Dana Gas records $33m profit
sharjah — Dana Gas on Thursday posted a preliminary net profit of $33 million for 2016, and a full year revenue of $392 million.
Total average production in 2016 increased by five per cent to 67,050 barrels of oil equivalent per day (boepd), from 63,900 boepd in 2015. The average realised liquid price was $33 per barrel of oil equivalent (boe), compared to $45 boe in 2015.
Dr Patrick Allman-Ward, CEO of Dana Gas, said: “We are pleased to report a strong operational performance in 2016 with total group production reaching 70,000 boepd in the fourth quarter. We have continued to improve significantly our margins by reducing overheads and operational expenditure. Unfortunately, we still face challenges around collections, which were disappointing in Egypt last year, and we must therefore balance further investment in the country with collections going forward. The situation around lack of payment in Egypt coupled with our sukuk maturity due at the end of October this year means that we must remain focussed on shortterm cash preservation.”
Despite this backdrop, the CEO noted that the medium term outlook for Dana Gas remains exciting. “The company has material exploration upside in Egypt, world-class fields in Kurdistan to be developed and is making progress towards successful resolution on its arbitrations.”
Dana Gas’ capital expenditure in 2016 was $122 million, with the majority of that capital being invested in Egypt. The company’s year-end cash and bank balance stood at $302 million, down from $470 million at year-end 2015.
— business@khaleejtimes.com