Dana Gas, the UAE-based natural gas producer, has reported a robust financial performance in the first quarter of 2017, due to increased production, principally in Egypt and higher realised oil and gas prices.
The Sharjah-based, privately-owned company gross revenues of $118mn, up by 44% from $82mn in Q1 2016 and a net profit of $11mn, a leap of 83% from the $6mn in the same quarter last year.
Overall group production was 69,900 barrels of oil equivalent per day (boepd), 16% higher compared to Q1 2016, while average realised prices in Q1 2017 were $42 per boe, versus $30 per boe in Q1 2016.
“Our solid financial results are testament to our ongoing efforts at maximising production while reducing costs. Group production was up for the second consecutive quarter, despite significantly reduced operating and capital expenditure,” Dr Patrick Allman-Ward, Dana Gas’ CEO, was quoted as saying in a press release sent to arabianoilandgas.com. “Further capital investment will be balanced with our collections.”
Dana Gas generated $27mn in free cash flow in the first quarter, driven by a reduction in OPEX and CAPEX and continued discipline onGeneral & Administrative (G&A)expenditure. OPEX was down 23% due to further cost reductions in Egypt and CAPEX was down by 78%, as the company focussed on completing only those projects that were already in progress and those related to maintaining plant asset integrity and safe operations.
The Company will continue adopting a prudent approach to spending as part of its effort to preserve cash resources, the press release mentioned.
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