Dubai: Dana Gas on Monday announced that its gross profit for 2009 increased 69 per cent to Dh438 million with revenue from the sale of hydrocarbons increasing 12 per cent to Dh1.28 billion compared to 2008.
A company statement said the results reflect the company's ongoing and growing operations in Egypt, plus a full year of condensate production sales from the Khor Mor field in Kurdistan.
"Full-year net profit after tax of Dh88 million was lower than the Dh120 million generated in 2008, largely due to the write-off of exploration costs, together with specific impairments [Tunisia and Nigerian asset value revisions, plus a reduction in inventory and land values]," the statement said.
"The sale of 10 per cent of the company's interests in Kurdistan, together with a sale of a 50 per cent interest in the Komombo concession in Egypt generated significant profits."
However, earnings before interest, tax, depreciation, amortisation and exploration (Ebitdax) increased 150 per cent to Dh1.44 billion compared to 2008.
Dana Gas Chief Executive Ahmad Al Arbeed said: "Dana Gas is an operationally strong and successful company. We have a good portfolio of assets and we are pleased with the progress that we have made during 2009.
"Our Egypt exploration programme has been resoundingly successful, yielding eight discoveries in 2009 and a 40 per cent increase in 2P [gross proved and probable] reserves at the end of the year.
"In addition, our end of year actual production run rate exceeded the target run rate of 40,000 boepd [barrels of oil equivalent per day]."
The net profit after tax excludes an unrealised gain of Dh370 million in 2009 on the company's investment in Hungarian oil and gas company MOL, one of Dana Gas' partners in Kurdistan, booked directly to equity in line with the company's published accounting policy.
"The ‘total comprehensive income' for 2009 is therefore Dh458 million, which is significantly higher than Dh120 million achieved in 2008," the statement said.
In 2009, Dana Gas Egypt produced gas, LPG and condensate at an average rate of just over 34,700 boepd, an increase of 20 per cent compared to 2008 thanks to production from three of Dana Gas' recent gas discoveries that were brought on stream during the year. Additionally, in the Kurdistan region of Iraq, gas and condensate was produced throughout the year with the condensate being sold at market rates.
Dana Gas Egypt drilled 12 exploration wells during the year which yielded eight discoveries.
In 2009, Dana Gas sold a 5 per cent interest in Pearl Petroleum Company to OMV and 5 per cent to MOL.
Performance in 2009
- Dh1.44b Dana Gas earnings before Ebitdax
- 34,700 Dana Gas Egypt's average rate of output in boepd
