Abu Dhabi – Mubasher: Dana Gas on Tuesday said its receivables from the Egyptian government contributed to its profit growth during the first half of 2017.
Dana generated $142 million in free cash flow in the period between January and June from an industry payment of $110 million from the Egyptian government.
“[Dana Gas] has financial commitments of $60 million in Egypt that have accumulated during the last 18 months of drilling activity related to GPEA investment programme that need to be repaid,” Dana said in a statement.
The Sharjah-based gas company said its collections from Egypt and the Kurdistan Region of Iraq (KRI) were strong in H1-17 and were seen at 229% and 115%, respectively.
Dana successfully collected $198 million, “the bulk of which came from Egypt at $135 million,” the statement indicated.
It added that it also collected $55 million and $8 million from the KRI and UAE, respectively.
“Due to the higher collections during [H1-17], the current cash balance, as at 30 June 2017 increased to $337 million, up from $302 million at year-end 2016 and the total trade receivable balance fell to $900 million at the period end as compared to $982 million at the end of December 2016,” Dana highlighted.
Dana Gas Egypt’s production output grew 13% year-on-year in H1-17 to 39,300 Barrels of oil equivalent per day (boepd) versus 34,850 boepd.
Dana’s production also increased by 3% to 37,650 boepd in Q2-17 versus 36,550 boepd in the same period of 2016.
Earlier on Tuesday, Dana Gas reported a 71% year-on-year surge in net profit after tax to $12 million (AED 43 million) in Q2-17, a rise from $7 million (AED 26 million) in Q2-16.
The company’s net profit after tax also jumped 77% to $23 million (AED 83 million) in H1-17, versus $13 million (AED 48 million) in H1-16.
