Investors > Operational and Financial Highlights
Operational and Financial Highlights
Summary of Important Events
- The Company recorded a net profit from operations of AED 97.0 million for the year ended 31 December 2010 (versus a net profit of AED 29.5 million in 2009), the second consecutive profitable year since its founding in 2005.
- The Company’s shareholding in DNO International ASA reached 30 percent in the second quarter of 2010 and RAK Petroleum now has two management members on the DNO Board after the Chairman of the Board and Chief Executive Officer Bijan Mossavar-Rahmani was elected by DNO shareholders in March 2011. DNO is engaged in the acquisition, development and operation of oil and gas properties in the Middle East, UK Continental Shelf and Africa.
- Under equity accounting rule IAS 28, investments of 20 percent or more in operating companies are treated as an investment in associates. Thus, RAK Petroleum’s 30 percent holding in DNO is recorded at cost on the Company’s balance sheet and the attributable share of profit or loss is recorded on the income statement below the Company’s net profit for its own operations. In 2010, DNO recorded a loss of NOK 282.9 million, partially due to a NOK 322 million provision for an arbitration award and associated legal costs in the third quarter. Notwithstanding the incorporation of RAK Petroleum’s share of 30 percent of DNO’s net loss for 2010, the Company recorded a profit of AED 56.3 million for the year.
- The Company exchanged nearly 100 million EDRAK shares for remaining interest in the RAK Saleh Block with RAK Gas LLC and sold remaining du (Emirates Integrated Telecommunications Company) shares.
- After a successful appraisal well drilled in the first quarter at Hamrat Duru 4, the Company pursued a plan for Block 30 with the Oman Ministry of Oil and Gas to launch a combined development programme of Nadir, Al Sahwa, Hafar and the Hamrat Duru fields and awaits approval. The go-ahead was given for drilling of three development wells on Block 8 in 2011 and 2012. In Block 31, the Company has begun planning for drilling a new exploration well at Wadi Jiffra.