Dana Gas shares fell by four per cent yesterday after the company reported a 32 per cent fall in net income in the first quarter. The company was also not among this week’s UAE additions to MSCI global benchmarks.
The latest net profit for Dana Gas, which is based in Sharjah, fell to Dh164m. The year-earlier figure of Dh241m included a one off-gain of US$39 million on the partial sale of Hungary’s MOL Investments.
While the latest profit was ahead of analysts’ expectations, the company’s shares closed down four fils at 87 fils a piece yesterday.
Disappointment at the company’s non-inclusion with MSCI was partly responsible for the dip, according to Sanyalak Manibhandu, the research manager at NBAD Securities.
No energy company was among the nine stocks selected by MSCI.
Dana Gas recorded a 18 per cent rise in quarterly revenues, attributable to a 12 per cent rise in average production.
Dana Gas Egypt increased average production by 17 per cent, to 39,100 barrels of oil equivalent per day, compared with 33,400 achieved a year ago.
In the Kurdish region of Iraq, the company’s share of production was also higher by 6 per cent.
Dana’s total receivables grew to Dh2.14 billion at the end of March, compared with Dh1.89bn at the end of last year.
“We are committed to further increasing production in Egypt and continue our discussions with the relevant authorities to resolve the matter of overdue receivables,” said Dana’s chief executive, Patrick Allman-Ward.
“The arbitration initiated by us and our consortium partners [regarding the Kurdish region of Iraq] commenced in January 2014 with the successful formation of the tribunal and proceedings are now ongoing.”
jeverington@thenational.ae
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