Dana Gas posts net loss of $186mn for 2018
Impairment costs caused the company to see a net loss in 2018 despite higher revenue and gross profit figures
Dana Gas has posted a net loss of $186mn for the year ending December 2018, despite seeing 19% growth in gross profit to $140mn, up from $118mn. The company posted a net profit of $83mn in 2017.
This is due to impairment costs which "follow the annual year end oil and gas reserves valuation of its Zora field in the UAE and its fields in Egypt, and which required the Company to take an exceptional one-off non-cash impairment of $187 million (AED685 mm) for Zora and $59 million (AED216 mm) in Egypt," the company wrote in a press release.
“2018 was a year of strong operational performance for Dana Gas," said Dr. Patrick Allman-Ward, CEO of Dana Gas. "We delivered, a 30% increase in gas production from the KRI debottlenecking project which will increase revenues by $50 million on an annualised basis, we made large saving from restructuring the Sukuk, we achieved higher collections and the Company paid its first dividend.
Both our Revenue and Gross Profit were higher than last year and Net Profit also increased excluding a one off non cash impairment. With a robust cash balance and stronger balance sheet, we plan to pay an increased dividend of 5.5 fils in 2019.
We are proceeding with our exciting further expansion plans in the KRI and are looking to more than double our production and cash flows in the next three years."