Dana Gas, the Sharjah based private sector gas company with major interests in Egypt and Iraqi Kurdistan, has posted another set of solid results, with net profit for the third quarter up a massive 400% on Q3 2010.
The company booked revenue of AED 465 million ($126 million) against AED 405 million ($110 million) in Q3 2010, with profit of AED 315 million ($85 million).
Dana also boosted production by 20% over the period, taking advantage of high oil prices.
Production in the Kurdistan Region of Iraq increased compared to 3Q 2010 as a result of both trains of the gas plant at the Khor Mor Field being in operation to cater for increased demand for gas from the power stations at Erbil and Suleymania.
In a statement to the Abu Dhabi Securities Exchange, Dana confirmed the Erbil and Suleymania stations are now receiving up to 300 million standard cubic feet of hydrocarbons per day, with average production of 296 million standard cubic feet per day of gas, 13,900 barrels per day of condensate, and 240 tons per day of LPG.
The Company made a Net Profit after tax of AED 143 million ($39 million) in the third quarter, which compares to AED 33 million ($9 million) in 3Q 2010. This increase in profitability reflects increased production volumes and the fact that an increased proportion of the Group’s sales are from petroleum liquids whose prices have risen significantly since the same period in 2010.
The company that it is in the process of refinancing with a $1 billion Sukuk (Sharia-compliant bond), and that is also taking advice on financial strategy and the group’s capital structure. Dana is still looking to list on the London Stock Exchange.
“Dana Gas continues to deliver strong performance and increases in profits driven by our successful operations, in spite of a globally challenging environment,” said Ahmed Al Arbeed, Dana Gas CEO, in a company statement. “We have and will continue to respond to challenges successfully and with confidence, ensuring that we maintain our operations uninterrupted while we manage our expenditures prudently.”
The group has oil and gas assets valued at $176 million.
