UAE’s Dana Gas posts gains in Q1 profit
Emirati energy company Dana Gas said May 9 its 41% improvement in Q1 2021 net profit over last year was the result of production increases from the Kurdish region of Iraq.
Net profit for the three-month period ending March 31 was $24mn, up from the $17mn reported in Q1 2020. Lower borrowing costs and the increase in gas production from the semi-autonomous Kurdish north led to the increase.
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Revenue in Q1 was $106mn, 2% higher than during the same period last year. The company also attributed that to improved performance in Kurdistan, along with higher prices for global commodities.
The company reported a net loss of $376mn last year versus a net profit of $157mn in 2019.
For production, Dana reported a Q1 average of 64,000 barrels of oil equivalent/day, a y/y increase of 2%. Kurdish gains offset a slight decline in production from Dana’s assets in Egypt.
During the quarter, Pearl Petroleum, a consortium between Dana and its Emirati counterpart Crescent Petroleum, started an expansion project at the Khor Mor gas field in northern Iraq, picking up the pace after a work stoppage during the pandemic last year.
The expansion would lift production from 440mn ft3/day to 690mn ft3/day by 2023.
Last month, Dana terminated a $236mn deal with US independent IPR Energy to sell its Egyptian assets after conditions for the transaction could not be met. The deal was first announced in October.
“We remain fully committed to managing our producing assets in Egypt for the benefit of all our stakeholders and focusing on evaluating the exciting potential of our offshore Block 6 Concession Area as quickly as possible,” CEO Patrick Allman-Ward said.