File photo: A Dana Gas plant in Kurdistan. Image Credit: Courtesy: Dana Gas

Sharjah: Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, on Wednesday announced its financial results for the first half ended June 30, 2019, reporting a net profit increase of 483 per cent to Dh513 million.

The company put the good results down to the recognition at fair value of certain reserve based earn out entitlements amounting to $71 million (Dh260.7 million). Excluding the reserve based earn out of $71 million, net profit from core operations increased by 187 per cent to Dh253 million.

Revenue for the first six months of the year advanced three per cent to Dh887 million as increased production in the KRI added Dh99 million to the top-line, which was partially offset by Dh55 million in reduced revenue due to price declines and Dh18 million due to lower production in Egypt.

Dr Patrick Allman-Ward, chief executive officer of Dana Gas, commenting on the latest financial results said: “Dana Gas’s net profit of $140 million in the first half 2019 is a clear reflection of the company’s strong operational and financial performance with strongly rising production and revenues from the KRI.

“An independent certification exercise has shown a 10 per cent increase in the 2 Company’s 2P reserves in the KRI to over 1 billion boe. This external reserve auditor’s report confirms our view that the Khor Mor and Chemchemal Fields are world class and are probably Iraq’s biggest gasfields,” he added.

The company’s average production in H1 2019 was 68,200 boepd, a 7 per cent increase as compared with 63,600 boepd in H1 2018. Output in the KRI was up significantly to 32,400 boepd in H1 2019 compared to 26,100 boepd in H1 2018, while Egypt output was four per cent lower at 34,100 boepd during the same time frame.

The company’s cash position is Dh1.5 billion as of June 30, 2019, little changed from the number in 2018, and includes a dividend payment of Dh384 million made in May and ongoing Sukuk profit payments.