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Dana Gas Reports Surge in H1 2019 Net Profit

Gasoil News - Published on Tue, 13 Aug 2019

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Middle East's largest regional private sector natural gas company Dana Gas PJSC announced its Financial Results for the first half ended 30 June 2019. The Company's H1 2019 net profit jumped 483% to USD 140 million (AED 513 million) in H1 2019 compared with USD 24 million (AED 88 million) in H1 2018. This was mainly due to the recognition at fair value of certain reserve based earn out entitlements amounting to USD 71 million. These are due from certain shareholders in Pearl Petroleum as considerations linked to the original share sale agreements, which were contingent upon proving up additional reserves in Pearl Petroleum which were confirmed by the recent independent reserves report by Gaffney Cline.

Excluding the reserve based earn outs of USD 71 million, net profit from core operations increased by 187% to USD 69 million (AED 253 million) versus USD 24 million (AED 88 million) in H1 2018. This was principally due to an increase in KRI production post debottlenecking which added USD 20 million (AED 73 million), Sukuk profit savings and reimbursement of arbitration costs, reflecting the Company's solid operational performance.

Revenue for the first six months of the year advanced 3% to USD 242 million (AED 887 million) as increased production in the KRI added USD 27 million (AED 99 million) to the topline which was partially offset by USD 15 million (AED 55 million) in reduced revenue due to price declines and USD 5 million (AED 18 million) due to lower production in Egypt.

The Company's average production in H1 2019 was 68,200 boepd, a 7% increase as compared with 63,600 boepd in H1 2018. Output in the KRI was up significantly to 32,400 boepd in H1 2019 compared to 26,100 boepd in H1 2018, while Egypt output was 4% lower at 34,100 boepd during the same time frame.

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Posted By : Rabi Wangkhem on Tue, 13 Aug 2019
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