Sharjah based Dana Gas has reported full year gross revenue and net profit for 2017 of $450mn and $83mn respectively, as compared to $392mn and a net loss of $88mn in 2016.
The turnaround was led by higher realised liquid prices, higher production in Egypt and tight management of operational expenses. Higher profit was also supported by the successful settlement agreement with the Kurdistan Regional Government (KRG). However, Q42017 net profit was impacted by an impairment charge of $34mn against the UAE Zora asset following the year-end reserve report.
2017 group average production increased to 67,600 barrels of oil equivalent per day (boepd), up 1% from 67,050 boepd in 2016. Egypt annual production was 5% higher at 39,500 boepd. Production from the Kurdistan Region of Iraq (KRI) was flat at 25,750 boepd when compared to 2016 and the UAE’s Zora Gas field produced 1,650 boepd in 2017 as opposed to 2,700 boepd in 2016.
The average realised liquid price was $40 per barrel of oil equivalent (boe), compared to $33 boe in 2016, a 21% increase. The group average production in Q42017 was lower at 67,350 boepd, compared to 69,450 boepd in 2016.
The year-end cash balance stood at $608mn, double the $302mn reported at the end of 2016. This cash balance is largely a consequence of a $210mn dividend received from Pearl Petroleum Company as part of the KRG settlement, a $110mn industry payment in Egypt and $22mn of condensate export in Egypt. The cash balance does not include $140mn held by Pearl for the development of KRI assets.
Dr Patrick Allman-Ward, CEO of Dana Gas, stated, ““Our settlement agreement with the Kurdistan Regional Government was a major milestone for the Company. This has allowed us to start to fully develop the Khor Mor and Chemchemal fields, two truly world-class gas fields, with in-place volumes of approximately 75 trillion cubic feet of wet gas and 7 billion barrels of oil, to the benefit of the people of the Kurdistan Region and all of Iraq. Our targeted production increases in the KRI are 20% this year and 170% in the next two to three years.”
