Dana Gas posts $125m profit in 9 months

The Gulf Today - Business - - FRONT PAGE -

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.

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