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UPDATE 1-Dana Gas posts $8.9 mln Q2 profit as output rises

Published 08/11/2010, 02:24 AM
Updated 08/11/2010, 02:28 AM

* Co posts 33 million dirhams net profit in Q2

* Profit excludes an unrealized loss of 213 million dirhams

* Current cash position $175 million

* Results below average analysts forecasts

By Amena Bakr

DUBAI, Aug 11 (Reuters) - UAE-based Dana Gas posted a net profit of 33 million dirhams ($8.98 million) in the second quarter, as its Egypt and Kurdistan operations delivered high output, but the results fell short of analysts estimates.

Four analysts on average had expected Dana to post a net profit of 36.3 million dirhams for the second quarter according to a Reuters poll.

Dana's second-quarter net profit excluded an unrealized loss of 213 million dirhams for its investment in Hungary's MOL oil and gas firm.

"There was a loss because Hungary's stock exchange was impacted by the Greek crisis and weakness of the euro and dollar," said Chief Financial Officer Jim Dewar in an interview on Wednesday.

Dana's Egypt operations produced 3.8 million barrels of oil equivalent (boe) during the quarter, a 19 percent increase compared to the same period last year, the statement said.

"Our operations in Egypt and Kurdistan have delivered a good increase in production, while prices of gas remained strong," Dewar said.

Dana posted a net profit 392 million dirhams in the second quarter of 2009 mainly due to the sale of a 10 percent stake in Pearl Petroleum in Kurdistan.

In the Kurdistan Region of Iraq, Dana Gas produced 1.06 million boe of gas and condensate during the quarter, an increase of about 88 percent over the same period in 2009, the statement said.

Dana expects the first train of the liquefied petroleum gas (LPG) Plant at Khor Mor field to start later this year, said Dewar.

"This year we will focus on developing our existing assets Egypt, Kurdistan and the UAE," he said.

Last year, Dana said it was part of a UAE and European consortium that includes Austria's OMV and Hungary's MOL planning to pump enough gas from Iraq's Kurdistan region to kick-start the estimated $10 billion Nabucco pipeline project to supply Europe.

Asked about the company's cash position, Dewar said it was $175 million, while a final decision on the farm out of 20-30 percent of its Egypt assets will be made by the firm's board members by the end of the third quarter this year or middle of the fourth quarter.

Dana Gas reported profit of 33 million dirhams during the first quarter of 2010 due to higher oil and gas output and rising energy prices. (Reporting by Amena Bakr; Editing by Jon Loades-Carter)

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