Dana Gas Q1 profit slips to Dh22 million

5/5/2016 11:49:07 PM

(MENAFN- Khaleej Times) Natural gas company Dana Gas on Wednesday declared a net profit of Dh22 million for the first quarter of 2016 compared with Dh44 million in the first quarter of 2015.

Despite a very challenging oil price environment Dana Gas has continued to remain profitable. The company reported first quarter gross revenues of Dh301 million and group profit was Dh80 million. Realised price for condensates was down 41 per cent to $30 per barrel and for LPG down by 29 per cent per barrels of oil equivalent to $29 per barrel.

As at March 31 2016 the company's cash and bank balance stood at Dh1.5 billion. The company continues to monitor its capital requirements on an ongoing basis to ensure optimal structure. Optimisation measures includes the company seeking from time to time to buy back its outstanding Sukuk though at the current time the company has not yet determined the ultimate size of the buyback.

Dr Patrick Allman-Ward chief executive officer of Dana Gas said: "The beginning of the year has been encouraging with a good collections rate in both Egypt and Kurdistan despite the low oil price during the quarter which should further improve revenues now that oil prices are already higher. In Iraq's Kurdistan region we have resumed full local sales and entered into a new agreement with the Ministry of Natural Resources to receive regular monthly payments. Furthermore both the Khor Mor and Chemchemal Fields have had their reserves certified and we are pleased to report proven and probable resources are close to 1 billion barrels of oil equivalent as Dana Gas' share making these fields truly world class assets."

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