SULAIMANI – UAE-based energy giant Dana Gas said on Sunday (May 9) that its profits jumped by seven million to 24 million in the first quarter in 2021, compared to the same period in 2020 a result of improved revenues from higher production in the Kurdistan Region and a reduction in finance cost due to lower borrowings.
The natural gas company earned $17 million last year in the first quarter in 2020, reported the
giant in its Q1-end statement.
The obtained revenue was $106 million in the 2021 Q1, 2% higher compared to $104 million in the same timespan last year, according to the company’s first quarter figures. “The improved performance was mainly due to a 9% production increase in the KRI.," it said referring to the Kurdistan Region Iraq or Kurdistan Region.
“Realized price averaged $44/bbl for condensate and $33/boe for LPG compared to $41/bbl and $30/boe respectively in Q1 2020.”
“Dana Gas has delivered a strong quarter with robust operational performance, continuing the positive momentum from the previous period. In the KRI we are moving ahead with our expansion plans to significantly boost production from 440 MMscf/d to 690 MMscf/d by April 2023,” Dana Gas CEO Patrick Allman-Ward said.
“We maintained our strong financial position, with increased production from the KRI and lower financing costs following the repayment of the Company’s outstanding Sukuk in Q4 2020. I am pleased that we maintained the dividend to Shareholders, for the fourth consecutive year, despite adverse economic conditions.”
Dana Gas, part of the Pearl Consortium, is expanding the Khor Mor gas field in Sulaimani’s Chamchamal district, which amounts to 250 MMcf/d. Allman-Ward said on Sunday, reported by S&P Global.
The energy company is also in talks
with Baghdad, Kurdish and Turkish potential buyers for a gas sales agreement for its second train. Baghdad is forced by Washington to wean itself off Iranian gas imports for its electricity needs.
"We are of course looking to sign a sales gas agreement for the second train, the KM 500 and we continue to engage with relevant counterparties both Turkish and the federal government and actually also locally in Kurdistan region itself as well.”
As of end-2020, Dana Gas had total debt of $163 million including $73 million for a KRG expansion project, an investor presentation showed.
In October 2013, Dana Gas, its parent Crescent Petroleum and its partners, filed a case against the KRG in the London Court of International Arbitration in London, accusing it of underpaying for gas liquids production, according to Reuters.
The KRG founded the Kurdistan Gas Project in 2007 when Dana Gas and Crescent Petroleum entered into a deal for exclusive rights to appraise, develop, produce, market, and sell hydrocarbons from the Khor Mor fields.