Dana Gas PJSC the Middle East’s largest regional private sector natural gas company, has announced its preliminary financial results for the year ended 31st December 2011.

Financials

Dana Gas reported gross revenue of AED 2.5 billion (2010: AED 1.8 billion), from the sale of hydrocarbons, and gross profit for the year of AED 1.3 billion (2010: AED 781 million), representing increases of 42% and 71% respectively.

Net profit was AED 506 million (2010: AED 158 million), a 220% rise, reflecting growing production, higher realised oil prices, and optimized cost management in 2011.

Earnings before interest, tax, depreciation, amortisation and exploration (EBITDAX) were AED 1.6 billion (2010: AED 1 billion), a year-on-year increase of 54%.

The above Income Statement excludes an unrealised loss of AED 326 million on Dana Gas’s 3% shareholding in MOL, the Hungarian-listed Oil and Gas Company and a key partner in Dana Gas’s Kurdistan operations. MOL’s share price declined by 16% and the HUF/US$ exchange rate declined by 12% in 2011. This loss is booked directly to equity in line with the Company’s published accounting policy, resulting in Total Comprehensive Income for 2011 of AED 180 million.

Net cash generated from operations was AED 357 million. In 2011 the Group collected AED 649 million from its share of receivables in Egypt and Kurdistan Region of Iraq.

Commenting on the results, Hamid Jafar, Chairman of Dana Gas, said:

“For Dana Gas, 2011 was a year of successful operational growth against a backdrop of unprecedented regional political turmoil. The consequences of the so-called ‘Arab Spring’ are presenting the oil and gas industry with considerable challenges in the short term, and Dana Gas is not immune to these. However, we enjoy amicable and cooperative relationships with our host governments in the UAE, Egypt and the Kurdistan Region of Iraq. We are confident of developing and maintaining our host governments’ essential gas supplies, and as applicable agreeing plans for payment of outstanding sums due to us.”

Ahmed Al-Arbeed, Chief Executive Officer of Dana Gas, added:

“We are proud of the Company’s strong operational performance in 2011, particularly given the challenging environment. We have successfully continued to grow our reserves and production, and are now very focussed on receivables collections while preserving our assets for benefit of all stakeholders.”

Production and Development

The Group’s Net Production averaged 66,200 barrels of oil equivalent per day (boepd) from its interests in Egypt and the Kurdistan Region of Iraq for 2011. This represents a year-on-year increase of 19%.

During 2011, Dana Gas Egypt produced gas, LPG, condensate and crude oil at an average rate of just over 42,500 boepd. This is similar to 2010 production, despite natural decline of production from existing fields and a slower pace of drilling of new production wells in order to calibrate capital expenditure with collections.

In the Kurdistan Region of Iraq, the Company continued to increase its production, achieving an average rate of 23,700 boepd (2010:13,200 boepd). The first LPG plant train was commissioned in January 2011, and the second LPG train in April 2011.

Tags: Dana Gas