UAE's Dana Gas Extends Earnings Slump; 2Q Profit Plunges 85%

Reuters

DUBAI, Aug 13 (Reuters) – Dana Gas said a sustained slump in oil prices and lower production was to blame as the United Arab Emirates energy company reported a sharp fall in earnings for a third straight quarter on Thursday.

The company made a net profit of 25 million dirhams ($6.8 million) for the three months to June 30, down 85 percent from a year earlier, according to a statement to Abu Dhabi's bourse.

That was worse than a 73 percent year-on-year decline in first-quarter profit, although it stayed in the black in the second quarter. The company had swung into the red in the final quarter of 2014, Reuters data shows.

Dana's second-quarter revenue was 425 million dirhams, down from 685 million dirhams a year earlier. The company attributed the drop to a sharp decline in hydrocarbon prices compared to the previous 12 months.

Oil prices have fallen by more than half from a June 2014 peak.

Dana said in the statement it would increase production in Egypt and the UAE in the second half of 2015, predicting this would help increase its revenues.

Dana's Egyptian unit delivered 35,010 barrels of oil equivalent per day (boepd) in the second quarter, down 18 percent year-on-year due to aging oilfields and delays in drilling. However, its share of production in the Kurdistan region of Iraq rose 4 percent to 30,000 boepd over the same period.

(Reporting by Matt Smith; Editing by Susan Fenton)

Copyright 2017 Thomson Reuters. Click for Restrictions.

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