Dana Gas operating profit up 67pc
Shrajah, May 15, 2014
Dana Gas, the Middle East’s largest regional private sector natural gas company, reported a 67 per cent rise in operating profits in the first quarter of this year to $45 million as compared to $27 million in Q1 2013.
The figure excludes the one-off gains of $39 million the company made arising out of the partial sale of MOL shares in Q1 2013, the company said in a statement.
Gross revenues achieved in Q1 were $180 million, 18pc higher than Q1 2013’s revenue of $152 million. Increase in production (and sales) and tighter control of operational expenditure were the major contributors towards this rise in revenue and operating profit.
The company’s share of overall production for Q1 2014 increased by 12pc to register an average of 68,800 barrels of oil equivalent per day (boepd) as compared to 61,400 boepd in the same period last year.
Dana Gas Egypt experienced a large upturn in average production to 39,100 boepd, a 17pc increase vis-à-vis the 33,400 boepd achieved in Q1 2013. In the KRI, the company’s share of production was also higher by 6pc to 29,300 boepd vis-à-vis 27,700 boepd in Q1 2013.
The company received $3 million in Egypt in Q1 this year and did not receive any payment from the Kurdistan Regional Government (KRG). This resulted in trade receivables being higher by $68 million to $583 million (FY2013: $515 million). As a result, the company’s cash balance was $155 million as at the end of the quarter. Egypt’s trade receivables stood at $278 million following the offset of $37 million against the North Al Arish Offshore Block-6 signature bonus and amounts payable to government-owned contractors in Egypt.
Total assets were unchanged at $3.53 billion.
As of 30 April 2014, the company had received voluntary conversion notices amounting to $65.4 million, reflecting positive investor sentiment and helping the company lower its outstanding debt and cash outflow.
Dr Patrick Allman-Ward, chief executive officer, said: “We have made a solid operational start to the year and have delivered on our strategy of increasing output through organic growth, resulting in a 12pc increase in production output to 68,800 boepd. This reflects the quality of our assets in Egypt and the KRI and provides confidence for additional growth potential going forward.
"For the time being our capital expenditure will remain in-line with our collections. We are committed to further increasing production in Egypt and continue our discussions with the relevant authorities to resolve the matter of overdue receivables. In Kurdistan, we have increased production by 6pc through increased supply of LPG. The arbitration initiated by us and our consortium partners commenced in January 2014 with the successful formation of the Tribunal and proceedings are now ongoing. Regardless, we continue to operate our gas production facilities in Khor Mor at full capacity to provide the much needed power supply to the people of the Kurdistan Region of Iraq.” - TradeArabia News Service