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Dr Patrick Allman-Ward

Dana Gas posts 150pc jump in Q1 net profit

SHARJAH, May 6, 2019

Dana Gas, a leading natural gas company in the Middle East, has posted a net profit of reaching $35 million (Dh 128 million) in the first quarter (Q1) of the year as compared to $14 million in Q1 2018, marking an increase of 150 per cent.

The higher net profit was principally due to an increase in KRI production which added $14 million and offset the impact of lower production in Egypt and lower realised prices. Furthermore, a saving of $10 million of Sukuk profit payments was recognised during the quarter following the successful Sukuk restructuring and buyback programme.

Revenue remained flat at $119 million as compared to $120 million in Q1 2018 despite the decline in realised prices and production decline in Egypt, which was offset by a significant increase in output in KRI.

Dr Patrick Allman-Ward, CEO of Dana Gas, commented: “We have started the year as we left off in 2018 with a strong operational focus and good financial results. Our revenues and cash-flow are robust and we more than doubled our net profit to $35 million this quarter.

“Operationally, we have signed a 20-year gas sales agreement with the KRI which enables us to go-ahead with our expansion plans to increase our production from the current 400 to 650 MMscf/d by 2021. In Egypt, we are moving ahead with plans to spud the high-impact, offshore Merak well, which holds a potential 4 to 6 Tcf of gas and if successful will be a ‘game-changer’ for the Company.”

Production & Operations Group production in Q1 averaged 68,700boepd, a 6 per cent increase as compared with 65,000 boepd in Q1 2018. The first quarter production increase was led by the KRI, which leapt 24 per cent to 32,750 boepd from 26,300 in Q1 2018, as a result of the debottlenecking project.

The company continues to pursue its short and mid-term growth projects. In Egypt, Dana Gas contracted for a drillship to drill the high-impact multi-Tcf Merak well, Block 6, offshore Egypt. The well is set to spud in May, and drilling should take around 60-days and so results should be known in the third quarter 2019. – TradeArabia News Service




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