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Dana Gas full year net profit increased 15% to $144 million

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Staff writer ▼ | February 15, 2016
Dana Gas reported its preliminary unaudited financial results for the year ended December 31, 2015.
Dana Gas
Dana Gas   The fall in revenue and gross profit
The company’s full year net profit increased 15% to $144 million (AED528 million), compared to $125 million (AED457 million) in 2014. The company reported Gross Revenues and Gross Profit of $417 million (AED1.5 billion) and $126 million (AED463 million) respectively, down from $683 million (AED2.5 billion) and $303 million (AED1.1 billion) for the full year 2014.

The fall in revenue and gross profit was directly attributable to the sharp decline in world oil prices last year, as well as a 15% production decline in Egypt.

The company’s year-end cash and bank balance stood at $470 million (AED1.7 billion), up from $184 million (AED674 million) at end 2014. The key contributor to this increase was the cash received from RWE in November in consideration of the agreed settlement of the arbitration and sale of 5% interest in Pearl Petroleum company Limited (PPCL or the Consortium).

This offset a declining cash position caused by continued deficient payments from Kurdistan in combination with ongoing overhead costs and investment requirements in Egypt and the UAE.

During the year the company also significantly increased its oil & gas reserves. Gaffney Cline & Associates has certified Dana Gas's Proved Reserves in Egypt at 83 MMboe, an increase of 41%.

In addition Proved plus Probable (2P) reserves of Dana Gas Egypt increased to 130 MMboe corresponding to a reserve replacement ratio (RRR) of 237%. The Zora Field 2P reserves remained steady at 31 MMboe.

The company believes that total in-place gas and oil resources in the Khor Mor and Chemchemal Fields are significant. PPCL’s latest estimate (P50) of total risked in-place resources amount to 75 Tcf of gas and 7 billion barrels of oil.

Based upon production data from only 1 of the 12 defined compartments in the Khor Mor Field, the current remaining Proven plus Probable (2P) reserves are believed to be at least 9 Tcf. The company’s 35% share equates to 525 MMboe.

The assessment of the hydrocarbon resources in both fields is currently under review by PPCL’s appointed external independent petroleum consultant and its audited figures, and company’s share of reserves and resources, will be disclosed with the final financial results.

The company ended the year with an average total production of 63,900 barrels of oil equivalent per day (boepd), a 7% decrease compared to 68,900 boepd at end 2014, although production in Kurdistan saw an increase of 800 boepd (3%) of production.