Dana Gas’ 3Q earnings jump as production gathers pace

Higher production and realized hydrocarbon prices lifted Dana Gas’ 3Q net income 50% y-o-y to AED 165 mn, while its revenue rose 42% to AED 436 mn, according to the company’s earnings release (pdf). The bottom-line growth tracked a 17% increase in group production to 61.4k barrels of oil equivalent per day during the quarter.

9M in picture: On a 9M basis, revenue climbed 48% y-o-y to AED 1.38 bn, while net income rose 48% to AED 558 mn. However, excluding a one-off metering reconciliation of AED 176 mn, the firm’s bottom line was broadly flat, inching up around AED 3 mn. Daily production averaged 55.8k barrels of oil equivalent, up 6%.

Expansion starts paying: The energy producer rode a wave of stronger oil prices and higher production across Egypt and Iraq’s Kurdistan region. Higher utilization at Iraq’s Khor Mor gas field boosted results, as did six new wells and three recompletions in Egypt, which added 50 bn cubic feet of resources and 35 mn scf / d in production.

More on the way: “We hope to utilize our full production capacity in the coming months,” Mohammed Mubaideen, the company’s head of investor relations, told CNBC Arabia. Dana Gas currently produces about 570 mmcf / d of gas against an installed capacity of 750 mmcf / d, he said, with regional conditions limiting utilization at Khor Mor. Dana Gas has also recently inked a supply agreement with Iraq’s federal electricity ministry, expanding its customer base beyond the Kurdistan Regional Government.