Dubai: Dana Gas posted a loss of Dh69 million in the first six months of 2020, as it took a hit from one-time charges of Dh135 million related to some of its oil and gas assets. This was primarily stemming from a decline in oil prices.
The company posted a profit of Dh513 million in the same period last year. Oil prices are down more than 30 per cent this year after the pandemic erased global fuel demand.
In a statement, Dana Gas said it would continue to focus on “maximizing the value of its existing hydrocarbon assets and projects, while pursuing growth through a strategy of organic exploration opportunities in our heartland areas.”
Dana Gas, which was set up in 2005, is the largest private sector natural gas company in the Middle East and has assets in the Kurdistan Region of Iraq (KRI) and Egypt. The company, listed on Abu Dhabi Securities Exchange, has proven and probable reserves exceeding 1 billion barrels of oil equivalent.
Dana produced 63,250 barrels of oil equivalent per day (boepd) in the first-half of 2020, down 7 per cent from last year. Its group production averaged over 66,200 boepd in 2019.
On a quarterly basis, the company posted a loss of Dh131 million, compared to a profit of Dh385 million a year earlier. Cash and bank balances stood at Dh1.34 billion, down 14 per cent from year-end balance of Dh1.56 billion.