Dana Gas turns profitability at $317 million in 2021

Dana Gas turned profitable during the year 2021, with a net profit of 1.16 billion dirhams (317 million dollars), compared to losses of about 1.38 billion dirhams (376 million dollars) in 2020.

According to Arabiya Net, the company said in a statement that the shift to profitability is due to the rise in oil prices, the improvement in operational performance and the increase in other revenues, which include $608 million, the value of the overpayment due after the arbitration decision.

The company was positively affected by the restriction of an amount of about $608 million related to obtaining a judgment in its favour from the International Arbitration Tribunal regarding the supply of gas with the National Iranian Oil Company, and the judgment covers the period from 2005 to 2014. 2014 to 2030.

The company indicated an increase in provisions for impairment of assets in the UAE and a decrease in the value of goodwill by about 12%, to reach $451 million in 2021.

Dana Gas stated that the adjusted net profit for the year, excluding other income and impairment, is $128 million in 2021, compared to $36 million in 2020, an increase of 256%, which reflects strong operational performance.

Dana Gas’s share of the collections in the Kurdistan region of Iraq amounted to $184 million, representing 98% of the year’s revenues. At the end of the year, the balance of trade receivables amounted to $43 million (Dana Gas’s share).

In Egypt, the company obtained $193 million during 2021, thus achieving 186% of the 2021 bills, and at the end of the year, the balance of trade receivables decreased by 82% to reach $24 million from $130 million at the end of 2020.

The company ended the year with a production rate of 62.1 thousand barrels of oil equivalent per day, a decrease of 2% compared to the production rate of 63.2 thousand barrels of oil equivalent per day.

Dana Gas attributed the decrease in production mainly to the decrease in production in Egypt by 7%, which was partially offset by an increase in production in the Kurdistan region of Iraq.