Abu Dhabi – Mubasher: The net profit of Dana Gas leapt by 246% to $142 million (AED 521 million) during the period from January to September 2019, versus $41 million (AED 149 million) in the same period in 2018.
The rise in profit is boosted by the higher other income totalling $126 million (AED 462 million), which was partially offset by an impairment provision of $60 million (AED 220 million) related to the Merak-1 well in Egypt that was drilled over the third quarter, said a press release on Thursday.
The net profit from core operations came in $76 million (AED 279 million) over the same period in 2019, 85% up from $41 million (AED 149 million) a year earlier, backed by the higher production in Kurdistan Region of Iraq (KRI) and lower debt servicing cost.
The company’s revenues grew by 2% at $357 million (AED 1.3 billion) over the period from January to September of the year, compared to $351 billion (AED 1.29 billion) in the previous year. The higher production added $32 million (AED 117 million), while the company’s topline declined by $26 million (AED 95 million) on reduced realised prices.
During the third quarter of 2019, the net profit remained unchanged at $17 million (AED 61 million), after adjusting for one-off items. Similarly, revenues stabilised at $115 million (AED 422 million) in Q3-19.
“Our strong financial and operational performance over the first nine months of 2019 is a testament to the company’s growing strength as production increases and collections improve. We are also moving ahead with the development and construction of the first of our two gas processing trains in the KRI, which will allow us to produce and sell an additional 250 MMscf/d of gas by 2022,” said the CEO of Dana Gas, Patrick Allman-Ward.
In addition, the company’s average production increased by 8% to 67,100 barrels oil equivalent per day (boepd) in the 2019 period from 62,250 boepd a year earlier, with the KRI’s output soaring by 23% to 31,800 boepd in the 2019 time frame from 25,800 boepd, whereas Egypt’s output has slid by 3% to 33,600 boepd.
Dana Gas’ collections hiked by 16.7% year-on-year to AED 844 million ($230 million) during the first nine months of 2019. The firm managed to cut its unpaid receivables to $119 million (AED 436 million) in the nine months period in 2019, registering a 43% year-on-year drop.
Over the first half of 2019, the company achieved a net profit of $140 million (AED 513 million), compared to $24 million (AED 88 million) in the year-ago period
