Five years and counting: RAK Petroleum boasts $15.81 million profit since December
The profit gains add to RAK Petroleum's fifth consecutive year of profitability (File/AFP)
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RAK Petroleum Public Company, the energy investment company, has announced a net profit of Dh58.1 million ($15.81 million) for the year ended December 31, 2013, marking a fifth consecutive year of profitability.
The company’s assets include a 42.8 per cent shareholding in DNO ASA, the Oslo-listed oil and gas company with operations in the Middle East, and a 100 per cent interest in Mondoil Enterprises, which holds an indirect eight per cent stake in Cote d’Ivoire Block 27 containing that country’s two largest producing gas fields.
Under equity accounting rules for associated companies, RAK Petroleum assumes a proportionate share of DNO’s profit and loss in its own financial results; RAK Petroleum’s share of DNO’s 2013 net profit amounted to Dh34.0 million in 2013. Mondoil Enterprises’ net profit amounted to Dh51.3 million.
Adjustments for other income and general and administrative expenses brought net profit for the year to Dh58.1 million.
Early this year, Mondoil Enterprises added to its exploration portfolio by acquiring an indirect 9.2 per cent stake in Cote d’Ivoire Block 502 and another transaction is pending which will raise the indirect stake in Cote d’Ivoire Block 27 to 9.1 per cent.
“Last year was a banner year for RAK Petroleum and its shareholders with significant growth in our DNO investment which at year end had a market value of Dh6,366 million versus an acquisition cost of Dh2,572 million after adjustments, while Mondoil Enterprises generated Dh85.2 million in cash distributions which were re-invested in the capital expansion programme of Cote d’Ivoire Block CI-27 and helped fund other corporate investments and expenditures,” said Bijan Mossavar-Rahmani, the company’s chairman of the board of directors and chief executive officer.
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