UAE's Dana Gas 2012 net profit rises 20 pct

Reuters, Sunday 3 Feb 2013

The Abu Dhabi based firm reports a net profit of $165 million in 2012

Dana Gas, the Abu Dhabi-listed energy firm which defaulted on an Islamic bond, said on Sunday its full-year net profit for 2012 rose 20 per cent on the back of higher oil prices and lower costs.

Dana's 2012 net profit rose to $165 million from the $138 million it posted in 2011, the company said in a statement.

The company, hit by delays on payments for its supplies of natural gas toEgypt and Iraq's Kurdistan region, reached an agreement with creditors in December to amend terms of a $920 million Islamic bond, which it had failed to pay at maturity in October.

"With the agreement with the sukuk-holders announced, the focus now is on receivables collection, boosting the management team, and realising the value of the assets through an international listing," Crescent Chief Executive Majid Jafar, who is also a board member of Dana, told Reuters by phone.

Dana, in which Crescent Petroleum has a 20 per cent stake, said it collected $301 million from its share of receivables in Egypt and Kurdistan region of Iraq in 2012.

The company's cash balance rose by 47 per cent to $165 million by the end of last year, while total assets reached $3.5 billion at the end of Dec.

Dana Gas, which has operations in the UAE, Egypt and Kurdistan, made quarterly profit of 114 million dirhams, according to Reuters calculations. It had profit of 147 million dirhams in the year-ago period.

"We are now preparing to develop our three recent discoveries in Egypt and the Zora offshore gas field in the UAE. These projects will enable us to boost the growth that our operations have achieved consistently over the past seven years," said Rashid Al-Jarwan, executive director and acting chief executive officer of Dana Gas.

Dana shares now trade up 2 per cent at 0.5 dirhams.

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