Dragon Oil profit soars on higher output, oil price
Turkmenistan-focused oil firm Dragon Oil said profit soared 135 percent in the first half of the year on higher production from its fields and as the price of oil rose during the period, Reuters reported.
First half operating profit jumped to $407.3 million in the six months to June 30,the Dubai-headquartered company said on Wednesday, from $173.6 million in the same period the year before, boosted by an oil price which was 39 percent higher.
Dragon Oil said production averaged 58,000 barrels of oil per day in the first half, a 25 percent leap from its output in the same period last year, helped by new wells coming on stream.
The company said it was targeting production growth of 20 percent for the whole of 2011, above its goal of 10-15 percent annual production growth in the 2011-13 period.
Dragon, which is more than 50 percent owned by Dubai's National oil company Emirates National Oil Company, following a rejected takeover approach in 2009, said it planned to pay an interim dividend of 9 cents.
A plan to be able to monetise the company's gas reserves continued to be discussed with the Turkmenistan government, said Dragon.
Shares in Dragon Oil, which have fallen 22 percent in the last month, underperforming the European oil and gas companies index by around 5 percent, closed at 430 pence on Wednesday valuing the company at 2.19 billion pounds ($3.6 billion).