Dana Gas reports 2Q19 results, with net profit of USD105mn
Dana Gas Co. released its 2Q19 financial results, reporting net profit of USD105mn (vs. USD10mn in 2Q18). Operationally, top-line increased c6% to reach USD123mn as compared to USD116mn in 2Q18, and at the production level, the group also recorded a c7% increase in average production to reach 68,200 boepd in 1H19, vs. 63,600 boepd in 1H18. It is worth noting that Dana Gas has completed drilling on Egypt’s onshore Merak-1 well, located in North El Arish (block 6) concession in Jul 2019 and did not spot any commercial hydrocarbons in the well. Dana Gas’ hike in earnings Y-o-Y was mainly attributable to: i) a significant increase in KRI’s production to reach 32,400boepd in 1H19 compared to 26,100boepd in 1H18, which has offset the c4% lower production from Egypt; and ii) the recognition at fair value of certain reserve-based earnout entitlements amounting to USD71mn.