Dana Gas PJSC the Middle East’s largest regional private sector natural gas Company announced its preliminary financial results for the year ended 31st December 2011.
Dana Gas reported gross revenue of AED 2.5 billion from the sale of hydrocarbons and gross profit for the year of AED 1.3 billion representing increases of 42% and 71% respectively.
Net profit was AED 506 million, 220% rise reflecting growing production higher realized oil prices and optimized cost management in 2011. Earnings before interest, tax, depreciation, amortization and exploration were AED 1.6 billion, YoY increase of 54%.
The above Income Statement excludes an unrealized loss of AED 326 million on Dana Gas’s 3% 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% and the HUF/USD exchange rate declined by 12% 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 AED 180 million.
Net cash generated from operations was AED 357 million. In 2011 the Group collected AED 649 million from its share of receivables in Egypt and Kurdistan Region of Iraq.
Mr Hamid Jafar chairman of Dana Gas said that “For Dana Gas, 2011 was a year of successful operational growth against a backdrop of unprecedented regional political turmoil. 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. 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.”
Mr Ahmed Al Arbeed CEO of of Dana Gas said that “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.”
