Hamid Jafar, chairman of Dana Gas, said: “The consequences of the so-called ‘Arab Spring’ are presenting the oil and gas industry with considerable challenges in the short term, and Dana Gas is not immune to these.”
Jafar added: “However, we enjoy amicable and cooperative relationships with our host governments in the UAE, Egypt and the Kurdistan region of Iraq. We are confident of developing and maintaining our host governments’ essential gas supplies, and as applicable agreeing plans for payment of outstanding sums due to us.”
He also said 2011 was a year of successful operational growth for Dana Gas against a backdrop of unprecedented regional political turmoil.
Ahmed Al-Arbeed, chief executive officer of Dana Gas, added: “We are proud of the company’s strong operational performance in 2011, particularly given the challenging environment. We have successfully continued to grow our reserves and production, and are now very focused on receivables collections while preserving our assets for benefit of all stakeholders.”
According to a statement received here, Dana Gas reported gross revenue of AED2.5 billion from the sale of hydrocarbons, representing an increase of 42 percent from AED1.8 billion in 2010.
The gross profit for the year was AED1.3 billion. This is an increase of 71 percent from AED781 million in 2010.
Its net profit was AED506 million, a 220 percent rise from AED158 million in 2010, reflecting growing production, higher realized oil prices, and optimized cost management in 2011.
Earnings before interest, tax, depreciation, amortization and exploration (EBITDAX) were AED1.6 billion (2010: AED1 billion), a year-on-year increase of 54 percent.
The income statement excludes an unrealized loss of AED326 million on Dana Gas’s 3 percent shareholding in MOL, the Hungarian-listed Oil and Gas Company and a key partner in Dana Gas’s Kurdistan operations.
MOL’s share price declined by 16 percent and the HUF/$ exchange rate declined by 12 percent in 2011.
This loss is booked directly to equity in line with the company’s published accounting policy, resulting in total comprehensive income for 2011 of AED180 million.
Net cash generated from operations was AED357 million. In 2011, the group collected AED 649 million from its share of receivables in Egypt and Kurdistan region of Iraq.
The group’s net production averaged 66,200 barrels of oil equivalent per day (boepd) from its interests in Egypt and the Kurdistan region of Iraq for 2011.
This represents a year-on-year increase of 19 percent.