Dana Gas reports Q1 net profit inches up to $66 million
Regional private sector natural gas company Dana Gas on Tuesday reported a net profit after tax of Dh241 million ($66 million) for the first quarter of 2013, up 17 per cent compared to Dh206 million reported in the first quarter of 2012.
Revenue from the sale of hydrocarbons during the period was Dh557 million ($152 million).
However, revenues and gross profit declined during the quarter owing to a conservative cash policy towards capital expenditure and a temporary suspension of Liquefied Petroleum Gas (LPG) production in Kurdistan Region of Iraq (KRI).
Revenues and gross profits are expected to increase as new discoveries in Egypt are brought online and upon the resumption of LPG production in Kurdistan in June 2013 following the completion of repairs to the LPG loading bay.
“Our disciplined approach and long-term business strategy has allowed Dana Gas to achieve an encouraging first quarter while completing the refinancing of the sukuk and posting an increase in net profit. We are committed to expanding regionally and were successful in our bid to be awarded an oil and gas prospecting project in northern offshore Egypt as well as pre-qualifying in Lebanon’s first offshore licensing round,” Dr Adel Al Sabeeh, chairman of Dana Gas
The group’s net production averaged 61,400 barrels of oil equivalent per day (boepd) from its interests in Egypt and the KRI during the three months ended 31 March 2013.
“We have had an active start to the year. Egypt and Kurdistan have increased their quarterly production as we brought on stream discoveries, added compression facilities to enhance current production. These developments, combined with the completion of the sukuk refinancing have meant we can approach the rest of 2013 with renewed confidence and ensure our future growth plans deliver value to our stakeholders,” said Rashid Al Jarwan, executive director and acting chief executive officer of Dana Gas
Dana Gas Egypt was a successful bidder in the Egyptian Natural Gas Holding Company 2012 International Bid Round that took place on 18th April 2013. It was awarded 100 per cent working interest in the North El Arish Offshore (Block 6) concession area. Upon completion of the necessary procedures, the concession will be handed over to Dana Gas in the fourth quarter of this year. The company has also been pre-qualified as a non-operator in Lebanon’s first Offshore Licensing Round where 10 deep water exploration blocks are available.
On May 8, 2013, Dana Gas completed the refinancing of the $1 billion trust sertificates (Sukuk-al-Mudarabah).