Dubai-based Dragon oil, in which the Emirates National Oil Company (Enoc) has a majority stake, enhanced its sales of crude by 108 per cent in the first quarter of 2009 as compared to the same period in 2008.
A statement issued by the company said: "Dragon oil sold 2.5 million barrels of crude in Q1 2009, which is 108 per cent higher than the volume sold during the corresponding period last year (1.2 million barrels in Q1 2008)."
The results come close on the heels of two oil majors Shell and British Petroleum (BP) reporting a 58 per cent and 62 per cent drop in profits in the first quarter of 2009. With building up of stockpiles to historically high levels in countries like the US and China, the global demand for oil has also ebbed.
An official at Dragon Oil said the company is now looking forward to acquisitions of oil and gas fields in the Middle East, Central Asia and Africa.
While the company is in price negotiations for gas with Turkmenistan now, it is also exploring oil fields in Yemen. Dragon Oil has held a 10 per cent interest in exploration blocks 25, 49, and R2 in Yemen since December 2007. Company officials said they expect new production to come on stream by the end of 2009.
"Dragon oil continues to increase production and we achieved a 19 per cent increase in gross production in Q1 2009 as compared to Q1 2008," Abdul Jaleel Al Khalifa, the company's CEO said in a statement.
The company sold oil at an average of $44 a barrel in the first quarter of 2009. This was 52 per cent lower when compared to the same period in 2008. The company sold oil at an average of $92 a barrel in 2008.
Dragon Oil did not disclose its net profits for the quarter and company officials say that it discloses only its interim profits. Its operating profit at the end of 2008 stood at $474 million (Dh1.74 billion). The company's profit after taxes stood at $369m at the end of 2008.
The company said after a capital expenditure of $81m in the first quarter, its cash position – term deposits, holdings of cash and cash equivalents – was $833m.
Dragon Oil is an independent oil development and production company, registered in Ireland and listed under a dual primary listing on the London and Irish Stock Exchanges.
Approximately 52 per cent of the company's equity is held by the Emirates National Oil Company.
Dragon Oil had proved and probable oil reserves at of 645 million barrels and 3.2 trillion cubic feet of gas resources as of June 30, 2008.
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