Kuwait Energy reports net profit of US$22 million for 2010 and pays maiden, 5 fils per share, dividend

Kuwait Energy Company, one of the fastest growing independent oil and gas companies in the Middle East, yesterday announced financial and operational results
for the year 2010 during its annual meeting of shareholders. The Company earned a net profit of US$21.9 million in 2010, up 291% from 2009, and US$85.6 million in operating cash flow, up 68% from 2009.
Speaking to shareholders, Kuwait Energy Chairman and Managing Director, Dr. Manssour Aboukhamseen said, "2010 was a milestone year for the Company strategically, financially, and operationally. Kuwait Energy recorded its fifth consecutive profitable year since inception. This year's results were supported by a continued increase in production, proceeds from partial divestments, and higher oil and gas prices. Kuwait Energy has today a robust financial position that gives value to shareholders and supports the Company's growth strategy on the long-term."
2010 highlights:
● Sales revenue: US$141.8 million, up 61% from 2009
● Total assets: US$ 740.9 million, up 9% from 2009
● Average working interest production: 13,258 boepd, up 15% from 2009
● Total exploration wells drilled: 11
● Total development wells drilled: 33
Dr. Aboukhamseen added, "We entered a key market in the Middle East, reinforced our operations in our existing markets, and kept delivering on our strategy of optimizing existing fields and discovering new fields to turn natural resources into revenue generating assets for our partners and stakeholders. This was all achieved in a completely transparent framework delivered through world-class operations and expertise."
In Iraq, Kuwait Energy and its partners were awarded contracts for the development of Siba and Mansuriya gas fields. In Yemen, the Company signed a memorandum of understanding with the country to develop a study on the development of natural gas reserves for domestic use.
"Both opportunities are very exciting reflecting Kuwait Energy's objective of achieving significant growth in the MENA region," said Dr. Aboukhamseen.
From 2008 to 2010, Kuwait Energy's exploration program has added 10.5 mmboe of proven and probable reserves. Production increased as a result of exploration discoveries and the full acquisition of two oil fields in Russia.
"However, the MENA region remains our primary focus area, and we will continue to look for more growth opportunities in the region in 2011 and beyond," said Dr. Aboukhamseen.
The Company also raised in excess of US$100 million in capital through a rights issue to fund future expansion.
"These additional funds will be utilized to pursue the organic growth element of the Company's expansion plans, to develop recent discoveries and to drill additional wells in the MENA region, especially in Egypt," said Dr. Aboukhamseen.
Presenting the Company's operational milestones to shareholders, Kuwait Energy Company Deputy Chairman and Chief Executive Officer, Ms Sara Akbar, said: "There are outstanding opportunities for developing oil and gas assets in the Middle East as the region opens up to international oil companies. Our operations were not affected by unrest in the MENA region. 2011 promises to be an exciting year and we expect to deliver significant growth to our shareholders."
Kuwait Energy shareholders approved the Board's recommendation to issue dividends equivalent to 5% per share value of 100 fils, and elected a new Board of Directors. As a result of this election, the seven new Board members for the next three years will be as follows:
1. Dr Mansour Aboukhamseen, Executive Director
2. 25th Project Management Company (a Global Investment House entity), represented by Ms Sara Akbar
3. Al Zahra International Project Management and Development Company, represented by Dr Abdul Mohsen Al Medej
4. AREF Energy Holding Co., represented by Mr Tareq AlWazzan
5. EGI-Fund (08-10) Investors, LLC, represented by Mr William Monteleone
6. Dr Yousef A. Al-Awadi, Independent Director
7. Mr Mohamed Youssef Rafie, Independent Director.
Source: Kuwait Energy Company