Dana Gas Egypt’s operational cash flow jumped by 175% in 1H 2021, reaching $80 million, the company said in a statement.
The company attributed the hike in the cash flow to the oil price increase as well as the higher collection during H1 2021. According to the statement this hike also “reinforces the correctness of the Board decision not to sell the assets.”
In April 2021, Dana Gas terminated its agreement for the sale of its Egyptian assets and will therefore continue to own and operate them in order to maximize returns for its shareholders.
“In Egypt, we are going to continue to operate our onshore producing assets in a way to maximize value for the benefit of all our stakeholders and to prepare to drill our material offshore exploration well as soon as practicably possible,” Patrick Allman-Ward, CEO of Dana Gas, stated.
Meanwhile, the company’s overall operational cash flow increased by 97%, recording $146 million.
The Company’s average production in H1 2021 was 64,000 boepd, slightly higher than 63,250 in H1 2020, driven by increased production in the KRI (Kurdistan Region, Iraq).
Allman-Ward noted: “The company has delivered a very strong set of results for the first half of 2021 as a result of our robust financial and operational performance supported by the rebound in oil prices.”
“Our revenues grew by 19% in the first six months which, coupled with our low-cost structure, has helped the Company increase gross profits by 133% and generate a net profit of $139mm. Our collections in both Egypt and the KRI have significantly improved, adding to our liquidity and overall financial strength,” he added.