arab Emirates, Tunisia and Somaliland). 
 
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. 
 
As at year end 2012, the company’s stake in DNO International had a market value of Dh2.68 billion although the DNO International position is carried on the company’s balance sheet at Dh2.44 billion reflecting the original acquisition cost after adjustments.
 
“This interest was acquired with a combination of treasury and newly issued shares of RAK Petroleum. We are gratified by Mondoil Enterprises’ substantial vote of confidence in our value and commitment to our future,” added Handjani.
 
The independent members of the Rak Petroleum board conducted due diligence through, and were provided a fairness opinion by, a leading international bank. 
 
The company issued 2,28.4 million new shares, bringing its total issued and outstanding shares to 3.22 billion.-TradeArabia News Service



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