Dana Gas Has Quarterly Profit, More Cash After RWE Paymentby
Company received arbitration payment for stake in Iraq venture
Dana Gas plans to boost production by the end of the year
Dana Gas PJSC, the United Arab Emirates-based company with most of its production in Egypt and Iraq, had a quarterly profit after receiving an arbitration settlement and payment for a stake in its Iraqi venture.
Net income was 487 million dirhams ($133 million) in the fourth quarter, compared with a loss of 15 million dirhams a year earlier, according to Bloomberg calculations based on the company’s preliminary results released Sunday. Full-year profit rose 15 percent to 528 million dirhams, the company said in a statement Sunday.
Dana Gas’s cash and bank balances more than doubled to 1.7 billion dirhams at the end of the year from 674 million dirhams at the end of 2014 as a result of a settlement with RWE AG’s trading unit, according to the statement. In November, Dana Gas and its partners settled an arbitration dispute with the RWE unit and agreed to sell a 10 percent stake in the Pearl Petroleum venture in the semi-autonomous Kurdish region in Iraq.
“We exited 2015 in a healthy financial position,” Chief Executive Officer Patrick Allman-Ward told reporters on a conference call. “We are committed to maintaining the strength of our balance sheet.” The company is aware it has $750 million of outstanding sukuk to be repaid in 2017, he said.
The company plans to boost production to more than 70,000 barrels of oil equivalent a day by the end of the year, Allman-Ward said on the call. Production was 63,900 barrels of oil equivalent in 2015.
Sales fell to 1.5 billion dirhams last year from 2.5 billion dirhams a year earlier as the decline in oil prices eroded profit, Allman-Ward said. Global benchmark Brent crude has dropped about 40 percent in the past year. Gas prices are often linked to oil prices.