Dana Gas 1Q2016 net profit dropped 50% Y-o-Y to AED22 million, as revenue declined 29% Y-o-Y due to i) a sharp decline in hydrocarbon prices; and ii) lower production in Egypt and Kurdistan. The realised prices for Dana during the period averaged USD30/bbl for condensate and USD29/boe for LPG compared to USD51/bbl and USD41/boe, respectively, in 1Q2015. Production in Egypt and Kurdistan was lower 12% and 16%, respectively. The decrease in production in Kurdistan was mainly due to reduced stake in PPCL to 35% from 40%, following the disposal of 5% interest in PPCL in November 2015 to RWEST. Gross margin was down at 39% versus 50% in 1Q2015 due to a sharp decline in liquid prices. The company said that it continues to monitor its capital position to ensure optimal capital structure. Optimisation measures include the company seeking to buyback outstanding sukuk from time to time. The company will consider an incremental buyback through open market purchases. (Company disclosure, Bloomberg)