H1 2019 net profits jump by 438% at UAE's Dana Gas
In the first half of 2019, the company’s average production was 68,200 barrels of oil equivalent per day
Sharjah-based and Abu Dhabi-listed Dana Gas has recorded a 483% spike in H1 2019 net profits to reach $140m (AED513m), compared to corresponding numbers of $24m (AED88m) in the same period last year, with the company attributing the jump to “the recognition at the fair value of certain reserve-based earn-out entitlements amounting to $71m (AED260m)”.
In a stock markert missive to the Abu Dhabi Stock Exchange, the company said: "These are due from certain shareholders in Pearl Petroleum as considerations linked to the original share sale agreements, which were contingent upon proving up additional reserves in Pearl Petroleum which were confirmed by the recent independent reserves report by Gaffney Cline.”
The oil and gas company posted revenues of $242m (AED887m) — up by 3% — compared to last year.
Speaking about the company’s half-yearly positive results, chief executive officer of Dana Gas, Dr. Patrick Allman-Ward, said: "Dana Gas’ net profit 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% increase in the company’s 2P reserves in the KRI to over 1 billion barrel of oil equivalent,” added Allman-Ward.
In H1 2019 the company’s average production was 68,200 barrels of oil equivalent per day (boepd), which increased by 7% compared to 63,600 boepd in the same period in 2018.
The company said in the filing: "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."