Dana Gas PJSC, the Middle East's largest regional private sector natural gas company, has announced its financial results for the quarter ended September 30, 2011.
Revenue from the sale of hydrocarbons increased to AED 645 million, with gross profit of AED 315 million. These figures represent increases of 58% and 76% respectively, compared to the same period last year. This is due to an aggregate 20% growth in production across the Group coupled with increased oil prices. Production in the Kurdistan Region of Iraq increased compared to 3Q 2010 as a result of both trains of the gas plant at the Khor Mor Field being in operation to cater for increased demand for gas from the power stations at Erbil and Suleymania.
The Company made a Net Profit after tax of AED 143 million in the third quarter, which compares to AED 33 million in 3Q 2010. This increase in profitability reflects increased production volumes and the fact that an increased proportion of the Group's sales are from petroleum liquids whose prices have risen significantly since the same period in 2010.
Earnings before interest, tax, depreciation, amortization and exploration (EBITDAX) for 3Q 2011 were AED 366 million, a 41% increase compared 3Q 2010. The revenue collections attributable to the Group during the quarter were AED 220 million. The Company's cash balance at September 30, 2011 was AED 418 million, while the trade receivables balance was AED 1,485 million.
In the Kurdistan Region of Iraq, construction and commissioning of the LPG plant and supporting facilities are now complete, and gas is being delivered to the Erbil and Sulaymania power stations at peak rates in excess of 300 million standard cubic feet per day with average production of 296 million standard cubic feet per day of gas, 13,900 barrels per day of condensate, and 240 tons per day of LPG. This equates to 26,400 barrels of oil equivalent per day net to Dana Gas, which owns a 40% interest in the license.
In Egypt, production during 3Q 2011 averaged 40,400 barrels of oil equivalent per day from the Company's twelve producing fields in the Nile Delta and in Upper Egypt. Production operations in Egypt have continued uninterrupted, notwithstanding the challenging transitional period the country has gone through during the year. Development activities have been prudently scheduled to be self financed from the stream of receivables from the Egyptian assets, with the result that production has not risen as forecast at the beginning of the year. The Company will be continuing its exploration program in the last quarter of 2011 and during 2012 in pursuit of continued reserves growth.
Dana Gas is collaborating with a number of international banks for collective advice on financial strategy, capital structure, refinancing the Company's $1 billion Sukuk, and for developing further the Group's plans to list its upstream business on the London Stock Exchange. The Company also has appointed international law firms as legal advisors as well as other international expert consultants to advise and represent the Company on various matters related to the planned listing process.
Commenting on the quarterly performance, Dana Gas Chief Executive Officer, Mr. Ahmed Al Arbeed, said, "Dana Gas continues to deliver strong performance and increases in profits driven by our successful operations, in spite of a globally challenging environment. We have and will continue to respond to challenges successfully and with confidence, ensuring that we maintain our operations uninterrupted while we manage our expenditures prudently. As a regional company committed to the long term benefit of our region and its stakeholders, we are committed to operating our assets with a view to creating sustainable value for our shareholders."
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