Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, has announced its financial results for the quarter ending 31st March 2010.
Revenue from the sale of hydrocarbons increased to US$112 million, with gross profit reaching $44.1 million. These figures represent increases of 66% and 138% respectively, compared to the same period last year. This is due to very strong production growth, amounting in aggregate to 36%, from the company’s operations in Egypt, where nine fields are now producing, and in Iraq where production from the Khor Mor field continues to increase compared to 1Q 2009. It is also due to higher market prices for oil, condensate and LPG during 2010.
Earnings before interest, tax, depreciation, amortization and exploration increased by just over 100% to $62.07 million as compared to the first quarter of last year. The company made a net profit after tax of $9 million in the first quarter compared to a loss of $8.7 million in the first quarter of 2009.
The above Net Profit after tax excludes an unrealized gain of AED 140 million in the quarter for the Company’s investment in MOL (the Hungarian oil and gas company, who are one of our partners in Kurdistan), booked directly to equity in line with the Company’s published accounting policy. The “Comprehensive Income” for the 3 month period is AED 173 million compared to a loss of AED 32 million in same period for 2009.
Dana Gas Egypt’s operations continue to deliver strong results, producing 3.53 million barrels of oil equivalent during the first quarter, an increase of 33% compared to the same period last year, which included production from the Sama field which was brought on stream in February 2010, eight months after its discovery. The company added two new gas discoveries in the Nile Delta, El-Panseiya-1 and South-Faraskour-1, from a total of three exploration wells drilled during the quarter, building on the 2009 performance of eight discoveries from twelve exploration wells.
In the Kurdistan Region of Iraq Dana Gas, net to its 40% share, produced 0.97 million barrels of oil equivalent of gas and condensate during the period, an increase of approximately 50% over the same period in 2009. Construction of the LPG Plant at Khor Mor is nearing completion and following commissioning activities, will further increase production by year end.
Commenting on the quarterly performance, Dana Gas Chief Executive Officer, Ahmed Al-Arbeed, said: “I am pleased to be able to report that Dana Gas is delivering good financial results from its strong operational performance in both Egypt and Iraq. In Egypt, we have an active development programme with eight discoveries to bring on stream and our fourteen well exploration programme for 2010 is off to a very satisfactory start with two discoveries from our first three wells. We continue to target a 20% increase in production for the full year compared to 2009.”
“In the Kurdistan Region of Iraq, production continues to grow as we supply gas to meet the demands of the Erbil and Bazian power stations. In the past few days, we have commenced gas production through the first train of our LPG plant with LPG production to commence in the third quarter” said Mr. Al-Arbeed.
James Dewar, Chief Financial Officer said “These are a good set of results and are in line with our expectations for the quarter. As Dana Gas’ production volumes continue to grow, so does our ability to deliver increasing after tax profits and operational cash flow. As we look ahead, our financial position remains robust and we continue to maintain a good level of liquidity to manage our operational needs”.
