UAE based Dana Gas has reported gross revenue and net profit of $450mn and $83mn as compared to $392mn and net loss of $88mn, respectively, in 2016.
The increase in revenue and profitability was due to higher production in Egypt and the Kurdistan Region of Iraq (KRI) and an increase in realised liquid prices. Net profit was also supplemented by a successful settlement agreement with the Kurdistan Regional Government (KRG). However, in Q42017, net profit was partly impacted by an impairment charge of $34mn against the UAE Zora asset following the year-end reserve report.
Total average 2017 production was higher by 1% at 67,600 barrels of oil equivalent per day (boepd), from 67,050 boepd in 2016. The average realised liquid price was $40 per barrel of oil equivalent (boe), compared to $33 boe in 2016, representing a 21% increase in 2017.
The company's year-end cash balance stood at $608mn, double the $302mn it reported at end of 2016. The cash balance was boosted by a $210mn dividend received from the Pearl Petroleum Company (Pearl) as part of the KRG settlement, a $110mn industry payment in Egypt and $22mn of condensate exports in Egypt, partly offset by capital expenditure, general and administrative expenses, loan repayments and finance costs. The cash balance does not include $140mn, which is held by Pearl for investment in further developing the assets in the KRI.
The KRG settlement saw Pearl, of which Dana Gas is a 35% shareholder, settle a total of $2.2bn debt due from the KRG; including $1bn received in cash upon settlement, of which $400mn has been allocated for future investment to increase gas production at Khor Mor by 500mn standard cubic feet per day.