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Kuwait Energy reports $5.6 million net profit in 2009

Exit production 15,927 boepd, up 68%
KUWAIT, May 12: Kuwait Energy Company ( KEC ), one of the fastest growing independent oil and gas companies in the Middle East, announced today its 2009 results during its Annual General Meeting (AGM) for shareholders. Kuwait Energy reported $88.3 million in revenues and $5.6 million in net profit.

Kuwait Energy reported record 2009 exit production of 15,927 barrels of oil equivalent per day (boepd), an increase of 68% on 2008, and proven and probable reserves increased by 18% to 51.2 million barrels of oil equivalent (mmboe).

Kuwait Energy Chairman and Managing Director, Dr Manssour Aboukhamseen, said: " Kuwait Energy recorded a fourth year of profit since its inception. 2009 was both a year of successes and challenges. Our daily production rate and reserves increased significantly mainly from production of developed assets, increased interest in assets and new oil discoveries, boosting our operational results, while on the other hand our financial performance was influenced by lower realised oil prices."

Dr Aboukhamseen added: "We continued our focus on the Company's expansion in the MENA region where we have made four new oil discoveries in Egypt and acquired additional working interest and operatorship in Burg El Arab field in Egypt."

"To consolidate our operations in Eurasia, we have acquired additional working interests in the Luzskoye and Chikshina fields in Russia, and were awarded the North Block in Latvia."

Kuwait Energy 's capital expenditure on exploration and development, plus funds to acquire additional working interests, reached US$174.7 million in 2009.

In the AGM, Kuwait Energy shareholders approved an increase in the Company's share capital from KD 103,562,483.400 to KD 107,167,646 through issuance of 36,051,626 new shares at 100 Fils each to new shareholders, with a premium of 101 Fils for each share. Existing shareholders waived their pre-emption rights in respect of the issue of shares and authorized the Board of Directors to issue such new shares fully paid.

Dr Aboukhamseen added: " Kuwait Energy also secured a Sharia-compliant reserve based financing of $50 million from the International Finance Corporation (IFC), a member of the World Bank. The financing is to accelerate the development and exploration of its oil and gas assets in Egypt and Yemen and to promote good environmental and social management while providing jobs and government revenues.

Kuwait Energy Deputy Chairman and Chief Executive Officer, Ms Sara Akbar, concluded: "As we move forward, Kuwait Energy will focus on opportunities in the MENA region and specifically in the Gulf countries and Iraq through partnerships with governments and private entities. 2010 promises to be a successful year operationally and financially as we expect to deliver significant growth to our shareholders through large scale potential projects to meet Kuwait Energy 's vision, since inception to achieve production of 50,000 boepd and reserves of 300 mmboe by the end of 2010."

Kuwait Energy is targeting an initial public offering (IPO) in the London and Kuwait stock markets within the next twelve months.

© Arab Times 2010