UAE-based Dana Gas has reported a big jump in H1 2019 net profit to $140 million compared with $24 million in H1 2018.
A big reason for this jump was mainly due to the recognition at fair value of certain reserve based earn out entitlements amounting to $71 million. Net profit from core operations increased by 187 per cent to $69 million versus $24 million in H1 2018. This was principally due to an increase in KRI production post debottlenecking which added $20 million, Sukuk profit savings and reimbursement of arbitration costs.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented: "Dana Gas's net profit of $140million in the first half 2019 is a clear reflection of the Company's strong operational and financial performance with strongly rising production and revenues from the KRI. An independent certification exercise has shown a 10 per cent increase in the Company's 2P reserves in the KRI to over 1 billion boe. This external reserve auditor's report confirms our view that the Khor Mor and Chemchemal Fields are world class and are probably Iraq's biggest gas fields."
Revenue for the first six months of the year advanced 3 per cent to $242 million as increased production in the KRI added $27 million to the topline which was partially offset by $15 million in reduced revenue due to price declines and $5 million due to lower production in Egypt.
The company's average production in H1 2019 was 68,200 boepd, a 7 per cent increase as compared with 63,600 boepd in H1 2018. Output in the KRI was up significantly to 32,400 boepd in H1 2019 compared to 26,100 boepd in H1 2018, while Egypt output was 4 per cent lower at 34,100 boepd during the same time frame.