Dana Gas posts $125m profit in 9 months
SHARJAH: Dana Gas, the Middle East’s largest regional private sector natural gas company, announced its financial results for the third quarter, ended 30 September 2017.
The comapny posted a net profit of $125 million and $102 million for 9-month and Q3 2017 respectively. This is considerably better than the $26 million and $13 million reported in the same period 2016.
The Company reported 9-month 2017 revenues of $330 million and gross profit of $86 million, 18% and 38% higher compared to $280 million and $63 million in the same period 2016. The company recorded Q3 2017 generated revenues of $108 million and gross profit of $27 million, up 6% and 28% respectively on the $102 million and $21 million reported in Q3 2016.
Several factors led to the Company posting a strong net profit. The KRG Settlement Agreement saw a reversal of the provision for payments to the KRG, as the balance of unpaid receivables was booked to new petroleum costs, and another income accrual of $21 million in Q3, linked to dividend distribution by Pearl Petroleum.
Dr Patrick Allman-ward, CEO, Dana Gas, said: “We are very pleased with the outcome of the Settlement Agreement reached with the KRG which we believe is a real win-win outcome and an opportunity to start investing once again in our world class assets there and grow our production significantly in the short to medium term. Our operations and production have been solid over the last nine months. We are producing on average of 67,600 boepd and expect to conduct a small but exciting drilling campaign in Egypt soon. Over the first nine months we posted a net profit of $125m, supported by higher volumes, higher realised prices and as a result of accounting changes linked to the Settlement Agreement. However, business challenges still remain. There has been an increase in geopolitical uncertainty in the Kurdistan Region of Iraq and continued sporadic and deficient payments from Egypt. In the light of these ongoing business challenges we will continue to keep our overall spending tightly managed.”
Other factors that boosted net profit were: higher average realised prices of $39 per barrel of oil equivalent (boe) in the 9M 2017 versus $31 per boe in the 9M 2016.