RAK Petroleum Public Company Limited, the energy investment company, today announced net profits of AED 15.7 million for the year ended 31 December 2011, making a third consecutive year of profitability.
“During 2012, the Company has entered a new phase with our transformation to an energy investment company with exposure to 17 licenses in 7 countries across the Middle East-North Africa region,” said Bijan Mossavar-Rahmani, Chairman of the Board of Directors and Chief Executive Officer of RAK Petroleum, speaking ahead of the Company’s Ordinary General Meeting to be held in Ras Al Khaimah on Thursday.
The Company increased its ownership stake in DNO International ASA (www.dno.no) from 30 to 42.8 percent 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 10 January 2012. 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.
The Company recorded a net profit from operations before one-off write downs of AED 75.2 million for 2011, excluding associated company results. Taking into account the Company’s 30 percent share of DNO International’s profit in 2011 of AED 128.7 million, RAK Petroleum’s net profit before one-off write downs was AED 203.9 million. Write downs taken at year end 2011 totalled AED 188.2 million following a review of the exploration licenses and consistent with the merger valuation of the Company’s assets.