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Dana Gas achieves revenue of Dh581 million in first half

SHARJAH - Dana Gas PJSC, the Middle East's largest regional private sector natural gas company, has announced quarterly results to June 30, 2008, posting revenue from oil and gas production of Dh309 million, a 28 per cent increase over the same period last year.

EBITDA (earnings before interest, depreciation and depletion and income tax), reflecting cash flows from operations for the second quarter of 2008 increased by 76 per cent to Dh164 million compared to Dh93 million in the same period last year. Net profit for the quarter was Dh34 million as compared to Dh29 million in the same period last year, an increase of 17 per cent , after finance charges of Dh67 million, non cash depreciation and depletion of Dh76 million and income tax expense of Dh42 million during the quarter .

Dana Gas oil and gas production in Egypt ended the quarter with a production of 2.51 million barrels of oil equivalent and contributed higher revenues due to better realisations of LPG and condensates.

The company generated total revenue of Dh581 million for the six-month period ended 30 June 2008, with a gross profit of Dh113 million, net profit of Dh59 million and EBITDA for the first half was Dh306 million, an increase of 60 over the same period last year.

"Despite these positive financial results, Dana Gas is just at the beginning of an important phase of rapid growth, said Hamid Jafar, executive chairman of Dana Gas.

"This year is of great significance to Dana Gas, as we build on a healthy financial position, with the start up soon of our major projects in both the UAE and northern Iraq, which will provide a major boost in propelling Dana Gas to the next level and add significant value to our shareholders. In Egypt also we are implementing an extensive drilling campaign which we hope will significantly increase our reserves and production — we have already made two important new discoveries and hope to add to these further by the end of the year," he added.

On Dana Gas major project in the Kurdistan region of Iraq, he said the construction of the 180km pipeline and the first phase processing facilities have now been completed, adding that the project is in the process of testing and commissioning in preparation for first gas production in the coming few weeks.

“We have also been assigned a 461 million square foot site for development of the Kurdistan gas city — the first of its kind and an enormous step forward in our strategy across the Middle East region. We look forward to continued growth and achievements in the second half of 2008 and beyond, with the skills of our staff and the support of our shareholders," he further explained.