UAE-based Dana Gas saw a three-fold jump in profits last year boosted by higher production and prices.
Abu Dhabi-listed Dana reported full-year net profit of Dh506 million (US$138 million), up from Dh158 million in 2010. Nine-month profit to September 30 was Dh359 million.
Average production grew 19 per cent to 66,200 boepd last year mainly due to an increased output from Kurdistan as it starts two LPG production units in northern Iraq, the company said.
The group, which focuses operations in Egypt and Kurdistan, saw its gross proven reserves at 88 million boe at the end of 2011.
The company said it has received Dh649 million in payments from Egypt and the Kurdistan region of Iraq last year.
“We are now very focused on receivables collections while preserving our assets for benefit of all stakeholders,” said Ahmed Al-Arbeed, chief executive of Dana Gas.
The Gulf’s only listed natural gas firm has faced payment delays for gas delivered to Egypt, due to political unrest.
“The consequences of the so-called "Arab Spring" are presenting the oil and gas industry with considerable challenges in the short term, and Dana Gas is not immune to these,” said Hamid Jafar, chairman of Dana Gas.
Dana Gas shares have dropped 42 per cent in the past year on concern it won’t have enough money to repay a US$1 billion Islamic bond due in October.
Dana, which hired Deutsche Bank to advise it on the October convertible Islamic bond according to sources, made no reference to how it will repay the outstanding US$920 million on the sukuk.
Oil and Gas News | Middle East
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