Abu Dhabi: Dana Gas, one the Middle East’s largest regional private sector natural gas companies, reported net profit of Dh571 million for 2013, marking a drop from the Dh605 million of 2012. Meanwhile, its total revenue hit Dh2.39 billion, marking an increase from 2012’s Dh2.32 billion.

In a statement issued by the company on Thursday, the drop in net profit was attributed to the lower sales of LPG in the Kurdistan region of Iraq, along with an increase in royalty payments, and higher depreciation, depletion, and amortisation expenses in Egypt.

The growth in revenues was driven principally by an eight per cent increase in gross production, reaching 64,700 barrels of oil equivalent per day. The increase was led by Egypt, which increased production by 14 per cent, and contributed Dh1.5 billion to gross revenue. In 2012, Egypt contributed Dh1.4 billion to revenue.

Cash balance improved by 24 per cent to Dh748 million by the end of 2013 aided by a Dh194 million payment of outstanding receivables from Egypt in December 2013.

“From an operational standpoint, 2013 was a very successful year. We increased production levels in Egypt, and won working interest in a major new concession area, which has high prospectivity,” said Dr Patrick Allman-Ward, CEO of Dana Gas.

He added, “In Kurdistan, the resumption of our LPG loading facilities is adding incremental revenue and will enhance profits going forward. We have also achieved progress in the development of the Zora gas field in the UAE, which provides real growth opportunities.”

In 2013, Dana Gas Egypt announced achieving record gas production levels equivalent to 41,500 barrels per day (bpd), which included associated liquids.

In the Kurdistan Region of Iraq, the company’s full year share of production in the KhorMor field remained constant at 27,600 bpd.

The announcement of financial results came during the company’s annual general meeting where shareholders were briefed that from January 1, 2014 to March 15, 2014, the company received conversion notices amounting to $51 million for the company’s convertible sukuk. Accordingly, around 250 million ordinary shares calculated at a price of Dh0.75 will be issued.