Dana Gas net profit dips 45% in Q2

DUBAI: Dana Gas, the United Arab Emirates energy firm that restructured a $920 million Islamic bond in April, said on Sunday that its second-quarter net profit fell sharply due to lower oil prices and sales of liquefied petroleum gas.
Dana reported a net profit of 100 million dirhams ($27.2 million), the company said in an emailed statement, a drop of 45 percent over the prior-year period.
"The main reason is the LPG production in Kurdistan as well as oil prices," Rashid Al-Jarwan, acting CEO of Dana, said on a conference call with reporters on Sunday.
He added that Dana's LPG loading and dispatch facilities in Kurdistan were disrupted following an accident last year, and that the company took a $12 million loss in LPG revenues in the second quarter.
Total revenues for the second quarter were 528 million dirhams, down from 554 million dirhams in the same period in 2012.
Dana said its average overall production volume was up 5 percent to 61,700 barrels of oil equivalent per day in the second quarter.
Instability in Egypt remains a concern; Dana collected 203 million dirhams against its receivables in Egypt during the first half of 2013, compared with 431 million dirhams in the first six months of 2012.
But the company remained optimistic.
"In Egypt, with changes and commitments from the GCC countries, there's growing confidence in things improving. They are aware of the slowdown in investments and there's recognition of the need to step up production overall," Al-Jarwan said.