Dana Gas Announce Q1 2015 Results
Dana Gas, the Middle East largest regional private sector natural gas Company announced its financial results for the first quarter ended 31 March 2015.
First quarter 2015 group production remained strong, with the Company delivering an average of 68,700 barrels of oil equivalent per day (‘boepd’) from its assets in Egypt and in the Kurdistan Region of Iraq (KRI). Group production has remained stable on a year-on-year basis (Q1 2014: 68,800 boepd) and the Company continued to be profitable despite the significant fall in global energy prices, the difficult macroeconomic environment in Egypt and the unpredictable security environment in Iraq.
The Company delivered gross revenues of $ 115 million in the first quarter, although this represents a year on year decline (Q1 2014: US$ 180 million) due to the impact of lower hydrocarbon prices. Group earnings before interest, tax, depreciation and amortization were US$ 55 million (Q1 2014: $ 106 million). Similarly, net profit was positive but also lower at $12 million (Q1 2014: $ 45 million) mainly due to lower hydrocarbon prices.
The Company’s average realized net price for the first quarter 2014 of condensate and LPG was $ 51 and $ 41 per boe respectively as opposed to $ 106 and $ 76 per boe in Q1 2014; in line with falling crude prices. The Company managed to partially offset the first quarter’s lower hydrocarbon prices with a further reduction in G&A costs and lower royalty and tax charges.
As at 31 March 2015, the cash balance at $ 144 million was lower when compared to $ 184 million at the end of 2014. The reduction in the cash balance was due to expenditure linked to the remaining equity investments required for the Zora project together with the sukuk profit payment, whilst the Company received no additional payments from the KRG linked to the peremptory order issued by the LCIA in October 2014, and the $ 18 million cash advance for local sales of condensates made in September 2014 was unwound. The Zora project term loan achieved financial closure during the quarter with $ 29 million drawn down till 31 March 2015. Additionally, Dana Gas Egypt signed a financial lease with CorpLease for certain equipment (equipment lease tranche) for an amount of $ 12.2 million.
Dr Patrick Allman-Ward, Chief Executive Officer, commented:
“Dana Gas has maintained a high-level of production across our operations and has delivered positive revenue and profit numbers despite the steep fall in hydrocarbon prices, the difficult macroeconomic environment in Egypt and the unpredictable security environment in Iraq. Our operational success and financial stability can also be attributed to our continued focused approach to capital expenditure and our cost discipline. With the GPEA project in Egypt making progress, we are in good shape to not only sustain but markedly increase our production in Egypt in the medium term.”
“Our Zora Gas Field project has completed the installation of the offshore platform and pre-commissioning work has already begun. This is an important milestone for Dana Gas as it plays into our long-term strategy of diversifying our producing assets base. It will also add an additional 6,650 boepd to Group production during the second half of the year.”
See Full Report: Dana Gas 1Q 2015 Financial Results
Source: Dana Gas