The Middle East’s largest private sector natural gas company Dana Gas PJSC reported a net profit increase to AED511 million ($139m) for the first half (H1) of 2021, compared to a loss of AED69m ($19m) in the same period last year, according to an official statement by the company.
Excluding the reversal of impairment related to Egypt assets, Dana Gas posted an adjusted net profit of AED225m ($61m) compared to an adjusted net profit of AED66m ($18m) in H1 2020, a 239 percent increase, reflecting higher oil prices and improved operational performance.
Revenue for H1 2021 was up by 19 percent and stood at AED792m ($216m), compared to AED664m ($181m) in H1 2020, driven by higher realized prices during the period.
As a result of the increase in net profit, the company’s retained earnings turned from accumulated losses of $20m to positive $142m.
“The company has delivered a very strong set of results for the first half of 2021 as a result of our robust financial and operational performance supported by the rebound in oil prices,” stated Dr Patrick Allman-Ward, CEO of Dana Gas.
“Our revenues grew by 19 percent in the first six months which, coupled with our low-cost structure, has helped the Company increase gross profits by 133 percent and generate a net profit of $139m.”
Dana Gas Egypt’s operational cash flow increased in H1 2021 by 175 percent to $80m, reflecting the increase in oil prices and higher collections during the period.
Dr Patrick Allman-Ward, CEO of Dana Gas.
The Company’s average production in H1 2021 was 64,000 boepd, slightly higher than 63,250 in H1 2020, driven by increased production in the Kurdistan Region, Iraq (KRI) which helped to offset a decline in Egypt.
Production in KRI increased by 8 percent to 34,300 boepd, while Egypt’s output declined by 6 percent to 29,150 boepd, as a result of natural field depletion.
Dana Gas’s H1 2021 collections from the KRI and Egypt increased 106 percent year-on-year to AED678m ($184.6m), the highest level in more than five years.
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