Dana Gas recorded net profit growth of 20 percent in 2012, increasing to $165 million (AED605 million) from $138 million (AED506 million) in 2011, reflecting higher realized oil prices and optimized cost management in 2012. Comprehensive Income, which includes fair value gain on investments, grew to $194 million (AED711 million) representing an increase of 295 percent. In 2012, the Company collected $301 million (AED1.1 billion) from its share of receivables in Egypt and Kurdistan Region of Iraq. The company's cash balance improved by 47 percent to $165 million (AED 605 million) by the end of 2012 compared to $112 million at the end of 2011 (AED 411 million). Total assets at the end of 2012 increased to $3.5 billion (AED12.8 billion). Gross revenues were slightly lower at $636 million (AED2.3 billion) compared to $690 million (AED2.5 billion) in 2011 reflecting the conservative cash policy implemented by the company in Egypt, given the delays in collection of receivables, and also temporary suspension of liquefied petroleum gas production in Kurdistan Region of Iraq following the damage to the LPG loading bay by a third party LPG tanker accident in June 2012. Revenues are expected to increase once new discoveries in Egypt are brought to production and the Kurdistan LPG loading bay is repaired by Q2 of 2013. Dr. Adel Al-Sabeeh, Chairman of the Board of Dana Gas, said: “Despite regional challenges over the past year, Dana Gas has achieved strong profit growth of 20 percent in 2012, as well as strengthening the cash position, and growing our operations, with production growth in the Kurdistan Region and new discoveries in Egypt. This combined with the proposed sukuk refinancing result and the international and regional high growth levels forecast for the natural gas industry, gives us considerable optimism for the company's future, with our attention now firmly focused on how best to realize the value for the shareholders.” In 2012, the company's net production averaged about 60,000 barrels of oil equivalent per day from its interests in the Kurdistan Region of Iraq and in Egypt, where operations remain unaffected by the recent unrest in some other parts of the country. The decrease in Egypt production to an average rate of just over 32,200 barrels of oil equivalent per day is due to the conservative cash policy that Dana Gas has implemented resulting in lower capital expenditure, given the delays in receivables that the company experienced after the recent political changes. Production levels in Egypt are expected to increase as the company develops its three recently announced gas discoveries, and the company is actively engaged in constructive discussions with the Egyptian authorities at high level to address the outstanding receivables in a short a time as possible. — SG
