(Photo courtesy of Dana Gas)
Dana Gas, one of the largest regional private sector natural gas companies, announced on Sunday that the group’s production throughout 2013 increased by 8%, mainly driven by the 14% jump in Egyptian output. The production growth resulted in a marginal increase in the gross revenues to AED 2.39, around $652m.
The company’s revenues in the fourth quarter (Q4) witnessed a sharp surge to AED 682m, compared to AED 554m during the same period last year. In 2012, gross revenues reached AED 2.32bn, some $633m.
The company stated, however, that although net profits in Q4 rose by 12% to AED 128m compared to AED 114m in Q4 2012, net profit for the whole year was down by 5%.
The company attributed the deterioration in net profit to the “increase in royalty payments to the Egyptian government, a higher depreciation, depletion and amortisation expense in Egypt as well as lower sales of high-margin LPG in the Kurdistan Region of Iraq (KRI)”.
Dana Gas pointed out that during 2013 production in Egypt registered 13.4m barrels of oil equivalent (mmboe), compared to 11.8 mmboe in 2012.
So far, DANA Gas Egypt has collected around AED 491m, equivalent to $134m, in 2013. As of 31 December 2013, the company had a trade receivables balance of AED 1bn, around $274m.
The company’s balance sheet was strengthened by an improved cash balance, which increased by 24% while total assets also jumped to reach AED12.9m.
Adel Al-Sabeeh, the chairman of the company’s board, said that “2013 was a year of significant achievements and steady progress for Dana Gas, despite the ongoing challenges in the region. Natural gas is now the fastest growing energy source worldwide, and with half of the global reserves in our region, Dana Gas will … continue to play a growing role in this vital sector as we look to the future.”
Al-Sabeeh said the company has seen positive results and strengthened its management team.
“Dana Gas achieved a good performance last year, despite the challenges, and the share price performance is a reflection of the confidence shown in the company and its future by both regional and international investors,” said CEO Patick Allman-Ward.
“In Egypt, we significantly increased production, and the payment of outstanding receivables by the government has continued,” Allman-Ward added.
The gas company has bid and won a 100% working interest in the offshore area of North El Arish in the eastern part of the Mediterranean Sea.
