Abu Dhabi – Mubasher: Dana Gas, listed on the Abu Dhabi Securities Exchange (ADX), has reported a 150% year-on-year hike in its profits for the first quarter of 2019.
Net profit amounted to $35 million (AED 128 million) in the three-month period ended last March, compared to $14 million (AED 51 million) in Q1-18, the Middle East’s largest regional natural gas company said in a statement.
The company attributed the surge in Q1-19 profits to an increase in the Kurdistan Region of Iraq (KRI) production that added $14 million and redeemed the effect of lower output in Egypt and lower realised prices.
Additionally, the Sharjah-based gas company has cut financing costs by $10 million in Q1-19 following the successful Sukuk restructuring and buyback programme, according to the statement.
On the other hand, the company’s revenue remained flat at $119 million (AED 436 million) during the first three months of 2019, versus $120 million (AED 440 million) in the prior-year period.
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,” Allman-Ward added.
“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,” he noted.
Furthermore, the company’s total production in Q1-19 stood at around 68,700 barrels of oil equivalent per day (boepd), up 6% year-on-year from 65,000 boepd.
The increase in Q1-19 production was mainly driven by the KRI output which jumped by 24% to 32,750 boepd from 26,300 in Q1-18, the company highlighted.
In the full-year 2018, Dana Gas reported it had turned to losses, incurring a net loss, including the Impairments, of AED 681 million ($186 million), against net profits of AED 304 million ($83 million) a year earlier. However, net profits, excluding impairment totalled AED 234 million ($64 million) last year.