Sharjah-based Dana Gas reported a 71 per cent increase in second quarter net profit on the back of reduced investments and significant drop in operational expenses.
One of the region’s biggest natural gas companies, Dana made a net profit of $12 million in the three months ending June 30, as compared to $7m recorded in Q2 2016.
Gross revenues for the period were $104m as compared to $96m in the previous year.
With assets in the UAE, Egypt and the Kurdistan regional government (KRG), the company’s net profit in the first half of the year was $23m, up 77 per cent from $13m in the corresponding period last year.
The company said the solid increase in the half-year profitability was due to several factors, including an increase in the profit entitlement from Kurdistan Region and the positive impact of a cost management program, which saw optimisation of operating costs by seven per cent, as well as a $5 million increase in other incomes.
“We posted higher revenue and nearly doubled our net profit to $23 million. We maintained strong production numbers by adding a further 13 per cent output in Egypt, despite the planned shutdown of the El Wastani Gas Plant, which was completed successfully and without incident,” said Dr Patrick Allman-Ward, CEO, Dana Gas.
“Furthermore, we have plans to drill three exploration wells on Block 1 in Egypt in Q4 as part of our concession activity commitment,” he added.
Total average group production was 67,550 barrels of oil equivalent per day (boepd) in the first half 2017, six per cent higher compared to H1 2016. The increase in production was driven by higher output in Egypt, up 13 per cent and consistent performance in KRI.
“We remain excited about the potential for medium to long-term growth but also recognise the need to manage the short-term cash collection challenges until we recover affirmed receivables and thereby realise the enormous value of our assets,” Dr Allman-Ward explained.