UAE: Dana Gas Reports 1H Results

Dana Gas PJSC announced its financial results for the six months ended 30 June 2012 with a net profit after tax of AED 387 million, an increase of 79% as compared to AED 216 million in H1 2011.

Revenue from the sale of hydrocarbons increased to AED 1,254 million, with gross profit reaching AED 767 million. These figures represent increases of 1% and 13% respectively, compared to the same period last year. This is due to production growth in Kurdistan Region of Iraq (KRI) coupled with higher market prices for oil, condensate and LPG during the first six months of 2012.

The above net profit excludes an unrealised loss of AED 19 million on Dana Gas’ 3% shareholding in MOL, the Hungarian-listed oil and gas company and a strategic partner in Dana Gas’ Kurdistan operations. This loss is booked directly to equity in line with the Company’s published accounting policy, resulting in Total Comprehensive Income of AED 368 million.

Earnings before interest, tax, depreciation, amortisation and exploration (EBITDAX) was AED 822 million compared to AED 814 million in the same period last year.

Commenting on the results, Dr. Adel AlSabeeh, Chairman of Dana Gas, said:

“We have achieved our revenue estimates for the first half and posted strong net profit figures of AED 387 million. Our revenue collections were in line with expectation and we continue to have constructive discussions with both the Government of Egypt and the Government of the Kurdistan Region of Iraq on payment of the Company’s receivables. Overall this has been a reasonable six months financially and we look forward to the rest of the year with renewed confidence.”

Ahmed Al-Arbeed, Chief Executive Officer of Dana Gas, added:

“We have maintained strong levels of net production in the first half of the year. Good progress is being made on our drilling programme in Egypt, with one new field discovery (the West Al Baraka Field) in the South of the country. We plan to drill further exploration and development wells in Northern Egypt. I am also pleased to report that the commissioning and start-up of the Natural Gas liquids plant in Ras Shukheir (Egypt) is advancing well and should be operational in H2 of this year.”

Production and Development

The Group’s net production averaged 60,950 barrels of oil equivalent per day (boepd) from its interests in Egypt and the KRI during the six months ended 30 June 2012.

Dana Gas Egypt produced gas, LPG, condensate and crude oil at an average rate of 32,750 boepd in the first half. Production is expected to increase later in the year as compression facilities and new production wells are added, and two new fields are brought on-stream.

In the KRI, the Company’s 40% share of production in the Kor Mor Field for the first half of the year continued to increase, achieving an average rate of 28,200 boepd (2011: 19,800 boepd). This 42% increase in production was mainly due to increased gas deliveries achieved by running the two LPG trains within the plant and the early production facility (EPF) in parallel; as well as including the condensate and LPG extracted from the additional gas.

1 United Arab Emirates dirham = 0.272264 U.S. dollars

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LNG World News Staff, August 13, 2012