Dana Gas reports net profit of Dh506m

Dana Gas posted higher fourth-quarter and yearly profits on Monday, largely due to an increase in production and higher oil prices. The company, which faces a $1 billion sukuk maturity in October, made a full-year net profit of Dh506 million, up from Dh158 million in 2010. Shares in Dana Gas were up 2.7 per cent to Dh0.38 at 11:24pm UAE time on the Abu Dhabi Securities Exchange (ADX), having dropped 42 per cent in the past year on concerns over the company's ability to meet its debt obligations. "For Dana Gas, 2011 was a year of successful operational growth against a backdrop of unprecedented regional political turmoil. The consequences of the so-called ‘Arab Spring' are presenting the oil and gas industry with considerable challenges in the short term, and Dana Gas is not immune to these," said Hamid Jafar, chairman of Dana Gas. "However, we enjoy amicable and cooperative relationships with our host governments in the UAE, Egypt and the Kurdistan region of Iraq," he added. Gross revenue increased 42 per cent to Dh2.53 billion, while net cash generated from operations was Dh357 million. Dana said net cash generated from operations was Dh357 million, adding that in 2011 the group collected Dh649 million from its share of receivables in Egypt and Kurdistan. Average production grew 19 per cent to 66,200 barrels of oil equivalent a day last year, according to a statement posted on the ADX. Dana also made a quarterly profit of Dh147 million, according to Reuters calculations against a profit of Dh59 million in the year-ago period.