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Wednesday, 14 April 2010

Dragon Oil profits fall by a third

Dragon Oil, the Turkmenistan-focused oil producer controlled by the Dubai Government, posted a 30 per cent drop in profit last year despite selling 40 per cent more crude.

Net profit declined to US$259 million (Dh951.3m) from $369m in 2008. Dragon’s revenue also fell, sliding 12 per cent to $623.5m from $706.1m. The company attributed that to “a lower average realised price” for its crude.

Even so, analysts said the company performed well last year compared with most other small oil producers. The value of its assets increased as Dragon built production infrastructure such as oil platforms while maintaining a balance sheet with no long-term debt.