SHARJAH, 8th February, 2023 (WAM) — Dana Gas today announced its preliminary financial results for the year 2022. The company reported an increase in revenues by 17 percent to AED1.94 billion (US$529 million) in 2022 compared to AED1.66 billion (US$452 million) in 2021.
The increase in revenues is due to higher realised prices and production output in the Kurdistan Region of Iraq (KRI). Production in the KRI and Egypt remained uninterrupted throughout the year.
Excluding other income and impairments, Dana Gas reported an adjusted net profit of AED718 million (US$196 million) as compared to AED469 million (US$128 million) in 2021, an increase of 53 percent. The strong year-on-year profits were sustained by high energy prices and prudent cost control.
The company also reported a net profit of AED667 million (US$182 million) in 2022 as compared to AED1.16 billion (US$317 million) in 2021.
Operational costs decreased by five percent to AED209 million (US$57 million) in 2022 compared to AED220 million (US$60 million) in 2021.
In 2022, production in the KRI increased by one percent to 34,300 barrels of oil equivalent per day (boepd). Following the successful completion of further plant de-bottlenecking enhancements at the Khor Mor facility in the KRI in the second half of the year, the plant’s production capacity increased by 50 million standard cubic feet per day (scf/d) to 500 million scf/d.
Gas production reached this new record of 500 million scf/d on the 14th January, which will have a positive impact on production and revenues in 2023.
The Company reached an agreement with the Egyptian Natural Gas Holding Company (EGAS) for consolidation of its existing concessions on enhanced fiscal terms. The new terms will extend the life of Dana Gas’ economic assets and help the Company maximise value for all stakeholders over the coming years. The agreement is subject to the Egyptian parliament rectification which is expected later this year.
Dr. Patrick Allman-Ward, CEO of Dana Gas, commented, “Our strong results for the year are a testament to our ability to control costs and maintain production levels amid a prolonged environment of high energy prices. In 2022, we managed to optimise our assets in the KRI, reaching record levels of production and increasing capacity by a further 50 million scf/d, following the completion of a by-pass project.
“The successful completion of the project in the KRI and our plans for maximising production in Egypt will have positive impact on the environment as gas production displaces more carbon intensive fuels for power generation, which will enhance the quality of life of residents in the KRI, Iraq and Egypt.”
He added, “Our operational performance, in which all our assets continued to produce uninterrupted throughout the year, even under testing economic circumstances and security challenges, exemplifies our ability to keep delivering on our commitments.”
Average group production declined slightly in 2022 to 60,200 boepd, a three percent reduction from 62,100 boepd in 2021. This resulted from an eight percent reduction in Egypt to 25,900 boepd, due to natural field declines, offset by one percent increase in production output in the KRI to 34,300 boepd versus 33,800 in 2021. Both KRI and Egypt operations continued uninterrupted throughout 2022.
The Company’s cash balance at year-end stood at AED553 (US$151 million), including AED322 million (US$88 million) held at the Pearl level.
The Group collected a total of AED1.16 billion (US$318 million) in 2022, with Egypt and the KRI contributing AED311 million (US$85 million) and AED854 million (US$233 million) respectively.
As of 31st December 2022, the Company’s Egypt and KRI receivables increased to AED110 million (US$30 million) and AED235 million (US$64 million) respectively. The increase in the KRI is a result of delays in the payment of invoices. In Egypt, the macroeconomic situation has resulted in restrictions in repatriation of US dollars. As a result, investment will remain in line with collections and foreign currency availability. The company will be taking appropriate measures to ensure recovery of all delayed payments as soon as possible.