Dana Gas posted a fourth quarter loss of Dh193 million ($52.54 million), its second consecutive loss, after 2009 accounting write-offs and the impairment of some oil and gas assets.

The Abu Dhabi-listed firm however said it would pursue targeted acquisitions.

Dana's full-year 2009 net profit fell to Dh88 million from Dh120 million in 2008, for a net loss of Dh193 million in the quarter, according to Reuters calculations.

The quarterly result falls far short of expectations set by a Reuters poll of three analysts who on average predicted a profit of Dh30 million.

"The decline in net profit was mainly due to exploration writeoffs [in 2009] plus the impairment of certain oil and gas assets," Dana said in a statement.

Comprehensive income for the year rose to Dh458 million compared to Dh120 million one year earlier.

The Gulf's only listed natural gas company said the results exclude an unrealised gain of Dh370 million recorded for its investment in Hungary's MOL oil and gas firm, which was booked directly to equity.

In May, 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.

"The Dana Gas Group continues to maximise the value of its existing oil and gas assets and projects, while pursuing growth through a strategy of targeted acquisitions and new business development across the gas value chain," the company said.

Dana Gas shares have fallen 3 per cent so far in 2010 after a 59 per cent rise in 2009.

Targeting 20pc boost in Egypt output

Meanwhile, the Egyptian unit of the UAE's Dana Gas is targeting a boost of about 20 per cent in oil and gas output this year, the unit's president said.

"That's an ambitious plan, but that could be done this year," Hany Elsharkawi told Reuters on the sidelines of an energy event in Abu Dhabi.

The unit's spending in 2010 would be more than last year's $170 million, Elsharwaki said.

Dana Gas Egypt pumped around 41,000 barrels of oil equivalent per day (boepd) in 2009 and was looking for an increase of around 8,000 boepd in 2010, he said.

It pumped around 40,000 boepd from operations in the north of the country and around 1,100 bpd from the south.

In the north, gas processing units limited output capacity, while in the south there were no pipelines to pump the oil out.

Dana was transporting the oil on trucks to a refinery around 400 kilometres away, he said.

In the south, a private investor was looking at building a small refinery with capacity of 2,500 bpd, he said. He declined to give more details on who was planning the refinery.

If that refinery were built, Dana could boost oil output in the south to 3,000 bpd, he said.

The company planned to drill 15-18 exploration and development wells in Egypt this year, he said.

Dana Gas posted a fourth quarter loss of Dh193 million ($52.54 million), its second consecutive loss, after 2009 accounting write-offs and the impairment of some oil and gas assets.

Dana Gas is based in the northern emirate of Sharjah, one of the seven members of the UAE. – Reuters