Dubai: Dana Gas reported on Wednesday a $38 million (Dh139 million) net profit for the third quarter, a 36 per cent rise, as it cut costs and increased production.
An average of 40,500 barrels of oil equivalent per day was produced in the third quarter, marginally higher than the 39,350 a day in same period last year.
The Sharjah-headquarted energy firm mitigated the impact of fluctuating global energy prices with a third-quarter saving of $6 million by cutting administrative and sales costs, said Patrick Allman-Ward, Dana Gas chief executive, in a conference call with reporters.
For the three months ending September 30, revenues increased 2 per cent to $174 million compared to $170 million in the same period a year earlier.
The company received $71 million in cash from operation and cash collections in the third quarter, of which, $53 million was from Egypt.
As of September 30, Dana Gas’ outstanding receivables were $276 million in Egypt and $712 million in the Kurdistan Region of Iraq.
Dana Gas continues to face problems in recovering payments from the Kurdistan Regional government of Iraq for its exploration and production assets.
Overdue
“We continue to invoice the government … we continue to see that our overdue receivables position continue to grow,” Allman-Ward said.
In September, Dana Gas signed the Gas Production Enhance Agreement with the Egyptian government, which Allman-Ward said he expects will reduce debt owed by Egypt to Dana Gas to a “nominal amount” by 2018.
For the first nine months of the year, Dana Gas earned $129 million in net profits, a 6.61 per cent increase on the $121 million reported for the same period last year.
Revenues were $541 million, a 16.09 jump on the $466 million reported for the corresponding nine month period last year.
Dana Gas shares closed Wednesday unchanged on the Abu Dhabi Securities Exchange at Dh0.63.
