Dana Gas profit edges down over Iraq ops
Sharjah, April 24, 2014
Dana Gas, a leading natural gas company in the region, posted a net profit of Dh571 million ($156 million) in 2013 compared to Dh605 million ($165 million) in 2012, at its eighth Annual General Meeting (AGM) in Sharjah.
Lower sales of LPG in the Kurdistan region of Iraq, along with an increase in royalty payments and higher depreciation, depletion and amortization expenses in Egypt, impacted the net profit, a company statement said.
“Dana Gas made solid progress in 2013 and we have seen a robust performance across our operations, despite ongoing economic and political uncertainty in the two principal countries in which we operate,” said Dr Adel Al-Sabeeh, chairman, Dana Gas.
“We are confident that Dana Gas is well-positioned and has the right leadership to tackle growth opportunities in the region. We remain committed to maximising value for our shareholders and look forward to future years with renewed confidence.”
Dana Gas increased revenue to Dh2.39 billion (US$ 652 million) from Dh2.32 billion ($633 million) in 2012 which was driven principally by an 8 per cent increase in gross production, reaching 64,700 barrels of oil equivalent per day (boepd).
The increase was led by Egypt which increased production by 14 per cent and contributed Dh1.5 billion ($417 million) to gross revenue as compared to Dh1.4 billion ($370 million) in 2012.
Cash balance improved by 24 per cent to Dh748 million ($204 million) by end of 2013 aided by a Dh194 million ($53 million) payment of outstanding receivables from Egypt in December 2013.
Dr Patrick Allman-Ward, CEO of Dana Gas, said: “From an operational standpoint 2013 was a very successful year. We increased production levels in Egypt and won working interest in a major new concession area which has high prospectivity.”
“In Kurdistan, the resumption of our LPG loading facilities is adding incremental revenue and will enhance profits going forward. We have also achieved progress in the development of the Zora gas field in the UAE which provides real growth opportunities. Overall we are confident that our steady progress in recent years has set the scene for further improved financial performance in the years ahead.”
In the UAE, Dana Gas is progressing rapidly with the development of the Zora Gas Field, and in November 2013, the Company awarded Adyard Abu Dhabi the Dh62.5 million ($17 million) contract for the fabrication of an offshore platform of the project.
In March 2014, the Company issued letters of intent for the onshore gas plant, offshore pipeline installation and line pipe procurement. The project is in line for first gas production in early 2015 with expected production of 40 mmscfd.
Dana Gas’s UAE Gas Project continues to await the delivery of gas from the National Iranian Oil Company (“NIOC”). Dana Gas’s joint-venture partner in the UAE Gas Project, Crescent Petroleum, continues to seek a legal ruling on the gas deliveries and expects a decision from the tribunal in this regard during 2014.
The AGM approved the Board of Directors’ recommendation to not distribute a dividend for the 2013 financial year. – TradeArabia News Service