RAK Petroleum Public Company Limited, the energy investment company, today announced net profits of AED 271.6 million for the year ended 31 December 2012, marking a fourth consecutive year of profitability with record profits.
The Company holds a 42.8 percent shareholding in DNO International ASA (www.dno.no). 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. At yearend 2012, the Company’s stake in DNO International had a market value of AED 2,684.3 million although the DNO International position is carried on the Company’s balance sheet at AED 2,447.4 million reflecting the original acquisition cost after adjustments.
The Company expanded its investment portfolio in April 2013 by acquiring Mondoil Enterprises LLC which holds an indirect 8 percent interest in Cote d’Ivoire Block 27 containing that country’s largest gas field, Foxtrot. The transaction was carried out as an all paper share exchange between the parties.
The agreement was signed by Amir Ali Handjani on behalf of the Board of Directors of RAK Petroleum and by Bijan Mossavar-Rahmani representing Mondoil Enterprises. Mr. Mossavar-Rahmani is Chairman and Chief Executive Officer of RAK Petroleum.
“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 to RAK Petroleum”, he said.
“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 Board of Directors of RAK Petroleum were advised by an international legal firm, and were provided a fairness opinion by a leading international bank. The Company issued 228,481,656 new shares, bringing its total issued and outstanding shares to 3,228,481,656.