Dana Gas profit rises 276%

Dana Gas PJSC, the Middle East's private sector natural gas company, has announced its financial results for the quarter ending in June, with a net profit after tax of Dh124 million, a 276 per cent increase compared to the second quarter of 2010. Revenue from the sale of hydrocarbons increased to Dh627 million during the second quarter, with gross profit reaching Dh341 million. These figures represent increases of 46 per cent and 90 per cent respectively, compared to the same period last year. This is due to strong production growth coupled with higher market prices for oil, condensate and LPG during 2011. Production increased in aggregate by 20 per cent, from the company's operations in Egypt and in the Kurdistan region of Iraq, where production from the Khor Mor field continues to increase. Earnings before interest, tax, depreciation, amortisation and exploration (EBITDAX) increased by 63 per cent to Dh411 million as compared to the second quarter of last year. Article continues below Net profit for the six months ending in June was Dh216 million compared to Dh66 million in the same period last year. The above net profit for the six months excludes an unrealised gain of Dh172 million on the company's investment in MOL (the Hungarian oil and gas company, a partner in the Kurdistan region of Iraq), booked directly to equity in line with the company's published accounting policy. EBITDAX for the six month period increased to Dh814 million compared to Dh480 million in the same period last year. Dana Gas chief executive officer Ahmad Al Arbeed said: "This excellent outcome is driven by the 20 per cent increase in production from Egypt and the Kurdistan region of Iraq and consequent increase in revenues accompanied by our tight control of costs throughout the organisation. While Dana Gas continues to deliver consistent strong operational and financial results, we are working diligently to meet the challenges that we face during the political changes in our region and at the same time we seek to take advantage of opportunities as they arise."