Abu Dhabi: Dana Gas, listed on Abu Dhabi bourse reported a net profit of $83 million (Dh304 million) in 2017 compared to a loss of $88 million (Dh323 million) in 2016.
Revenues of the company went up to $450 million in 2017, from $392 million a year earlier due to higher oil prices, increase in production in Egypt and tight management of operational expenses, the company said on Thursday.
Higher profit was also supported by the successful settlement agreement with the Kurdistan Regional Government. However, fourth quarter net profit was impacted by an impairment charge of $34 million against the UAE Zora asset following the year-end reserve report.
The group’s average production in 2017 increased to 67,600 barrels of oil equivalent (boepd) per day, up 1 per cent from 67,050 boepd in 2016. Egypt annual production was 5 per cent higher, at 39,500 boepd. The production in Kurdistan region of Iraq was flat at 25,750 boepd and the UAE’s Zora Gas field produced 1,650 boepd in 2017 as compared to 2,700 boepd in 2016.
“We continued to focus on cost efficiencies and managed to maintain our low levels of G&A, capex and operational expenditures in support of our capital conservation objective, and this focus will carry-on in 2018,” said Dr Patrick Allman-Ward, CEO of Dana Gas.
“Payments from Egypt in H2 2017 were sporadic and disappointing. We remain cautious about the timing and scale of future collections and so the dialogue with the Egyptian Government continues in order for us to get paid what we are contractually owed.”