April 23, 2022

Dana Gas shareholders approve $86m H2 cash dividend

categories : oil and gas

Dana Gas shareholders have approved to distribute AED315 million ($86 million) or 4.5 fils per share cash dividend for the second half of the financial year ended December 31, 2021, making it high-yielding company in the UAE.

The payment will bring the total dividend for the financial year ended December 31, 2021 to AED560 million ($153 million) or 8 fils per share, a 45% increase compared to the dividend for 2020.

The shareholders’ approval came on the Board of Director's recommendation at the company's Annual General Assembly to hand out the dividend at the Middle East's largest regional private sector natural gas company.

Strong operational and financial performance

This reflects the company’s strong operational and financial performance during the year, and makes Dana Gas one of the highest-yielding listed companies in the UAE.

In their meeting shareholders approved a new dividend policy that allows for interim dividend payments.

Hamid Jafar, Chairman of Dana Gas, said: “Dana Gas’ 2021 performance with strong financial results and increased dividend payments to its shareholders are testaments to the company’s careful management of costs and continued operational excellence against a backdrop of higher global energy prices. Through 2022 we will continue to focus on our long-term growth strategy and anticipate positive financial results in an environment of continued high energy prices.”

Dana posts net profits of $317m for 2021

For the full year 2021, the company had posted a net profit of AED1.2 billion ($317 million) or 14.5 fils per share as compared to a net loss of AED1.4 billion ($376 million) in 2020, and on an adjusted basis, it posted a net profit of AED469 million ($128 million) when one-off non-cash impairments and other income are excluded.

Production output from the Kurdistan Region of Iraq (KRI) reached 33,800 boepd in 2021, a 5% increase on 2020, and helped offset a drop in production from Egypt as a result of natural field depletion. Sales gas production from KRI operations reached a record 452 million cubic feet of gas per day (mmscfd), marking a significant milestone and 50% increase in KRI production since 2018.

Progress continues with the KM250 gas expansion project in the Kurdistan Region of Iraq (KRI). Construction works at the Khor Mor field are moving ahead on schedule, and remains on track to deliver the first 250 mmscfd gas processing train in Q2 2023, which would increase gas production from 450 mmscfd to 700 mmscfd.

After completion of the KM250 project, the partners also plan a further KM500 train that would raise production to almost 1 billion cubic feet per day to meet rising demand for cleaner and cost-effective natural gas to fuel electricity generation in throughout 2022 the KRI for the benefit of the region and all of Iraq.

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