The privately-owned energy firm Dana Gas, has posted an 85 per cent slump in its second-quarter net profit continued decline of hydrocarbon prices and lower production, according to a statement to Abu Dhabi Securities Exchange.
The oil and gas exploration company, which made a net profit of AED25 million in the three months to June 30, down from AED169m in the same period a year ago, had reported a sharp fall in earnings in the previous two quarters too.
The Sharjah, UAE-based firm’s total revenue in Q2 was AED425m, a decrease from AED685m a year earlier.
Dana said in the statement it would increase production in Egypt and the UAE in the second half of 2015, and it expects the revenue to grow given the investments in the expansion programme.
Production in Dana’s operations in Egypt fell by 18 per cent with delivering a total production of 35,010 barrels of oil equivalent per day (boepd) compared to 42,950 boepd in second quarter last year.
Dana Gas has long been in a dispute with the Kurdish Regional Government (KRG) in Iraq over payment arrears of US$2 billion. In the Kurdistan region the share of production rose 4 per cent to 30,000 boepd during the second quarter of this year. It showed a slight increase over Q2 2014 production of 28,800 boepd, driven by increase in LPG production, the statement said.
“Despite the steep fall in global oil prices over the past year and events in the region, Dana Gas has remained profitable and strengthened its operations with new investments,” said Dr. Patrick-Allman Ward, CEO of Dana Gas.
“We are looking forward to additional production and cash generation in the second half of the year from our new investment program in Egypt which is now under way as well as from our Zora field in the UAE coming on-stream. With our continued cost discipline and this expected increase in production, Dana Gas is well positioned to benefit from any improvements in the oil price in the future,” he added.