UAE energy firm Dana Gas moving ahead with expansion plans, posts 41% rise in net profit

Listed company says lower borrowings, improved revenues boost profit

  
Dana Gas and Crescent Petroleum gas production from Khor Mor Field. Image used for illustrative purpose.

Dana Gas and Crescent Petroleum gas production from Khor Mor Field. Image used for illustrative purpose.

Dana Gas / Handout via Zawya

Abu Dhabi-listed energy firm Dana Gas is committed to go ahead with its plan to boost its output capacity in the Kurdish region, chief executive officer Patrick Allman-Ward said on Sunday. 

Dana reported a strong performance for the first three months of the year, with net profits rising by 41 percent to $24 million, compared to $17 million during the same period last year. 

The company attributed the increase in net profit to improved revenues from higher production in the Kurdistan Region of Iraq (KRI), as well as a reduction in finance cost due to lower borrowings in the first quarter of 2021. 

“Dana Gas has delivered a strong quarter with robust operational performance, continuing the positive momentum from the previous period. In the KRI, we are moving ahead without expansion plans to significantly boost production,” the CEO said. 

Dana Gas is looking to increase production output in the KRI from 440 million standard cubic feet per day (mmscf/d) to 690 mmscf/d by April 2023.  

The energy firm, through the consortium Pearl Petroleum, and its partner Crescent Petroleum, has announced the resumption of the expansion project at the Khor Mor field in KRI.  

The KM250 project, which involves a further investment by Pearl of $600 million, was earlier put on hold due to the coronavirus pandemic. 

“[The project] is now on track for a new target start date of April 2023, after [an] agreement to lift the force majeure,” Dana Gas said. 

“This will contribute positively to our top and bottom line,” Dana said. 

(Writing by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@refinitiv.com 

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© ZAWYA 2021

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