Sharjah–based gas company Dana Gas has posted a record gross profit of AED 1.33 billion (US$362 million) for the year ended December 31, 2011
The company cited higher levels of production and higher international hydrocarbon prices as the key factors behind a 42 per cent increase on its gross annual revenue for 2011 compared to the 2010’s results.
Dana Gas, which has operations in Egypt, Iraqi Kurdistan and the UAE, posted gross annual revenues of AED 2.53 billion (US$689 million) for 2011.
Speaking at the company’s Annual General Meeting (AGM), Dana Gas chairman Hamid Jafar said, “2011 proved to be a very successful year for the company’s operations, despite the regional political and economic unrest.
“The oil and gas sector, particularly in Egypt and Kurdistan Region of Iraq, is facing financial challenges in the short term and we are working together with the host governments to maintain their supply of gas, while agreeing payment plans for overdue monies that are aligned to our shareholders’ interests and the respective countries,” he added.
Jafar told shareholders that production in Egypt for 2011 totalled 15.5 million barrels of oil equivalent (mmboe), averaging 42,500 barrels of oil equivalent per day (boepd).
Production for the year was aided by six new wells in country, which helped the company maintain production at a similar level to 2010, following a decline in production throughout 2011 from existing wells.
Dana Gas chief executive officer Ahmed Al-Arbeed told shareholders, “We have continued to grow our production and profits every year since we first started and we will continue to pursue our ambitious long-term growth strategy to deliver value to all of our stakeholders.”
Among the company’s latest developments is the recent completion and start-up of two new LPG processing trains in the Kurdistan Region of Iraq.
In Egypt it is currently developing a new natural gas liquids plant in Ras Shukheir, in which it owns a 26.4 per cent interest, in partnership with Egyptian Natural Gas Holding Company (EGAS) and Arab Petroleum Investments Corporation (APICORP).
Al-Arbeed, who told shareholders at the AGM that he would be retiring from full-time executive responsibilities in September 2012, said the company’s main focus throughout 2012 would be on growing its cash flows and maximising shareholder value.
“We plan to steadily build our asset base, albeit prudently managing our financial resources in light of regional and global circumstances,” he remarked.
