Dubai: Dana Gas reported an 82 per cent surge in profit in the first half of the year, as higher oil and gas prices helped offset a drop in production. The UAE-based natural gas producer reported a net profit of Dh407 million, compared to an adjusted net profit of Dh225 million in the first-half of 2021.
The company said the higher profit was driven by elevated hydrocarbon prices, lower costs and strong performance from its operations in Kurdistan Region of Iraq (KRI). Brent crude has risen 23 per cent this year, largely due to sanctions imposed on Russia, one of the world’s largest oil producers. Dana Gas’ realized prices during the first-half of the year averaged $87 per barrel (bbl) for condensate and $44 per barrel of oil-equivalent (boe) for LPG compared to $48/bbl and $32/boe respectively in 2021 same period.
According to Patrick Allman-Ward, CEO of Dana Gas: “Despite an increased uncertainty around the global economy amid high inflation, the outlook for the remainder of 2022 is still encouraging with both energy prices and demand remaining high.”
The company’s overall production in H1-2022 was 61,100 barrels of oil-equivalent per day (boepd), a 5 per cent reduction from 64,000 boepd in H1-2021. Dana attributed this to a 9 per cent output drop in Egypt mainly as a result of natural field decline. Meanwhile, output in Kurdistan Region of Iraq increased by 1 per cent, with production averaging 34,500 boepd in H1-2022 versus 34,300 boepd in H1-2021.
“Drilling of the project’s first development well was completed, and drilling operations for the second well are currently in progress,” said a statement. Dana Gas said it expects to maintain its semi-annual dividend payment in keeping with the company’s policy.