PHOTO
* Swings to Q4 profit of $134.2 mln - Reuters calculation
* Gains from arbitration settlement with RWE - statement
* Offsets impact of lower oil prices, Egypt production drop
(Adds background, details)
By Archana Narayanan
DUBAI, Feb 14 (Reuters) - United Arab Emirates-based energy firm Dana Gas swung to a $134.2 million profit in the fourth quarter, as a one-time contribution from an arbitration process helped offset the global downturn in energy prices.
Dana made a net profit of $134.2 million in the three months to Dec. 31, compared with a loss of $4 million in the prior-year period, Reuters calculated, based on the firm's full-year earnings statement in lieu of a quarterly breakdown.
Dana Gas reported falling profits in the first and second quarters and a loss in the third quarter of 2015, hit by oil prices. Its chief executive, Patrick Allman-Ward, warned in November after reporting the third-quarter loss that the final three months of 2015 would be "similarly challenging".
However, the company said in a statement it received cash later that month from RWE RWEG.DE
settling an arbitration which transferred a 5 percent interest in Pearl Petroleum Company. It didn't disclose the cash amount received.
RWEST Middle East, a unit of the German energy firm, agreed to join the Pearl Petroleum group, which reduced the stakes of both Dana Gas and Crescent Petroleum from 40 percent to 35 percent, following a London arbitration process initially begun in December 2010.
The cash also helped to boost its annual profit for 2015 to $144 million, up from $125 million in the previous year.
The tumble in crude prices since a June 2014 peak and a 15 percent decline in production from Egypt contributed to a 39 percent fall in 2015 gross revenue to $417 million, the statement said.
Like oil companies around the world, Dana has been cutting costs to adapt to lower prices. It has previously announced it would cut general and administrative expenses by 55 percent in 2016 and operating expenses by a smaller amount.
However, Allman-Ward added in Sunday's statement that it expects higher production levels and resulting cash flows, particularly in Egypt and also in the UAE with the anticipated start-up of the Zora Field.
Egypt still owes Dana $221 million as of Dec. 31, as well as $727 million in the Kurdistan region of Iraq, according to the statement.
(Editing by David French/Ruth Pitchford) ((archana.narayanan@thomsonreuters.com; +971 445 36240; Reuters Messaging: archana.narayanan.thomsonreuters.com@reuters.net))
* Gains from arbitration settlement with RWE - statement
* Offsets impact of lower oil prices, Egypt production drop
(Adds background, details)
By Archana Narayanan
DUBAI, Feb 14 (Reuters) - United Arab Emirates-based energy firm Dana Gas swung to a $134.2 million profit in the fourth quarter, as a one-time contribution from an arbitration process helped offset the global downturn in energy prices.
Dana made a net profit of $134.2 million in the three months to Dec. 31, compared with a loss of $4 million in the prior-year period, Reuters calculated, based on the firm's full-year earnings statement in lieu of a quarterly breakdown.
Dana Gas reported falling profits in the first and second quarters and a loss in the third quarter of 2015, hit by oil prices. Its chief executive, Patrick Allman-Ward, warned in November after reporting the third-quarter loss that the final three months of 2015 would be "similarly challenging".
However, the company said in a statement it received cash later that month from RWE
RWEST Middle East, a unit of the German energy firm, agreed to join the Pearl Petroleum group, which reduced the stakes of both Dana Gas and Crescent Petroleum from 40 percent to 35 percent, following a London arbitration process initially begun in December 2010.
The cash also helped to boost its annual profit for 2015 to $144 million, up from $125 million in the previous year.
The tumble in crude prices since a June 2014 peak and a 15 percent decline in production from Egypt contributed to a 39 percent fall in 2015 gross revenue to $417 million, the statement said.
Like oil companies around the world, Dana has been cutting costs to adapt to lower prices. It has previously announced it would cut general and administrative expenses by 55 percent in 2016 and operating expenses by a smaller amount.
However, Allman-Ward added in Sunday's statement that it expects higher production levels and resulting cash flows, particularly in Egypt and also in the UAE with the anticipated start-up of the Zora Field.
Egypt still owes Dana $221 million as of Dec. 31, as well as $727 million in the Kurdistan region of Iraq, according to the statement.
(Editing by David French/Ruth Pitchford) ((archana.narayanan@thomsonreuters.com; +971 445 36240; Reuters Messaging: archana.narayanan.thomsonreuters.com@reuters.net))