The UAE-based Dana Gas announced an 85% drop in profit compared to last year, reported Bloomberg.

The company, which is the largest private gas producer in the Middle East, has extensive assets in Egypt and Iraq. However, due to global energy price downturns, net income this year was $6.8m, compared to over $46m a year ago.

Dana Gas has seen an 18% drop in production in Egypt, despite recently drilling the Balsam-2 and Balsam-3 development and appraisal wells, as well as signing agreements with BP to drill an exploration well in the Matariaya Onshore Block 3 Concession.

The company expects these recent projects to translate into increased production and revenue for the next period, Zawya said.

In a prepared statement, Dana Gas CEO Patrick Allman Ward stated, “Despite the steep fall in global oil prices over the past year and events in the region, Dana Gas has remained profitable and strengthened its operations with new investments.”

Ward continued, “We are looking forward to additional production and cash generation in the second half of the year from our new investment program in Egypt which is now under way as well as from our Zora field in the UAE coming on-stream. With our continued cost discipline and this expected increase in production, Dana Gas is well positioned to benefit from any improvements in the oil price in the future.”