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Abu Dhabi, UAESunday 23 September 2018

RAK Petroleum reports profit rise for H1 

The Norway-listed company reported strong activity from its subsidiary DNO

The Bukha A Oman oil field in Oman, which is operated by DNO, in which RAK Petroleum owns a stake. Pawan Singh / The National
The Bukha A Oman oil field in Oman, which is operated by DNO, in which RAK Petroleum owns a stake. Pawan Singh / The National

RAK Petroleum, the Oslo-listed oil and gas company, posted a net profit of $31 million for the first half of 2018, a sharp increase from the same period last year when its restated net profit was $2.9m.

The company did not explain the reasons for the sharp profit rise compared to 2017. Net revenue for the six months to June 30 was $289m, up 83 per cent year on year, according to the company’s latest financial report published on Friday. Total assets stood at $2 billion, up from $1.7bn in the same period of 2017.

RAK Petroleum holds a 40.45 per cent interest in DNO, another Oslo-listed company focused on oil exploration and production in the Middle East – in particular, the Kurdistan region of Iraq and offshore of Oman’s Musandam peninsula – and the North Sea.

During the first half of 2018, DNO received a total $277.6m from the Kurdistan Regional Government (KRG) as payment for its share of oil deliveries to the export market from the Tawke licence, “which was recognised as sale of petroleum products”, RAK Petroleum said in its notes to the financial statements on Friday.

DNO has previously struggled to recoup outstanding arrears from the KRG. However, a fresh agreement between the parties last year resulted in DNO kickstarting its investment in the region.

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Read more:

First half profits dip for RAK Petroleum

DNO restarts spending in Kurdistan, picking up Exxon stake

DNO strikes a new deal in Kurdistan as profits slump in Q2

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RAK Petroleum also has a 33 per cent interest in Foxtrot International, an unlisted company operating an offshore gas field in the Ivory Coast.

RAK Petroleum will “continue to identify additional undervalued oil and gas assets or companies in which to build a shareholding”, its executive chairman Bijan Mossavar-Rahmani, said in a foreword to the financial report.

“[We will] then initiate a deep and active engagement with management to unlock value by building on our experience, our expertise and our extensive network of public and private sector relationships,” he added.

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