UAE'S Dana Gas Q1 profit more than doubles

Natural gas producer was helped by high oil prices and increased Iraq production
UAE'S Dana Gas Q1 profit more than doubles
Dana Gas chairman Hamid Jafar.
By Reuters
Tue 15 May 2012 10:13 AM

Dana Gas, which is facing a US$1bn Islamic bond maturity in October, said on Tuesday that quarterly profit more than doubled, helped by high oil prices and increased production in Iraq's Kurdistan region.

The Abu Dhabi-listed natural gas producer, which has operations in the UAE, Egypt and Kurdistan, posted first-quarter net profit of AED206m (US$56.08m), compared with AED92m for the year-ago period.

Net revenue rose 19.2 percent to AED572m in the quarter, Dana said in the statement.

Dana, which owns a 3 percent stake in Hungarian group MOL, hired Blackstone Group as a financial advisor to assess options for the bond, sources told Reuters last month.

It is also being advised by Deutsche Bank.

Uncertainty regarding the repayment of the bond has weighed on Dana shares, which have fallen 43 percent in the past year.

The Gulf's only listed natural gas firm has faced payment delays for gas delivered to Egypt, due to political unrest. Dana said it collected AED192m against receivables in the first-quarter. At the end of the quarter, trade receivables from Egypt stood at AED825m, Dana said.

Investments in the Kurdistan region of Iraq stood at AED1.3bn at March 31.

Last year, Dana proposed listing some of its assets on the London Stock Exchange and sources close to the matter said the company was still looking to do so this year, although they would not proceed if market conditions were unfavorable.

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