Sharjah-based Dana Gas, a leading natural gas company, has posted a gross profit of $140 million for 2018, compared with $118 million in the previous year, reflecting an increase of 19 per cent.
Revenue was 4 per cent higher at $470 million compared with last year’s $450 million due to higher realised prices and incremental production in the KRI inQ4 2018.
The company’s 2018 net profit, before Impairments, was $64 million as compared on a like-for-like basis with $5 million in 2017. The Impairments follow the annual year end oil and gas reserves valuation of its Zora field in the UAE and its fields in Egypt, and which required the Company to take an exceptional one-off non-cash impairment of $187 million for Zora and $59 million in Egypt. Including the Impairments, the net loss for 2018 is $186million as compared to a net profit of $83 million in 2017.Following these results, the Company’s book value per share stands at Dh1.36 ($0.37) as of year end 2018.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented: “2018 was a year of strong operational performance for Dana Gas. We delivered, a 30 per cent increase in gas production from the KRI debottlenecking project which will increase revenues by$50 million on an annualised basis, we made large saving from restructuring the Sukuk, we achieved higher collections and the Company paid its first dividend.”
“Both our Revenue and Gross Profit were higher than last year and Net Profit also increased excluding a one off non cash impairment. With a robust cash balance and stronger balance sheet, we plan to pay an increased dividend of 5.5 fils in 2019.
“We are proceeding with our exciting further expansion plans in the KRI and are looking to more than double our production and cash flows in the next three years,” he added.
Group production during 2018 averaged 63,050boepd versus 67,600 boepd in 2017.In Egypt, production averaged 34,500 boepd versus 39,500 boepd in 2017, as a result of natural well declines however some of these declines were offset by the Balsam-8 well. In the KRI, average output increased slightly to 26,650 boepd from 25,750 boepd last year
Following completion of the debottlenecking project in the KRI, production increased by 30 per cent and the aspirational target of 70,000 boepd was achieved in November. The Zora Field is being written-down following the yearend reserve report and production is expected to cease during 2019.
Key drivers of growth will be Egypt, where Block 6’s high-impact multi-Tcf Merak well is to be drilled in the second quarter 2019.In the KRI, Pearl Petroleum is also undertaking a multi-well drilling programme at the Khor Mor and Chemchemal Fields, with expansion plans to progress and grow production by a further 500 MMscf/d of gas and 20,000 bbl/d of condensate over the coming three years. – TradeArabia News Service
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