Dana Gas H1 profit jumps 77% to Dh84.4 million

dubai — Sharjah-based Dana Gas on Tuesday said its net profits in the first-half jumped 77 per cent to $23 million (Dh84.4 million) as compared to $13 million for the same period last year.

Its revenues rose 25 per cent to $222 million from $178 million. Average production also rose six per cent from 63,700 boepd to 67,550 boepd.

“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,” Dr Patrick Allman-Ward, CEO, Dana Gas, said. “Furthermore, we have plans to drill three exploration wells on Block 1 in Egypt in Q4 as part of our concession activity commitment. 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,” he added. During the second quarter 2017, the company reported gross revenues of $104 million and a net profit of $12 million as compared to $96 million and $7 million, respectively, in Q2 2016.

The company attributed improved profitability to increase in gross revenues; increase in profit entitlement from Kurdistan region of Iraq, reduced operational expenditures and a reduction in finance costs by $8 million as a result of settling Zora and other loans.

In the first half, operational expenditures dropped 7 per cent to $25 million. Capital expenditure was down 84 per cent to $13 million.

— waheedabbas@khaleejtimes.com