Dana Gas Profits Jump 77 Percent as Energy Prices Rise

Dana Gas, the Sharjah-based natural gas company, reported on Tuesday a 77 per cent jump in its net profit for the first half of 2017 on the back of lower costs and higher energy prices.

In the first half, the company recorded $23 million in net profits, up from the $13 million recorded in the same half of 2016 as operating costs fell 7 per cent. Capital expenditure was also axed by 84 per cent, supporting the increase in profitability, as revenues grew.

The figures put net profit in the second quarter of 2017 alone at $12 million, up 71 per cent from the $7 million recorded in the second quarter last year.

The gains in Dana Gas’s profits were supported by a 6 per cent increase in production levels in the first half of the year, with the company producing an average of 67,550 barrels of oil equivalent per day.

Meanwhile, average energy prices in the first half were $40 per barrel of oil equivalent compared to the $30 average in the first half of 2016. That, coupled with higher production, drove gross revenues 25 per cent higher year-on-year to reach $222 million in the first half.