Dana Gas maiden year records Dh1 billion
Posted: 04 February 2008
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Abu Dhabi-listed Dana Gas has posted revenue of Dh1.036 billion for the first year of its operation in oil and gas production in the Middle East.
The Sharjah-based company announced a gross profit for the year of Dh307 million after adjusting for non cash depreciation and depletion of Dh241 million.
According to the report, EBITDA (Earnings before Interest, Depreciation and Depletion and Income Tax), reflecting cash flows from operations for the year, was Dh478 million. Net profit for the year was Dh111 million after finance charge of Dh153 million and income tax expense of Dh170 million, the company said.
“The year 2007 was a very important foundation year for Dana Gas, with major investments and important milestones achieved,” said Hamid Dhiya Jafar, Executive Chairman, Dana Gas.
He highlighted the acquisition of Centurion Energy, which launched its gas exploration and production and a strong and growing position in Egypt . It is then followed by the agreements in Northern Iraq for a major gas project to supply local power generation, and most recently the success of the $1 billion sukuk offering.
“It showed international confidence in the company’s unique position in the growing Middle East gas sector,” he said.
The company recorded a substantial growth in fourth quarter profitability with gross profit of Dh123 million and net profit of Dh39 million which were up 71% and 77% respectively from previous quarter, the report said.
Its oil and gas production operations in Egypt achieved a year-end exit production rate of 32.1 thousand barrels of oil equivalent per day, exceeding expectations as a result of the addition of production from the new discoveries in the Nile Delta, and revenues were further boosted by rising oil prices.
Total assets of Dana Gas also grew by 59% to Dh10.86 billion during the year from Dh6.84 billion the previous year, reflecting the asset acquisition of Centurion Energy, and a robust liquidity position as at year-end following successful completion of the $1.0 billion (Dh 3.67 billion) convertible sukuk issue last October, which was the company’s maiden launch into the international capital markets.
“We look forward to seeing the benefits of these achievements from 2008 onwards, with the expected operational start-up in the coming months of two of our major projects - the UAE Gas Project, and the Kurdistan Project in Northern Iraq - combined with further drilling and expansion of our position in Egypt, and also new projects in other countries in the region,” said Jafar.
January 2007 saw the successful acquisition of Toronto and London-listed Centurion Energy by Dana Gas for $1.1 billion, launching Dana Gas into the exploration and production sector with important assets and hydrocarbon potential in Egypt and also Tunisia , and Sao Tome in West Africa .
The company then grew upon this position in April 2007 by signing important agreements in the Kurdistan Region of Iraq, to develop, process and transport natural gas and liquids from the two existing giant gas fields to supply urgently needed gas for the new power plants currently under construction.
The project is nearly 70% complete and with gas production targeted by the middle of the year, is being implemented in partnership with Crescent Petroleum with a combined planned investment of $660 million by the end of 2008.
During 2007, the company also announced a number of new gas discoveries in its concessions in Egypt including in particular Southern Egypt’s historic first ever commercial oil discovery from its first exploration well drilled in the Komombo Concession, re-named “Al-Baraka” (the blessing) by the Egyptian Oil Minister, and already brought onto first production.
Dana Gas has also continued to build its senior management team with the appointment of the Executive Director for Upstream Operations, Director of Business Development, and Financial Controller, as well as several other senior executive appointments during the year. The group now employs over 400 people and has offices in the UAE, Egypt , Saudi Arabia , Bahrain , Canada , United Kingdom and the Kurdistan Region of Iraq.
“Dana Gas has come a long way in only its first two years, and is already a major player in the region’s energy sector, but this is just the beginning of the journey, and with the skills of our staff and the support of our shareholders, we look forward to continued growth and achievements in 2008 and beyond,” he added. |
