Dana Gas Reports 79% Rise In H1 Net Profit

Sharjah-based Dana Gas announced a 79 per cent increase in net profit during the first half of the year to Dhs387 million, up from Dhs216 million in H1 2011.

Revenue from the sale of hydrocarbons increased one per cent to Dhs1.2 billion, while gross profit hit Dhs767 million, a 13 per cent year-on-year rise.

“This is due to production growth in Kurdistan Region of Iraq (KRI) coupled with higher market prices for oil, condensate and LPG during the first six months of 2012,” Dana Gas said in a statement.

The net profit amount excludes an unrealised loss of Dhs19 million on Dana Gas’ three per cent shareholding in Hungarian-listed oil and gas company, MOL, the statement added.

Dana Gas, which has operations in the UAE, Egypt and Kurdistan, said that cash flow has been affected because of political problems in Egypt and Iraq.

“Our revenue collections were in line with expectation and we continue to have constructive discussions with both the government of Egypt and the government of the Kurdistan Region of Iraq on payment of the company’s receivables,” said Adel AlSabeeh, chairman of Dana Gas.

“Overall this has been a reasonable six months financially.”

Dana Gas, which has a $1 billion Sukuk due to mature in October this year, said that it is “committed to finding a consensual solution that is equitable to all stakeholders.”

The company has appointed Deutsche Bank, Blackstone Group and Latham & Watkins as advisors on the matter.

“The company will provide further updates as further progress is made,” the statement added.