The UAE-based Dana Gas reported a 35% year-on-year (YoY) increase in Q3 2022 net profit to 182 million dirhams ($50 million) on higher realised prices and improved performance at the Khor Mor Gas Plant in Kurdistan, which offset lower levels of production in Egypt.
The result was mainly in line with the analysts’ mean profit estimates as compiled by data provider Refinitiv. However, EBITDA, despite being higher on year at $76 million, came below estimate of $86.58 million.
Chief Executive Patrick Allman-Ward said while headwinds to the global economy are increasing amid higher inflation and slowing growth, "the outlook remains positive given continued elevated energy prices and the company’s strong balance sheet and low debt position.”
Dana, which is the Middle East's largest private sector natural gas company, said it will look to develop business both upstream and midstream. Its cash position as of September 30 stood at AED784 million, including AED271 million held at the Pearl Petroleum Co., the consortium led by Dana Gas and Crescent Petroleum of the UAE.
The group’s production in the quarter was 60,600 barrels of oil equivalent (boepd), a 4% reduction from 62,500 boepd in Q3 2021. This was due to natural field depletion in Egypt, partly offset by higher production in Kurdistan.
Q3 gross revenue came in at AED480 million compared with AED432 million in the year-ago period.
The company distributed an interim dividend to shareholders in October for the first six months of 2022 of 4.5 fils per share, equivalent to AED315 million.
(Reporting by Brinda Darasha; editing by Daniel Luiz)