Dana Gas, a leading regional natural gas company, has posted revenues of $541 million during the first nine months of the year  period as against $466 million in 2013, marking a 16 per cent increase.

Net profit in the nine month period of 2014 was also high at $129 million as compared to $121 million for the same period of 2013.

Profit from operations was higher by 57 per cent to $129 million as compared to $ 82 million that was achieved in the January-September (Jan-Sept) period of 2013, if a one-off gain of $39 million following the partial sale of MOL shares in the first half of 2013 is excluded.

Production was up 11 per cent at 70,500 barrels of oil equivalent per day (boepd) as compared to the average daily production of 63,400 boepd achieved in Jan-Sept 2013.

The company posted robust third quarter (Q3) revenue of $174 million ($170 million in Q3 2013) and gross profits of $79 million ($71 million in Q3 2013). Net profits were up 36 per cent to $38 million ($28 million in Q3 2013) underpinned by an increase in production and a strong focus on cost discipline.

Production during the third quarter increased by 3 per cent to reach 68,700 boepd compared to 66,850 boepd in Q3 2013.

Operationally, the third quarter saw the company sign two major agreements in Egypt and took a significant step forward in restarting income generation in the Kurdistan of Iraq (KRI) through local sales of liquid products.

Cash from operations and cash collections improved during Q3 2014, as the company received a total of $71 million during the quarter.

The company’s cash collection in Egypt was $53 million, out of which $36 million was in local Egyptian Pounds earmarked to settle overdue payables to service providers to its Egypt operations and $11 million is ring-fenced towards funding for the previously announced GPEA in Egypt, wherein it was agreed that the money received would be reinvested into this project in Egypt going forward.

In relation to its Kurdistan operations, the company received a cash advance amounting to $18 million as part of its 40 per cent share in PPCL in the Kurdistan Region of Iraq.

Dr Patrick Allman-Ward, CEO of Dana Gas, said: “Our continuous focus on operational excellence and cost discipline is paying off resulting in significantly improved net profits for the quarter and year to date. We have made good progress in restarting cash flow in KRI through the initiation of local sales of liquid products.”

“Our operations have continued uninterrupted despite the ongoing security situation in Iraq. We remain fully committed to Egypt and are very pleased to have found a win-win solution for all parties through the Gas Production Enhancement Agreement which commits the Company to making significant new investments which will result in higher production for the country and allows Dana Gas to recover outstanding receivables within a defined period of time,” he added. – TradeArabia News Service