Dana Gas Q2 net profit $7 million, revenue $96 million
Staff Writer |
Dana Gas announced its financial results for the first half and second quarter ended June 30, 2016.
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The company reported a net profit of $7 million for the second quarter, similar to the $7 million in Q2 2015. Revenue was $96 million (AED 351 million) as compared to $116 million (AED 425 million) in Q2 2015.
The reduction was due to the decline in comparable hydrocarbon prices, which was offset by a combination of certain interest, reversals in provisions and a gain on the buy-back of the Ordinary Sukuk.
The company also received an $8 million (AED 29 million) contribution from the Zora field in the UAE and a revenue boost from incremental production during the quarter in Egypt.
Average realised prices for condensates in the second quarter was $34 per barrel (bbl) and LPG was $27 barrel of oil equivalent (boe). This is compared to $59 bbl for condensates and $36 boe for LPG in the second quarter 2015 and $30 bbl and $29 boe respectively, in the first quarter 2016.
At the period end the company's cash and bank balance stood at $344 million (AED 1,261 million), compared to $413 million (AED 1,514 million) as at 31 March 2016.
The reduction was principally due to the repurchase of $50 million (AED 183 million) (par value) of the company's outstanding Ordinary Sukuk, which resulted in one-off gain of $6 million (AED 22 million). The rest of the reduction was accounted for by capital expenditure in Zora, Sukuk profit payment and other overheads.
Group production in the second quarter 2016 was 66,650 barrels of oil equivalent per day (boepd), up 1% on Q2 2015. In Egypt, Balsam Field added incremental production of 4,000 boepd. The Zora Gas Field, which came on stream in January, contributed 3,250 boepd to Group production during the period.
For the first half of 2016, Dana Gas reported revenues of $178 million (AED 652 million) compared to $231 million (AED 847 million) in the same period in 2015. The reduction was again principally due to the sharp decline in hydrocarbon prices.
Net profit was $13 million (AED 48 million) compared to $19 million (AED 69 million) in H1 2015. The fall in revenues was balanced by lower G&A and operating costs as well as investment and finance income. ■