Dana Gas, the Middle East’s largest regional private sector natural gas company, reported a 70% jump in net profit to $ 46 million (AED 169 m) in the second quarter of this year, as compared to $ 27 million (AED 100 m) in 2Q 2013.
The increase in revenue was due to increased production across the Group which increased by 17% on a year-on-year basis and higher realized hydrocarbon prices during the period, Dana Gas said in a statement.
During first half of 2014, profit from operations increased by 68% to $ 91 million (AED 333 m) as compared to $ 54 million (AED 198 m) in 1H 2013. This excludes the one-off gains of $ 39 million (AED 143 million) arising out of the partial sale of MOL shares in 1H 2013. Gross revenues and gross profit were $ 367 million (AED 1.35 bn) and $ 172 million (AED 630 m), 24% and 25% better than in 1H 2013. A combined increase in production in Egypt and resumption of LPG production in the Kurdistan Region of Iraq (KRI), along with higher energy prices and a reduction in cost of sales were the major contributors towards this rise in revenue and gross profit.
Average overall production volumes increased by 17% in 2Q 2014 to 72,200 barrels of oil equivalent per day (boepd) as compared to 61,700 boepd in the same period last year. Dana Gas Egypt experienced a continued upturn in average 2Q production to 42,950 boepd, a 25% increase vis-à-vis the 34,300 boepd achieved in 2Q 2013. In the Kurdistan Region of Iraq (KRI), the company’s share of production in the second quarter was also higher by 7% to 28,800 boepd vis-à-vis 27,000 boepd in 2Q 2013.
Press Release, August 6, 2014; Image: Dana Gas