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Dragon's profits dip but lifts dividend

Tuesday, February 12 11:13:25

Dublin-based international oil and gas exploration company Dragon Oil today posted operating profits of $790.9m for 2012 - down from $856.2m last time.

But the company raised its dividend by 50pc to 30 cents a share from 20 cents in 2011 and bought back $200 million in shares last year.

Revenues were virtually unchanged - down just 0.4pc at $1,155.1m - but profits for the year fell by 7pc to $600.0m.

Dragon Oil says 15 wells were completed during 2012 against an initial guidance of 13 to 15 and average gross daily production increased by 10pc to 67,600 barrels of oil per day.

Chief executive Dr Abdul Jaleel Al Khalifa said: "I am pleased to report once again strong financial and operational results for 2012."

"We sustained the over-US$1bn level in revenues as a result of strong oil prices and growth in production and finished the year with the average December production of robust 73,500 bopd. The year was not an easy one for us. We faced sand control issues in certain wells in 2Q 2012, which temporarily reduced production rates. We mobilised our highly professional and experienced operational teams to tackle the challenge; the production quickly returned to the previous level."

"Two new platforms are being fabricated and will be installed in the Dzhygalybeg (Zhdanov) field - initiating a new phase in the Group's drilling campaign in an area that last saw active drilling during the three decades before 2000. With more new platforms to be constructed for the Cheleken contract area, we are gearing up for continued intense drilling over the next few years as we progress towards our target of 100,000 bopd and prepare to maintain it for at least five years thereafter."