SHARJAH, United Arab Emirates, Feb. 15 (UPI) -- Emirati energy company Dana Gas bucked industry trends by posting an increase in net profits on the back of strong performance in Egypt and legal settlements.
"Despite the challenging business environment with the fall in oil prices, Dana Gas is pleased to report healthy financial results including higher net profit," Dana Gas Chief Executive Officer Patrick Allman-Ward said in a statement.
The company recorded a net profit of $144 million for the fourth quarter, up 15 percent year-on-year. Dana's year-end cash balance was $470 million, up from the $184 million reported at the end of 2014.
The company's cash and bank balance more than doubled because of a settlement last year with German energy company RWE over stakes held in the Kurdish north of Iraq.
Dana last year reached an "amicable and mutually beneficial" deal with RWE after claims of a breach of confidentiality. As part of the settlement, RWE's subsidiary in the Middle East joins the consortium, Pearl Petroleum, as a partner with a 10 percent stake in Kurdish developments.
Later, an international court of arbitration called on the Kurdistan Regional Government to pay Dana and its consortium partners nearly $2 billion for disputes over the development rights to the two oil fields in the Kurdish north of Iraq.
The company, meanwhile, said it received $125 million from the Egyptian government, an improvement of 5 percent from the previous year.
In terms of reserves, the company said it was further supported by operations in Egypt, where proved reserves increased 41 percent.
Dana offered no indication of future spending out output, but said spending last year of $234 million marked a 92 percent increase from 2014. The company's CEO suggested a pullback was in store for the year, however.
"Together with our overall reduced spending levels and healthy cash position this means that Dana Gas is well positioned to face the challenges of the current lower oil price environment and is prepared for the future upturn," he said.