Turkmenistan-focused oil producer Dragon Oil has today reported a 20% fall in first half profit, taking a hit from slower than expected progress on infrastructure projects and a revised pricing structure under a current sales deal.
The Dubai-headquartered company said operating profit in the first six months of the year fell to $324.1m from $404.2m the same time last year.
The company, which also plans to explore for oil in Iraq and Afghanistan, said output in the period grew 15% to 73,600 barrels of oil a day.
It flagged earlier this year that 2013 production would be at the lower end of its 10-15% annual production growth guidance.
Dragon also said it would pay an interim dividend of 15 cents per share, in line with last year.
The company's chief executive, Abdul Jaleel Al Khalifa, said he was pleased with the ''solid'' production growth seen in the first half of 2013.
''Financial results for the first half of this year reflect the impact of slower than expected progress on the awarding of infrastructure projects and a revised pricing structure under the current crude oil marketing agreement,'' he said.
Looking ahead, Dragon's CEO said the company will monitor closely alternative marketing routes and engage with market participants with an aim to diversify future export routes.
