Dana Gas has announced that it has witnessed a net profit of 70 per cent in Q2 2014 to US$46mn as compared to US$27mn during same period last year
The increase in revenue was due to increased production across the group which increased by 17 per cent on a year-on-year basis and higher realized hydrocarbon prices during the period, the energy company added.
During first half of 2014, profit from operations increased by 68 per cent to US$91mn as compared to US$54mn in first half of 2013. The gross revenues and profit were US$367mn and US$172mn respectively.
Dana Gas said that a combined increase in production in Egypt and resumption of LPG production in Kurdistan Region of Iraq, along with higher energy prices and a reduction in cost of sales were the major contributors towards this rise in revenue and gross profit.
The average overall production volumes increased by 17 per cent in Q2 2014 to 72,200 boepd compared to 61,700 boepd in the same period last year. Dana Gas Egypt experienced a continued upturn in average Q2 production to 42,950 boepd, a 25 per cent increase vis-à-vis the 34,300 boepd achieved in Q2 2013.
In Kurdistan Region of Iraq, the company’s share of production in Q2 2014 was also higher by seven per cent to 28,800 boepd vis-à-vis 27,000 boepd in 2Q 2013.
The company saw its quarterly share of production in the Khor Mor Field increase to 28,800 boepd as compared to 27,000 in Q2 2013, due to resumption of LPG production which has seen a full restoration of production capacity.
Patrick Allman-Ward, CEO of Dana Gas, said, “Dana Gas has continued to deliver impressive production growth and consistent operational and financial performance despite ongoing challenges in our key markets. This is the result of a business strategy that has focused on operational delivery whilst addressing the issue of unpaid receivables from our government clients and diversifying our business exposure.
“The focus on operational performance has seen us achieve better operating profits and margins, revenues and a 17 per cent increase in production output in Q2. We continue to address and make progress on our overdue receivables. We continue to focus on diversification, and are progressing the development of the Zora field in the UAE and review other new business development opportunities.”
In Egypt, Dana Gas said that it will continue to concentrate on its most commercial and long-term production growth opportunities in the Nile Delta and offshore Eastern Mediterranean.
