Dana Gas, one of the largest regional private sector natural gas companies in Middle East saw its net profit drop from $165 million in 2012 to $156 million in 2013.
The fall in net profit resulted from lower sales of LPG in the Kurdistan region of Iraq, coupled with an increase in royalty payments and higher depreciation, depletion, and amortisation expenses in Egypt also contributed to the drop.
Dana Gas however saw a growth in revenues, which rose from $630 million in 2012 to $655 million in 2013. The increase was primarily driven by an eight per cent increase in gross production, reaching 64,700 barrels of oil equivalent per day. Egypt contributed $411 million, representing a 14% increase in gross revenues, up from $384 million in 2012.
“From an operational standpoint, 2013 was a very successful year. We increased production levels in Egypt, and won working interest in a major new concession area, which has high prospectivity,” said Dr Patrick Allman-Ward, chief executive officer, Dana gas.
In 2013, Dana Gas Egypt announced achieved record gas production levels equivalent to 41,500 barrels per day (bpd), which included associated liquids.
In the Kurdistan Region of Iraq, the company’s full year share of production in the KhorMor field remained steady at 27,600 bpd.
“In Kurdistan, the resumption of our LPG loading facilities is adding incremental revenue and will enhance profits going forward. We have also achieved progress in the development of the Zora gas field in the UAE, which provides real growth opportunities,” said Allman-Ward.
