Dana Gas board recommends Dh5.5 fils per share dividend for 2019
Long-term growth plans remain unaffected by the coronavirus, the company says
The board of Sharjah-based Dana Gas recommended the distribution of a Dh5.5 fils per share cash dividend for the financial year ending December 31, 2019.
The payout is pending shareholders' approval at the company’s annual general meeting, which is scheduled for April 14, Dana Gas said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares trade.
Last month Dana Gas reported an annual net profit of Dh575 million for 2019 compared with a net loss of Dh682m in the previous year, on higher production from the Kurdistan Region of Iraq (KRI), where the company has gas assets. Dana Gas's profitability also received a boost as provisions for impairments declined and earnings from Kurdistan and Egypt offset the fluctuation in oil prices.
“This is our third consecutive year where we have delivered positive operational and financial results,” said Patrick Allman-Ward, chief executive of Dana Gas.
“Throughout 2019, we have added to our production and strengthened our operations, making us more resilient to the tough trading conditions the oil industry is facing currently. Since half of Dana Gas’ income is protected in low oil price environments, we are competitive and opportunistic at the current environment.”
In 2019, oil production rose 5 per cent year-on-year to average 66,200 barrels of oil equivalent per day (boepd) with production from KRI jumping 18 per cent. Production in Egypt fell 4 per cent to 33,000 boepd and the UAE output averaged 1,000 boepd.
The company said it “is continuing with its strategic review of its Egyptian assets and has been encouraged by the level of interest that it has received to date”.
Dana Gas, along with Crescent Petroleum, also commenced arbitration proceedings against Hungary’s MOL Group on February 14 related to a dispute over payments.
Separately, the company together with Crescent Petroleum also started arbitration proceedings against OMV Upstream International. This is “arising out of OMV’s attempts to avoid paying reserve based earn out payments to the company and Crescent Petroleum arising out of the terms of the sale and purchase agreement entered into between the Parties in 2009, through which OMV acquired their 10 per cent shareholding in Pearl Petroleum", Dana Gas said.
Updated: March 12, 2020 11:24 AM