Dana Gas’s results of operations for the first half of 2023 showed a 25% decline in profits compared to the same period last year, due to falling oil prices.
Today, Wednesday, August 9 (2023), Dana Gas, the largest private natural gas company in the Middle East, announced its financial results for the first half ending June 30, 2023.
Dana Gas’ business results for the first half of 2023 recorded a net profit of 304 million dirhams ($83 million), compared to 407 million dirhams ($111 million) in the first half of 2022.
And come back Report The company’s profit fell 25% in the first half of the year due to a drop in the average price of Brent crude oil to $80 a barrel in the first half of 2022 from $107 a barrel.
The decrease comes at a time when other oil companies operating in the region have halted their oil production due to additional discounts on condensate sales in Iraq’s Kurdistan region and as the company began selling condensate to non-governmental parties.
Dana Gas Revenue
Dana Gas’ business results for the first half of 2023 saw a 22% decline in the company’s revenue to 814 million dirhams ($222 million), compared to 1,041 million dirhams ($284 million) in the same period in 2022.
The company attributed the decline in prices to lower global oil and gas prices, as the average selling price for the January-end-June period was $56 per barrel of condensate and $37 per barrel of oil equivalent. Liquefied petroleum gas compared with $87 and $44 per barrel in the first half of 2022, respectively.
Increasing the company’s production in Iraq’s Kurdistan region and reducing operating costs by 15% had a positive impact on mitigating the impact of low oil prices, as indicated by Dana Gas’s report of business results for the first half of 2023. Through special energy platform.
Pearl Petroleum recently received $101 million from the Kurdistan Regional Government.
Discussions are ongoing with the Kurdistan Regional Government of Iraq to pay all dues as soon as possible.
Unlike other operators in Iraq’s Kurdistan region, Pearl Petroleum’s production operations have continued uninterrupted because its products are consumed locally.
Oil prices
Dana Gas CEO, Dr. Patrick Allman-Ward said: “Dana Gas’ business results for the first half of 2023 reflect the challenging environment faced by hydrocarbon producers amid lower average global oil prices.”
Regarding Dana Gas’ results of operations in the first half of 2023, he added: “To face this decline in energy prices, the company focused on increasing production, reducing operating costs and collecting arrears from the governments of Egypt and the Kurdistan Region of Iraq.”
He indicated that the company is optimistic about the positive impact this could have on the company’s financial results for the rest of the year, with the continuation of the upward trend in oil prices recently.
Dana Gas Production
In the report on the results of the business of Dana Gas in the first half of 2023, the company’s production was 59.8 thousand barrels of oil equivalent per day, which is a decrease of 2% compared to 611 thousand barrels of oil equivalent per day in the first half. 2022.
This came as the rate of production in Egypt fell more than the increase achieved in Iraq’s Kurdistan Region.
The production rate in Egypt has decreased by 12% as a result of a natural decline in the production of fields, thanks to efficient management of reserves and improving production from currently operating wells.
The results of Dana Gas’ operations in the first half of 2023 show a 6% increase in production in Iraq’s Kurdistan region, reaching 36.4 thousand barrels of oil equivalent per day, compared to 34.5 thousand barrels of oil equivalent per day. During the same period in 2022.
The rise was due to the completion of a disruption program that added 50 million cubic feet to the company’s daily production in January, according to Dana Gas’s business results report for the first half of 2023.
During the second quarter, partial maintenance works at the Khor Mor plant were successfully completed without any health, safety, security and environmental incidents occurring, which naturally had a temporary impact on the plant’s production capacity during the maintenance period.
“Bearl Petroleum” completed the drilling of 6 wells of the “Core More 250” project, and upon completion, the project will add 250 million cubic feet to the station’s total production capacity, reaching 750 million standard cubic feet. day
Dana Gas Dues
The results of Dana Gas’ business for the first half of 2023 revealed that the company’s cash flow levels were stable at 370 million dirhams ($101 million), including 301 million dirhams ($82 million) held with Pearl Petroleum.
The company collected a total of 388 million dirhams ($106 million) in the first half of 2023, with 293 million dirhams ($80 million) received from the Kurdistan region of Iraq, and it received 95 million dirhams ($26 million). From Egypt.
At the end of the first half of 2023, the company had 356 million dirhams ($97 million) in the Kurdistan Region of Iraq and 150 million dirhams ($41 million) in Egypt.
In May, the company received regulatory approval to raise the ceiling on foreign ownership of its shares, which repealed the requirement that UAE nationals hold no less than 51% of the capital, in line with the provisions of the New Business Companies Law. Companies operating in the country.
Foreign investors can hold up to 100% of the company’s shares after the maximum foreign ownership does not exceed 49%, a decision approved by the company’s shareholders during the annual general assembly meeting held on April 26.
Gas production in Egypt
On the other hand, Dana Gas, listed on the Abu Dhabi Stock Exchange, is awaiting the approval of the Egyptian Parliament in the coming months of the deal it recently signed with the Egyptian Natural Gas Holding Company (EGAS). Drilling of wells also converted economic reserves.
With the agreement, the company seeks to increase its investments in Egypt past two billion dollars by 2023 by adding 11 new wells.
Dana Gas has reached an agreement with the Egyptian company EGAS that will consolidate the company’s existing concession contracts in the Nile Delta region, allowing for further investments and access to hydrocarbon resources that were not economically viable under the old terms.
The next two years will include the drilling of 6 exploratory wells and 5 development wells, with a total investment of about $100 million, which will add 80 billion cubic feet of reserves.
The company currently has 4 concessions in Egypt and is seeking to combine them into one concession in a deal awaiting approval by the House of Representatives.
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