The decline in production and selling prices reduces the annual profits of the UAE’s Dana Gas by 12%

The profits of the UAE company Dana Gas declined by 12% during the year 2023, due to the decline in selling prices of hydrocarbons, which was partially compensated by the increase in production in the Kurdistan region of Iraq and the decrease in operational costs, according to a statement by the company listed on the Abu Dhabi Securities Market.

The average production of the company, which operates in Egypt and Iraqi Kurdistan, declined by 2% during 2023 to reach 58,700 barrels of oil equivalent per day, compared to 60,200 barrels of oil equivalent per day during 2022.

This is due to a decrease in production in Egypt by 16%, reaching 21,800 barrels of oil equivalent per day, due to the natural decline in field production. However, the company succeeded in compensating for this decline by increasing production in the Kurdistan region of Iraq by 8%, bringing its net production to 36,900 barrels of oil. Equivalent daily.

In Egypt, the company expects to obtain final approval from the Egyptian House of Representatives for the agreement to merge its concession areas during the first quarter of 2024. It is expected that this agreement will contribute to extending the operational life of the company’s assets and support production levels in Egypt. It also includes an additional investment worth up to 100 million dollars.

Richard Hall, CEO of Dana Gas, said: During the last quarter of 2023, our financial position witnessed a noticeable improvement in the payments received from the Kurdistan Region of Iraq, thanks to the new mechanism for receiving receivables directly from power plants, as well as setting a specific schedule for receiving late payments.

He added: With the start of the year 2024, we will continue to work with our government partners in the Kurdistan region of Iraq and Egypt to ensure that payments are received on time.

The company's most prominent financial results in 2023:

Revenues decreased 20% to 1.55 billion dirhams.

The company recorded net profits of 586 million dirhams.

Operating costs decreased by 7% to reach AED 195 million.

The average selling price of a barrel of condensate fell by 35% to $51, and the price of a barrel of oil equivalent of liquefied petroleum gas fell by 17% to $35.