Dana Gas swings to Q4 profit, beats analysts view
Dubai, January 31, 2011
UAE-based Dana Gas reported a higher-than-expected fourth quarter net profit of Dh59 million ($16.07 million), helped by higher production after posting a loss of Dh193 million a year ago.
The Gulf's only listed natural gas company, Dana Gas also reported a full-year profit of Dh158 million in a statement on Monday, a jump of 80 per cent, as higher production and a rise in oil prices boosted earnings.
It made Dh99 million in the nine-month period to September 30. Full-year production rose 31 per cent, the statement said.
Four analysts had expected Dana to post an average net quarterly profit of 42.98 million dirhams according to a Reuters poll.
The company, which owns assets in Egypt, made a fourth-quarter net profit of Dh59 million, Reuters calculated from previous financial statements. It made a Dh193 million loss a year ago after being hit by exploration write-offs and impairment provisions.
Dana shares have been under pressure recently as investors worried over the company's exposure to crisis-hit Egypt. The stock fell nearly 10 per cent on Sunday.
Earlier this month, brokerage AlembicHC cut its rating on Dana to neutral from overweight. The company said it made its fourth gas find in Egypt in September.
The well has preliminary estimated reserves of 50 to 90 billion standard cubic feet of gas, with 1 to 2 million barrels of associated condense.-Reuters