Sharjah energy firm Dana Gas Q3 profits rise 36%

Dubai: Dana Gas reported on Wednesday a $38 million (D139 million) net profit attributable to share holders for the third quarter, a 36 per cent rise on the $28 million a year earlier.

The Sharjah-based energy firm increased in profit margins amid fluctuating energy prices because of higher production levels and lowering costs, said Patrick Allman-Ward, Dana Gas chief executive, in a conference call with reporters.

Dana Gas produced an average of 40,500 barrels of oil equivalent per day in the third quarter, marginally higher than the 39,350 a day in same period last year.

The company generated a saving of $6 million through combination of a reduction of administrative and sales costs, Allman-Ward said.

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.

Dana Gas continues to face problems in recovering payments from the Egyptian government and Kurdistan Regional government for its exploration and production assets.

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.