Dana Gas H1 profit rises 4%
dubai — Sharjah-based Dana Gas on Tuesday said its first-half profits rose four per cent year on year to Dh88 million.
The company posted secondquarter net profit of $10 million (Dh37 million), $2 million lower due to the one-off sukuk restructuring costs.
The restructuring has delivered a 50 per cent reduction in sukuk profit rate to four per cent, reducing annual debt service costs by an estimated 63 per cent.
“We have delivered a strong financial performance with profits up to $24 million [Dh88 million] and up to $50 million [Dh183 million] excluding one-off sukuk costs, a 117 per cent increase. The reduction in the sukuk profit rate will improve the company’s financial position and ability to fund future dividends,” said Patrick AllmanWard, CEO of Dana Gas.
Revenue increased six per cent to $236 million (Dh865 million) as a result of higher realised prices mainly for condensate, which contributed $33 million (Dh121 million), helped offset a production decrease in Egypt and the UAE, which together had an impact of $19 million (Dh70 million).
On an operating basis, the Dubailisted firm said gross profit increased by 39 per cent to $82 million (Dh300 million) due to improved price realisation and cost control.
The sukuk restructuring has recently been completed with the issuance and listing of a new sukuk.
“The new sukuk is a fair and consensual deal for the benefit of all our stakeholders and received over 90 per cent votes in favour from shareholders and sukuk holders. It is a ringing endorsement that the overwhelming majority of sukuk holders chose to remain invested in the company.”