Dragon Oil to raise dividend by 50%

Tuesday 12 February 2013 08.02
Dragon Oil's operating profits down 8%
Dragon Oil's operating profits down 8%

Oil producer Dragon Oil said its operating profit slipped 8% last year.

But the company has still decided to raise its dividend by 50% as its operations in Turkmenistan continued to generate large amounts of cash.

Dublin-listed Dragon Oil today posted full-year operating profit of $790.9m compared to the $856.2m it made in 2011.

The lower profit came despite a 10% rise in oil production over 2012 and was a result of a higher cost of sales due to higher field operating costs.

Dragon Oil said it has recommended paying out 30 cents per share in a full-year dividend, 50% higher than the 20 cents it paid out last year.

The company has recently won deals to explore for oil into Iraq and Afghanistan as part of a long-stated plan to expand beyond its Turkmenistan base.

It said it generated revenues of $1.16 billion from its operations in 2012.

Production for this year would be at the lower end of its 10-15% annual production growth guidance, the company said, adding that it sees output growing by around 15% in 2014 and 2015.