Dragon Oil profit up 31 per cent

City A.M. Reporter
OIL and gas company Dragon posted a 31 per cent rise in profits in the first half of the year – lifted by a higher oil price and oil production which jumped eight per cent.

The company, which focuses on Turkmenistan, posted profit of $137.6m (£86.2m) for the first six months of the year, compared to $105m in the same period last year. Revenues grew 4.9 per cent to $276.3m.

A 50 per cent increase in the average price it received for its crude oil was offset by a decrease in sales volumes, said the company.

Average daily oil production rose to 46,420 barrels of oil per day in the first half of the year compared to 42,808 in the first six months of last year.

Dragon Oil said discussions with the Turkmenistan government for it to be able to sell its gas resources in the country were continuing.

The company also said it continued to review and test alternative routes for exporting its oil. It currently exports oil through Azerbaijan, via a pipeline operated by BP.

Shares in Dragon Oil closed at 447.8 pence on Friday, valuing the company at £2.3bn.