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Abu Dhabi, UAESaturday 15 December 2018

Dana Gas 3Q profit drops 83% in absence of one-off gains from 2017

Net profit attributable the shareholders of the company for three months to the end of September fell to $17 million

Despite quarterly slide, nine-month profit rose - excluding one-off gains. Jaime Puebla / The National
Despite quarterly slide, nine-month profit rose - excluding one-off gains. Jaime Puebla / The National

Dana Gas, the Sharjah energy company, posted an 83 per cent drop in its third-quarter net profit, after one-off income from settlements and interest on receivables in the corresponding period of 2017 were not repeated.

Net profit attributable the shareholders of the company for three months to the end of September fell to $17 million (Dh61m), the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

However, excluding entitlement adjustments following settlement with the Kurdistan Regional Government and interest on overdue receivables due from the KRG, the company’s net profit rose 183 per cent from $6m reported at the end of the third quarter of 2017, it added.

The company made entitlement adjustments of $114m last year following settlement with KRG and also received $17m in interest from the government of autonomous region in Iraq on overdue receivables.

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Dana Gas swung to a profit for the first nine months of the year excluding the one-off income for the same period last year. Net profit for nine-month period came in at $41m compared to a net loss of $6m in 2017, it said.

“Our robust financial results for nine months again reflects excellent performance,” Patrick Allman-Ward, chief executive of Dana Gas, said. “We are celebrating our 10th anniversary of operations in [the] country [Kurdistan] and the successful execution of the de-bottlenecking project that is targeting a 25 per cent boost to output.”

The company, he said, has a 10-year gas sales agreement with the KRG to supply and sell additional quantities of gas into the local market for power generation, which will further provide affordable and clean energy to underpin the region’s economic growth and additional revenues for Dana Gas.