Abu Dhabi – Mubasher: Dana Gas reported a 41% increase in net profits to $24 million (AED 88 million) during the first quarter (Q1) of 2021, compared to $17 million (AED 62 million) in the year-ago period, according to the company's interim consolidated financials for the three-month period ended 31 March 2021.
Higher profits are attributed to the improvement in revenues from a 9% production increase in the Kurdistan Region of Iraq (KRI) and a reduction in finance cost due to lower borrowings in Q1-21 as compared to the corresponding quarter of 2020.
The company's revenues rose by 2% to $106 million (AED 389 million) in Q1-21 from $104 million (AED 382 million) in Q1-20.
The earnings before interest, tax, depreciation, and amortisation (EBITDA) decreased to $50 million (AED 183 million) in the first three months of 2021 from $52 million (AED 191 million) in the same period of 2020.
The CEO of Dana Gas, Patrick Allman-Ward, commented: "In the KRI we are moving ahead with our expansion plans to significantly boost production from 440 MMscf/d to 690 MMscf/d by April 2023. This will contribute positively to our top and bottom line."
It is noteworthy to mention that in 2020, the company registered net losses after tax of AED 1.4 billion, against net profits of AED 575 million in 2019.