Sharjah-based natural gas company, Dana Gas, announced a 41% increase in its net profits during the first quarter of its 2021 year, going up from $17 million to $24 million, last March. According to Dr. Patrick Allman-Ward, CEO of Dana Gas, “Dana Gas has delivered a strong quarter with robust operational performance, continuing the positive momentum from the previous period.”
The improved performance was mainly due to a 9% production increase in the KRI. Realised price averaged $44/bbl for condensate and $33/boe for LPG compared to $41/bbl and $30/boe respectively in Q1 2020.
“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. We remain fully committed to managing our producing assets in Egypt for the benefit of all our stakeholders and focusing on evaluating the exciting potential of our offshore Block 6 Concession Area as quickly as possible,” says Ward.
The leading largest private sector natural gas company in the Middle East, Dana Gas, maintained a strong financial position, with increased production from the KRI and lower financing costs following the repayment of the Company’s outstanding Sukuk in Q4 2020. Despite adverse economic conditions, the company was able to maintain the dividend to shareholders, for the fourth consecutive year.
Group production in Q1 2021 averaged 64,900 boepd, a 2% increase as compared to 63,650 boepd in Q1 2020. The first quarter production increase was driven by the KRI, which grew by 9% to 35,300 boepd from 32,400 boepd, building on the significant production increase in Q4 2020 after the Khor Mor plant by-pass project was completed in July 2020. Production in Egypt declined by 5% to 29,050 boepd, which was more than offset by the increase in production in KRI.
After agreeing to lift the force majeure, the KM250 expansion project in Khor Mor- Kurdistan, is planned to resume in April 2023. The project construction work that had been put on hold due to the COVID pandemic, is now back on track with a further investment of $600 million by Pearl to boost output by almost 60%.
Dana Gas CEO Dr Patrick Allman-Ward said: “With our partners in Pearl Petroleum, we are proud to be investing further in the gas sector of the Kurdistan Region of Iraq, delivering a reliable source of cleaner energy, and supporting local economic development.
“The continuing receipt of payments in a timely manner gives confidence for our continued investment commitment as we enter the next exciting phase of growth with the Khor Mor expansion, which will be carried out under strict health protocols to ensure the safety of our staff and service providers.”
