Abu Dhabi-listed energy firm records profit increase despite drop in quarterly revenue
Dana Gas made a net profit of AED241m ($66m) in the first quarter of 2013, up 17 percent from a year ago, with $135m raised from selling shares in Hungary's MOL offseting a slide in fuel sales revenue.
But revenue and gross profit fell during the first three months of 2013, because of a conservative capital expenditure policy and a temporary suspension of liquefied petroleum gas production in the Kurdistan region of Iraq, the company said in a statement.
Sales of hydrocarbons dropped 20 percent to AED557m, the company said in a statement on Tuesday.
But the one-off sale of around half Dana Gas' stake in Hungarian oil and gas group MOL in February helped offset lower sales revenue and a 3 percent drop in production.
"Revenues and gross profits are expected to increase as new discoveries in Egypt are brought to production and upon resumption of LPG production in Kurdistan in June 2013 following completion of repairs to the LPG loading bay," the company said.
Delays in getting paid for supplies of natural gas to Egypt and Kurdistan forced the company to restructure its debt late last year, after it failed to pay a $920m Islamic bond on maturity in October.
During the first three months of 2013, Dana collected $41m in receivables from Egypt and $32m from Kurdistan. But net receivables stood at $625m on March 31, up from $589m owed to Dana at the end of 2012.
Last October Dana became the first company in the UAE to miss repayment of a maturing bond, but it completed the refinancing of its $920m Islamic bond at the end of April.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.