UAE's Dana Gas profits jump 125% despite production decline - Energy

The UAE company, Dana Gas, announced a decrease in production in the first quarter of 2022, due to the natural decline of its Egyptian assets.

A company statement today, Wednesday, May 11, 2022, on the results of its business in the first quarter of this year, stated that total production decreased to 62,400 barrels per day of oil equivalent in the first quarter, compared to 64,900 barrels per day during the same period from last year.

The company’s production from the Kurdistan region of Iraq remained largely unchanged at 35,300 barrels per day, compared to 35,400 barrels per day last year.

The assets of the Egyptian company Dana Gas recorded a decrease of 7%; Due to the depletion of natural fields, with production dropping to 27 thousand barrels per day.

The company indicated that plans to expand production in the Khor Mor field in Iraqi Kurdistan are “going well”, expecting the first gas in the second quarter of 2023.

Dana Gas profits

Dana Gas, the largest private company operating in the natural gas sector in the Middle East, recorded a 125% increase in net profits for the first quarter of 2022, and profits for the three months ended March 31, reaching 198 million dirhams (54 million dirhams). dollars), or 2.8 fils per share, compared to 88 million dirhams ($24 million) or 1.26 fils per share in the first quarter of 2021; Reflecting the strong performance of the company’s business.

The company said revenue rose 32% to $140 million, largely due to higher hydrocarbon prices and cost-cutting efforts.

The company’s earnings before interest, taxes, depreciation and depreciation increased by 62% in the first quarter of 2022, to reach AED 297 million ($81 million).

Selling oil and gas prices

Average prices achieved by Dana Gas in the first quarter were $82 per barrel for condensate and $43 per barrel for LPG, compared to $44 per barrel and $33 per barrel during the same period last year, respectively.

CEO
Dana Gas CEO Patrick Allman-Ward

For his part, CEO of Dana Gas, Patrick Allman-Ward, said: “Continuing the positive momentum achieved by the company in 2021, Dana Gas recorded one of its best quarterly results, benefiting from high energy prices, and continuing to record excellent operational performance in the Kurdistan Region of Iraq. In addition to the low cost of its operations.

He pointed out that these positive factors prompted the Board of Directors to recommend the payment of a dividend of 4.5 fils to shareholders.

He added: “We look forward during the next phase to complete the implementation of the project to expand and develop the gas processing facility in Khor Mor (Khormore 250) at a cost of $600 million. The next phase of the project is expected to increase the company’s total production capacity by 25% by the second quarter of 2023, which will contribute to Improving our revenues and profits and enhancing our future dividends.”

cash flow

Total cash payments received by the group amounted to 253 million dirhams ($69 million) during the first quarter of 2022, compared to 213 million dirhams ($58 million) in the first quarter of 2021.

The contributions of Egypt and the Kurdistan Region of Iraq amounted to 62 million dirhams ($17 million) and 191 million dirhams ($52 million), respectively.

The amounts owed to the company in the Kurdistan region of Iraq amounted to 216 million dirhams ($59 million), compared to 176 million dirhams ($48 million) in the first quarter of 2021.

The amounts owed (unpaid) to the company in Egypt have improved significantly; The amounts decreased at the end of the first quarter of 2022, reaching 114 million dirhams ($31 million), compared to 480 million dirhams ($131 million) at the end of the first quarter 2021.

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