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Dana Gas reports flat Q2 net profit

United Arab Emirates-based energy firm Dana Gas on Thursday reported flat second-quarter profit as low hydrocarbon prices hurt earnings.

 

Dana made a net profit of $7 million in the three months to June 30, compared to a profit of $7 million in the prior-year period, it said in a bourse statement.

 

The company had reported falling profits or a loss in five of the previous six quarters, as oil prices slumped from their mid-2014 peak.

 

Revenues during the second quarter totalled $96 million, down from $116 million in the prior-year quarter.

 

“The reduction was due to the decline in comparable hydrocarbon prices, which was offset by a combination of certain interest, reversals in provisions and a gain on the buy-back of the ordinary sukuk,” Dana said.

 

In Egypt, Dana said it received $49 million in payments during the first half of this year, bringing its total Egyptian trade receivables balance at the end of the period to $230 million. Egypt delayed payments to oil and gas firms when its economy was hit by years of instability after the fall of Hosni Mubarak in 2011.

 

Dana collected $42 million in the Kurdistan Region of Iraq during the first half, bringing total trade receivables outstanding there to $726 million, it said.

 

In 2007, Kurdistan awarded Dana and the UAE’s Crescent Petroleum a 25-year deal to develop the Khor Mor and Chemchamal gas fields. Austria’s OMV and Hungary’s MOL subsequently each took 10 percent of the venture.

 

But the project became entangled in allegations that the consortium had been underpaid for condensate and liquefied petroleum gas products supplied from Khor Mor.

 

Dana said on Thursday that the London Court of Arbitration would hear remaining contractual issues related to Kurdistan and further damage claims from the consortium and counter-claims by the Kurdistan Regional Government in two further hearings.

 

The first two-week hearing is set for Sept. 5 and the other is yet to be scheduled, but is expected to be in either the fourth quarter of this year or the first quarter of 2017, the company added.