Dana Gas Swings to Profit in 2019
Middle East and North Africa-focused Dana Gas’ net profit in 2019 stood at $157mn as against a loss of $186mn in the year before thanks to increased production in Kurdistan Region of Iraq (KRI), it said February 12.
“The increase in profitability in 2019 was supported by a significant increase in production from the KRI, which added $40mn which helped offset partly the impact of lower prices. In addition, during the year, the company recognised earn out and deferred income entitlements which contributed positively to the bottom line,” Dana said.
Revenue during the year was $459mn compared with $470mn in 2018 due to lower realised prices and lower production in Egypt partly offset by increase in production in KRI. Production rose 5% during 2019, averaging 66,200 boe/d versus 63,050 boe/d in 2018. Production was boosted by an 18% jump in output from the KRI, which reached 31,500 boe/d. This offset drops in production from Egypt, which fell 4% to 33,000 boe/d versus 34,500 boe/d in 2018, and the UAE, which averaged 1,000 boe/d in 2019.
Dana said its expansion plan in the KRI is on schedule, with delivery from the first gas train expected in 2022. This will raise production to 650mn ft3/d from the current rate of circa 400mn ft3/d, the company said. “Over 90% of Dana Gas's proven reserves are located in the KRI, so we will continue our focus here as we look to delivering on this vast potential," CEO Patrick Allman-Ward said.