Dana Gas announced that it has generated a net profit of $31 million during the first nine months of 2020, excluding one-off non-Cash impairments and other income items, according to the company’s press release.
Patrick Allman-Ward, CEO of Dana Gas, said, “The company’s performance has remained consistently strong over the first nine months of 2020 despite the current economic environment. We generated a net operating profit of $31 million, which is testament to our continued, resilient operating performance. We have countered the pandemic by implementing stringent health and safety measures from the outset and production has continued uninterrupted.”
Dana Gas elaborated that its continued operations contributed $29 million to its net profit reflecting the profitability of the remaining business in 2020. The company’s average production during this period reached 63,000 barrels of equivalent per day (boe/d).
Dana gas noted that it exerted wide efforts to preserve operating expenses efficiently earlier in this year reducing general and administrative costs by 18% year on year (YoY).
“We settled all of our Sukuk obligation on schedule and have now further reduced our ongoing financing costs. We also announced the sale of the Company’s mature onshore Egypt producing assets and we look forward to completion early next year, which will allow us to further focus on our core world class assets in the KRI where Dana Gas has over 1 billion boe of 2P reserves and our exciting Block 6 Exploration Concession offshore Egypt that we believe holds more than 20 Tcf of potential gas resources,” Allman added.
Dana gas reported that a total non-cash impairment worth $243 million was taken through the operation assets in Egypt in addition to another impairments reduction of $163 million as non-cash impairment of Goodwill
following the sale of the Company’s onshore assets in Egypt. The company pointed out that this sale process will enable it to focus on developing the growth opportunities in exploration blocks in Egypt and its international assets in the Kurdistan Region of Iraq (KRI).
Additionally, the company recorded revenues worth $262 million during the nine months of 2020 versus $357 in the same period of 2019. It referred this decrease to the lower realized prices during the period and lower production in Egypt as a result of natural field declines.