UAE energy firm Dana Gas reported Wednesday a 7.6% year-on-year decrease in net profit to $50 million (AED 183 million) for the first quarter of 2023, mainly due to a drop in energy prices.
Dana Gas said the impact of lower realized prices on the company’s profitability was partially offset by a production increase in the Kurdistan Region of Iraq (KRI) and a 14% reduction in operating costs.
Revenue also fell by 13% to $122 million (AED 447 million) in the quarter ended March, from $140 million (AED 513 million) in the corresponding period last year, Dana Gas' latest financial results showed.
Its realized prices during the quarter averaged $59 per barrel (bbl) for condensates and $39 per barrel of oil equivalent (boe) for liquefied petroleum gas (LPG) compared to $82 per bbl and $43 per boe, respectively, from a year ago.
The energy firm said its group output in the quarter edged up 1% to average 62,900 barrels of oil equivalent per day (boepd), from 62,400 boepd for the same period a year ago.
KRI production grew by 9% to 38,700 boepd from 35,400 boepd in the year-ago period, building on the production capacity increase in the previous quarter after completing the Khor Mor plant de-bottlenecking enhancements.
However, output in Egypt dropped 10% year-over-year to 24,200 boepd in the quarter from 27,000 last year due to natural field declines.
Sharjah-based Dana Gas has already completed drilling five KM250 project wells. The testing of two wells has shown they can produce gas at similar daily rates as the current producing wells.
Regarding cash position, Dana Gas said it has $148 million (AED 542 million) in cash as of March 31, 2023, including $102 million (AED 374 million) held at the Pearl Petroleum joint venture.
