Dublin-listed exploration company Dragon Oil said earnings rose 21 per cent last year due to higher crude prices and increased output.
The company, which is 52 per cent owned by the government of Dubai, said net income increased by €65 million from €304 million in fiscal 2007 to €369 million at the end of December.
Revenue rose by 18 per cent over the year from €597 million to €706 million while operating profits climbed 30 per cent from €365 million to €474 million.
Production rose to 45,600 barrels a day compared to 40,000 barrels a day a year earlier. It added that it expected annual output growth to average as much as 15 per cent by 2011.
The company said it expected to complete up to 35 development wells including eight wells this year.
Last year Dragon Oil increased its Group headcount by 10 per cent taking the average number of staff to 913 during 2008.
Net cash generated from operations during the year improved by approximately $111 million to $579 million.
Dragon is an oil exploration and production company whose activities are focused mainly on fields in the Caspian Sea off the Turkmenistan coast.
Publication of the company’s 2008 results were delayed until today due to an investigation into purchasing irregularities by former senior managers at the group.
Preliminary findings from the investigation, which was carried out by KPMG, indicate that improper conduct relating to procurement activities was confined to the group's marketing and contracts departments.
The firm said that a number of individuals managed to override the various internal controls in the procurement process through collusion and appear to have obtained financial benefits for themselves by securing improper payments from certain contractors.
"I am proud to report that Dragon Oil has achieved another solid set of results in spite of the challenging economic climate towards the end of 2008. We achieved and, in some cases, exceeded our targets; the average daily rate of production increased by a further 28 per cent and nine development wells were completed by the end of 2008. We continue to enjoy full cooperation from the Government of Turkmenistan," said Dr Abdul Jaleel Al Khalifa, Dragon's chief executive this morning.
Dragon also announced plans to restructure the company today and apply for a primary listing on the London Stock Exchange.
A Bermuda-Incorporated company will become the new holding company of the group and existing shareholders will hold one share in the newly formed firm, Dragon Oil Limited, for every share previously held by them in Dragon Oil plc.
"The proposed corporate restructuring of Dragon Oil will help align our corporate interests with our legal and commercial status. Dragon Oil’s strong cash position and unleveraged balance sheet will enable us to move towards the next level of development and growth to increase shareholder value," added Dr Al Khalifa
