Dana Gas Reports 70% Jump in Second Quarter Profit

Middle East and North Africa focused natural gas player Dana Gas on Wednesday announced a 70% jump in net profit in second quarter to $46 million.

During the quarter the company recorded gross revenues of $187 m and gross profit of $85 m; 30% and 35% higher than the corresponsding period of 2013, respectively

For the first half of 2014, profit from operations increased by 68% to $91 million as compared with $54 million in the corresponding period in 2013. Gross revenues and gross profit in the first half were $367 million and $172 million, 24% and 25% better than the numbers recorded in the same period in 2013.

“A combined increase in production in Egypt and resumption of LPG production in the Kurdistan Region of Iraq (KRI), along with higher energy prices and a reduction in cost of sales were the major contributors towards this rise in revenue and gross profit,” the company said.

Average overall production volumes increased by 17% in second quarter 2014 to 72,200 barrels of oil equivalent per day (boepd) as compared with 61,700 boepd in the same period last year.

Dana Gas Egypt experienced a continued upturn in average second quarter production to 42,950 boepd, a 25% increase vis-à-vis the 34,300 boepd achieved in the same period in 2013. In the Kurdistan Region of Iraq (KRI), the company’s share of production in the second quarter was also higher by 7% to 28,800 boepd vis-à-vis 27,000 boepd in the second quarter of 2013.