Dana Gas, the UAE-based energy company, has reported a net profit of Dh183 million ($50 million) for the first quarter of 2023, a decline of 7% compared to the same period in 2022 when the company recorded a net profit of Dh198 million ($54 million).
The decrease in profitability for the quarter was largely attributed to a 22% decrease in the company’s realised prices during the period, which was partially offset by a production increase in the Kurdistan Region of Iraq (KRI) and a 14% reduction in operating costs.
Despite the challenging market conditions, Dana Gas remained focused on its cost management strategy and was able to reduce its operating costs, leading to a more efficient operation. The company’s KRI operations, in particular, saw an increase in production, which contributed to the offset of the decline in realised prices.
Dana Gas reported revenue of Dh447 million ($122 million) for the first quarter of 2023, a decrease of 13% compared to the same period in 2022 when the company recorded revenue of Dh513 million ($140 million). The decrease in revenue, and subsequently net profit, was primarily due to a pullback in energy prices from high levels.
Despite the challenging market conditions, the company remains optimistic about its future prospects. In a statement, Dana Gas CEO, Dr Patrick Allman-Ward, said, “Despite the impact of lower realised prices, we remain confident in our ability to create value and generate sustainable returns for our shareholders. Our focus on operational excellence and cost management has enabled us to navigate the challenging market conditions and maintain our position as a leading player in the energy sector.”
Dana Gas is one of the leading energy companies in the Middle East and North Africa region, with operations in the UAE, Egypt, and the KRI. The company is primarily engaged in the exploration, production, and sale of natural gas, and has been a key player in the development of the energy sector in the region.
The company’s operations in the KRI have been particularly successful, with the region contributing significantly to the company’s production growth in recent years. In 2022, the company’s KRI operations saw a 16% increase in production, which helped to offset the decline in realised prices and contributed to the company’s overall profitability.
Dana Gas has also been actively pursuing growth opportunities in other areas, including Egypt, where the company has a significant presence in the natural gas sector. In 2022, the company completed a transaction to acquire a 100% stake in the El Wastani Petroleum Company, which operates in the Nile Delta region of Egypt.
Dana Gas’ operations in the KRI have been a key driver of the company’s growth in recent years, with the region accounting for a significant portion of the company’s production. The company has been actively investing in the region, with a focus on expanding its production capacity and exploring new opportunities.
The acquisition of El Wastani is expected to significantly increase Dana Gas’ production in Egypt and provide the company with additional growth opportunities in the region. The company has also been exploring opportunities in other areas, including Oman and Iraq, as it looks to expand its operations and increase its production capacity.
In conclusion, despite the challenging market conditions, Dana Gas has been able to maintain its position as a leading player in the energy sector, thanks to its focus on operational excellence, cost management, and its successful operations in the KRI. The company’s acquisition of El Wastani in Egypt is also expected to provide additional growth opportunities for the company in the coming years. With its strong track record and commitment to sustainable growth, Dana Gas is well-positioned to navigate the challenges of the energy sector and deliver long-term value to its shareholders.
