UAE-based Dana Gas, the Middle East’s largest regional private sector natural gas company, on Thursday announced a 483 percent jump in net profit for the first six months of 2019.
The energy company’s H1 net profit rose to $140 million compared to $24 million in the year-earlier period, mainly due to the recognition at fair value of certain reserve-based earn out entitlements amounting to $71 million.
These were due from certain shareholders in Pearl Petroleum as considerations linked to the original share sale agreements, which were contingent upon proving additional reserves which were confirmed by a recent independent report by Gaffney Cline.
Excluding the $71 million, net profit from core operations increased by 187 percent to $69 million, the company said in a statement.
Revenue for the first six months of the year advanced 3 percent to $242 million, it added.
Dr Patrick Allman-Ward, CEO of Dana Gas, said: “Dana Gas’s net profit of $140 million in the first half 2019 is a clear reflection of the company’s strong operational and financial performance with strongly rising production and revenues from the Kurdistan Region of Iraq (KRI).”
The company’s average production in H1 was 68,200 barrels per day, a 7 percent increase as output in the KRI was up significantly.
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