PROFITS AT Dubai-backed and Dublin-listed Dragon Oil rose 21 per cent to $369 million (€277 million), the company reported yesterday. Dragon, which is 52 per cent owned by the government of Arab emirate, Dubai, last month delayed the publication of its 2008 results because it had launched an investigation into irregularities into purchasing contracts involving former executives.
The company subsequently reported that the investigation showed that the irregularities had no material bearing on its results.
Results published yesterday showed that revenues rose 18 per cent in 2008 to $706 million from $597 million the previous year.
Operating profits were up 30 per cent at $474 million from $365 million over the same time period, while profits for 2008 came in at $369 million, 21 per cent ahead of the previous year’s return of $304 million.
Earnings per share were up 21 per cent at 71.8 cents, and the group’s cash reserves increased 60 per cent to $876 million. It had no debt.
In an update on the investigation yesterday, the company said it has acted, and is continuing to act, on its lawyers’ advice in order to ensure that the matter is dealt with swiftly. It has replaced those involved.
Dragon is an oil exploration and production company whose activities are focused mainly on fields in the Caspian Sea off the Turkmenistan coast.
The group is planning a restructuring that will involve creating a new Bermuda-based holding company. It will then apply to have its primary listing on the London Stock Exchange and a secondary one in Dublin.
The new entity will be called Dragon Oil Ltd. If shareholders back the move, they will be given one Dragon Oil Ltd share for every Dragon Oil plc unit they own.
