(MENAFN- Khaleej Times) Dana Gas on Sunday declared a net profit of Dh341 million and revenues more than Dh1 billion for the first six months of 2013.
The Sharjah-based company's average overall production volumes were up five per cent to 61,700 barrels of oil equivalent per day (boepd) in the second quarter and up one per cent to 61,500 boepd in the first half of 2013.
Commenting on the results, Dr Adel AlSabeeh, chairman of Dana Gas, said: "One of our principal strategies in the first half of 2013 was to concentrate on extracting higher production volumes with limited capital investment. Our group production numbers have increased five per cent in the quarter and now average 61,700 barrels of oil equivalent per day (boepd). We also achieved a record average production number in Egypt of 39,000 boepd in July. These are excellent production figures and demonstrate the high quality of assets we have in our portfolio."
In Egypt, Dana Gas recently achieved a record production of 39,000 boepd, a 13 per cent increase on the 2012 average production. Furthermore, LPG sales have recommenced in Kurdistan on the 17 July, energy prices having rebounded in July and monetary support is being provided for in Egypt.
"As LPG sales resume, energy prices rebound, production volumes continue to remain high, and the Egyptian economic situation stabilises as government authorities continue to work with the international financial community to address investors' concerns, collectively these will support our main growth strategies going forward," the chairman said.
First half revenue and gross profit was Dh1.08 billion and Dh506 million. Earnings before interest, tax, depreciation, amortisation and exploration (EBITDAX) was Dh616 million compared to Dh822 million in the same period last year. In the second quarter of 2013 revenues and gross profit was Dh528 million and Dh232 million.
Rashid Al Jarwan Acting chief executive officer of Dana Gas, said: "Good progress is being made on our drilling programme in Egypt. We discovered hydrocarbons in a new well, Begonia 1, and successfully brought production online from two previously discovered wells, Allium and West Sama. In Kurdistan, we have completed the reconstruction of the loading bay which will enable resumption of LPG and enhance revenue. Furthermore, the appointment of Dr Patrick Allman-Ward as new CEO will bring experience, knowledge and hands-on experience in Egypt, which will benefit Dana Gas immensely as it focuses on its next stage of growth."
Dana Gas Egypt saw an 11 per cent year on year increase in production volumes, averaging 34,300 boepd in Q2 2013 and also achieved a record production in July of 39,000 boepd, up 13 per cent from 2012.
In the Kurdistan Region of Iraq, the Company's 40 per cent share of production in the Kor Mor Field for the second quarter averaged 27,000 boepd (Q2 2012: 27,900 boepd). The decline in production was mainly due to the suspension of LPG production following an accident last year by a third party tanker. The reconstruction and upgrading of the loading facilities at a cost of $15 million was carried out and was completed in July 2013.
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