- Arbitration hearings scheduled for Iraq Kurdish, Iran cases
- Cash declines as company buys back some outstanding sukuk
Dana Gas PJSC, which produces natural gas in Egypt, Iraq and the United Arab Emirates, boosted second-quarter profit as interest income more than made up for a decline in oil and natural gas prices.
Net income rose to 26 million dirhams ($7.1 million) for the three months ended June 30, from 25 million dirhams a year earlier, the company said in an e-mailed statement Thursday. Interest income on overdue receivables was 51 million dirhams, with cash on hand at 1.26 billion dirhams. Revenue fell 17 percent to 351 million dirhams.
Dana Gas pumps fuel from its home base of Sharjah in the U.A.E. along with production areas in Egypt and Iraq’s semi-autonomous Kurdish region. Cash on hand has declined as the company bought back $50.3 million of outstanding Islamic bonds and may consider more buybacks.
“Our finances remain in control with significant cash in hand,” Chief Executive Office Patrick Allman-Ward said on a conference call with reporters. “Results are steady in a continuing challenging environment.”
Average realized prices for condensate in the period fell to $34 a barrel, from $59, and liquefied petroleum gas slipped to $27 a barrel of oil equivalent from $36, Dana Gas said. Dana Gas boosted production 1 percent to 66,650 barrels of oil equivalent of fuels including condensate, a light liquid oil, natural gas and liquefied petroleum gas, it said.
The company has arbitration cases related to operations in Iraq and Iran. The first two-week hearing in the Iraqi case is scheduled to start Sept. 5, and another hearing related to the same case is likely later this year or early next year, the company said. A final hearing to determine damages in the company’s case in Iran is scheduled for Oct. 28 in the Hague, the company said.