Abu Dhabi, (Business News Report)|| Emirati company Dana Gas doubled its profits in the first quarter of this year 2022, supported by energy prices that rose in the wake of the Russian-Ukrainian war.
According to an announcement, the average selling prices achieved during the first quarter rose to $82 per barrel of condensate, and $43 per barrel of oil equivalent of liquefied petroleum gas.
While the selling prices during the first quarter of last year were $44 and $33, respectively.
Dr. Patrick Allman-Ward, CEO of Dana Gas, said that the company achieved one of its best quarterly results, benefiting from higher energy prices and lower operating costs.
He pointed out that the strong operational performance of the company’s project in the Kurdistan region of Iraq contributed a major role in these results.
The total production of Dana Gas declined in the first quarter to 62.4 thousand barrels of oil equivalent per day, compared to 64.9 thousand barrels of oil equivalent per day for the same period in 2021, due to the decrease in production from Egypt by 7% to reach 27 thousand barrels of oil equivalent per day as a result of due to the natural decline in the production of fields. As for the Kurdistan region of Iraq, production has remained constant at an average of 35.4 barrels of oil equivalent per day.
Ward added, “The remainder of 2022 looks very encouraging in light of the fact that demand rates and energy prices remain strong despite the current global economic challenges.”
During the next stage, the company aims to complete the implementation of the project to expand and develop the gas processing facility in Khor Mor (Khormore 250) at a cost of $600 million.
The next phase of the project is expected to increase the company’s total production capacity by 25% by the second quarter of 2023, which will contribute to improving revenues and profits and increasing distributions, according to the CEO.
The company’s shareholders agreed, on April 21, to distribute cash dividends of 4.5 fils per share for the second half of 2021, and it is scheduled to pay these dividends to shareholders on May 19, bringing the total dividends for the year 2021 to 8 fils per share.
Net profit reached 198 million dirhams, an increase of 125%, and revenues increased by 32%, reaching 513 million dirhams.
As well as, earnings before interest, taxes, depreciation and amortization grew 62% to 297 million dirhams.
Cash and bank balances amounted to 766 million dirhams, an increase of 13% over the end of 2021.