Dragon Oil revenue hit by poor oil price but dividend remains

 
Caitlin Morrison
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LONDON-listed Dragon Oil posted revenue of $1.09bn (£712m) for 2014, up from the $1.05bn reported for the previous year, despite a 16 per cent decline in operating profit, which was down from $688m to $579m.

The company said revenues had been hit “primarily by a significant decline in the Brent oil price” during the second half of the year, but added that due to its “strong cash position”, it was maintaining payment of dividends.

Investors are to receive a dividend of 36 cents, up nine per cent compared with this time last year.

Fourteen wells were completed in 2014, and average daily production increased by 6.8 per cent to 78,790 barrels of oil per day.

Towards the end of 2014, Dragon was in talks with Irish oil firm Petroceltic, however a deal between the two was never reached.

Abdul Jaleel Al Khalifa, Dragon Oil’s chief executive, said yesterday that his firm had withdrawn its interest due to “the uncertain crude oil price environment”.

Shares in Dragon Oil closed down 1.14 per cent yesterday to 565p .

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