Dana Gas reports strong profit in H1

Dana Gas announced its financial results for the six months ended 30 June 2012 with a net profit after tax of Dhs387 million, an increase of 79 per cent as compared to Dhs216 million in H1 2011. Revenue from the sale of hydrocarbons increased to Dhs1,254 million, with gross profit reaching Dhs 767 million. These figures represent increases of 1 per cent and 13 per cent respectively, compared to the same period last year. This is due to production growth in Kurdistan Region of Iraq (KRI) coupled with higher market prices for oil, condensate and LPG during the first six months of 2012. The above net profit excludes an unrealised loss of Dhs19 million Dana Gas’ 3 per cent shareholding in MOL, the Hungarian-listed oil and gas company and a strategic partner in Dana Gas’ Kurdistan operations. This loss is booked directly to equity in line with the Company’s published accounting policy, resulting in Total Comprehensive Income of Dhs368 million. Earnings before interest, tax, depreciation, amortisation and exploration (EBITDAX) was Dhs822 million compared to Dhs814 million in the same period last year. Commenting on the results, Dr Adel AlSabeeh, Chairman of Dana Gas, said: “We have achieved our revenue estimates for the first half and posted strong net profit figures of Dhs387 million. Our revenue collections were in line with expectation and we continue to have constructive discussions with both the Government of Egypt and the Government of the Kurdistan Region of Iraq on payment of the Company’s receivables.” He addded, “Overall this has been a reasonable six months financially and we look forward to the rest of the year with renewed confidence.” Ahmed Al-Arbeed, Chief Executive Officer of Dana Gas, added: “We have maintained strong levels of net production in the first half of the year.”