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Sharjah, UAE; 22 April 2020: Shareholders of Dana Gas PJSC (the “Company’), the Middle East’s largest regional private sector natural gas company, at the Annual General Meeting held today have approved the Board of Director’s recommendation to distribute an AED 5.5 fils per cash dividend for the financial year ended 31 December 2019.

A feasibility study to separate the Company’s Upstream and Midstream businesses in a demerger was also given the green light by shareholders. This would create two publicly traded companies on the Abu Dhabi Stock Exchange (“ADX”). Under the plan, existing shareholders would own shares in both the Upstream business, which comprises operations in the Kurdistan Region of Iraq and Egypt, and the Midstream business, which will hold the UAE Gas project that is currently awaiting arbitration decision/award.

Hamid Jafar, Chairman of Dana Gas, said:
“This is the Company’s third consecutive dividend and highlights the excellent results from the hard work the Board and management team have delivered over the past several years to strengthen the Company’s financial position that has been reflected in the steady dividend payments. During 2019, we were able to add to production and strengthen our operations, making us more resilient to the difficult global economic environment. The fact that the majority of our natural gas contracts are at fixed prices helps us remain competitive and will allow us to capitalise on any opportunities. I would also like to thank our managements’ efforts on making sure that our employees stay safe and our business is protected from the impact of Covid-19. We are also looking at enhancing shareholder value separating our Upstream and Midstream assets in a demerger. I would like to extend my gratitude to our shareholders for their continued support for the Company and their confidence in the growth potential of Dana Gas.”

The Company posted its highest annual net profit in seven years of $157m (AED 575m) for the 2019 financial year, compared to a net loss of $186m (AED 682m) in FY2018. Net profit from core operations, on a like-for-like basis, esxcluding one-off items increased by 80% to $115 million (AED 422m) compared to $64 million (AED 235m) in 2018. The year-end cash balance was $425m (AED 1,558m) vs $407m (AED 1,492m) at the end of 2018.

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About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 66,200 boepd in 2019. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region.
Visit: www.danagas.com

 

Communication & Investor Relations Contact
Mohammed Mubaideen, Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com

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Sharjah, UAE; 31 March 2020: Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, today announced its intention to pursue a feasibility study studying a potential demerger of its Upstream Business into a new Company, which, as part of the demerger, will also be listed on the Abu Dhabi Stock Exchange (“ADX”).

Currently, the Company owns upstream oil and gas producing assets including Dana Gas Egypt and a 35% stake in Pearl Petroleum, its Kurdistan Region of Iraq E&P focussed business. These assets will be collectively known as the “Upstream Business”.

The Company’s “Midstream Business” will be the UAE Gas Project. This project is currently under arbitration and two separate damages claims are being made in relation to the periods 2005-2014 and 2014-2030.

If the demerger is executed, the existing Shareholders in Dana Gas PJSC will own shares in two separate entities. Both companies would continue to be publicly listed on the ADX.

The Upstream Business and the Midstream Business have quite distinct investment prospects, and the Dana Gas Board believe that there are a number of advantages to be realised by shareholders from structuring these as separate listed businesses, which is the reason the Company is pursuing a feasibility study on the potential demerger. These advantages include:

  1. The Demerger would allow shareholders greater flexibility to manage investment, as may be desired, towards their preferred company entity with different assets, business risks and opportunities;
  2. the Demerger would allow the market to more clearly value each separate business;
  3. as independent groups, the Midstream Business and the Upstream Business would both be able to manage more appropriately the funding of their business strategies, with capital allocation supported by direct access to forms of capital most appropriate to finance growth opportunities; and
  4. following the Demerger, both the Midstream Business and the Upstream Business would benefit from improved allocation of resources, increased focus and greater flexibility in strategic and operational execution.

A resolution to allow the Board of Directors of the Company to carry out a feasibility study into the Demerger has been included on the AGM invitation published yesterday, 30 March 2020. If the feasibility study authorization is approved by the AGM, then once concluded and the required approvals have been obtained from the competent authorities, including the Securities and Commodities Authority, the Demerger will be presented again to the General Assembly for approval.

Hamid Jafar, Chairman of Dana Gas said:

“We are studying the feasibility of a demerger as we believe it could be value accretive for our shareholders. Our Upstream Business has grown considerably over the last 13 years and will continue to deliver growth in the years to come. A pure-play upstream company may attract significant new investment both locally and internationally linked to future production growth. A pure-play midstream business would be more stable and have less exposure to commodity price changes. The demerger would provide the option to shareholders to remain invested in either or both companies at their discretion, each company having its own business strategy and opportunities.”

 

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About Dana Gas

Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 66,200 boepd in 2019. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region.

Visit: www.danagas.com

 

Communication & Investor Relations Contact
Mohammed Mubaideen, Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com

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Sharjah, UAE; 12 March 2020: The Board of Directors of Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, will recommend to shareholders at the Annual General Meeting on 14 April 2020 the distribution of an AED 5.5 fils per share cash dividend for the financial year ended 31 December 2019.

For the FY2019, the Company posted its highest annual net profit in seven years of $157m (AED 575m) as compared to a net loss of $186m (AED 682m) in FY2018. Net Profit from core operations, on a like-for-like basis, excluding one off items increased by 80% to $115 million (AED 422m) compared to $64 million (AED 235m) in 2018. The year-end cash balance is $425m (AED 1,558m) vs $407m (AED 1,492m).

Patrick Allman-Ward, CEO, Dana Gas, said:

“This is our third consecutive year where we have delivered positive operational and financial results. 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. This has led to the Board making a recommendation to distribute a cash dividend of 5.5 fils/share for the financial year ended 31 December 2019 subject to the approval at the Annual General Meeting”.

The Company continues to see strong operational performance in the first two months of 2020 and its long-term growth plans remain unaffected by the coronavirus. Precautionary measures and contingency plans have already been put in place to safeguard personnel and assets

Operations & Production

Group production rose 5% during 2019, averaging 66,200 boepd versus 63,050 boepd in 2018. Production was boosted by an 18% jump in output from the KRI, which reached 31,500 boepd. This offset drops in production from Egypt, which fell 4% to 33,000 boepd versus 34,500 boepd in 2018, and the UAE, which averaged 1,000 boepd in 2019.
The Company recently announced the appointment of an engineering, procurement and construction (‘EPC’) contractor for the first of two 250 MMscf/d gas processing trains planned at the Khor Mor gas processing plant in the Kurdistan Region of Iraq (‘KRI’). The appointed contractor has already begun work. The long-term expansion plan will boost gas and condensate production to 650 MMscf/d from its current 400 MMscf/d output by Q1 2022 and the second train will be ready by end of 2023, taking production output to 900 MMscf/d. With the price of oil ranging between $50 to $70 per barrel, each of these two new gas production trains will generate between $150 to $200 million to the Company’s share of revenue and project’s cash flows per annum.

The Company 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.

Arbitration

The Company, together with Crescent Petroleum, commenced arbitration proceedings against MOL Hungarian Oil and Gas Public Limited Company (‘MOL’) on 14 February 2020 arising out of MOL’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 MOL acquired their 10% shareholding in Pearl Petroleum. The arbitration will also address the separate and additional crude oil earn out payments arising out of the 2009 Sale and Purchase agreement.

The reserve based earn out payment obligations are the same obligations which MOL sought to illegitimately avoid leading to the 20 September 2017 arbitration against MOL. On 14 May 2019, the Tribunal dismissed all of MOL’s claim, ruling in favour of Dana Gas and Crescent Petroleum.

Furthermore, the Company together with Crescent Petroleum, has commenced arbitration proceedings against OMV Upstream International GMBH (‘OMV’) on 14 February 2020 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% shareholding in Pearl Petroleum.

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About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 66,200 boepd in 2019. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region.
Visit: www.danagas.com

Communication & Investor Relations Contact
Mohammed Mubaideen, Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com

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Sharjah, UAE; 9 March 2020: Currently, natural gas constitutes 75% of the Company’s production which is sold under long term gas sale contracts with host Governments at prices which are unaffected by falling oil prices. These gas sales account for approximately half of the Company’s income, leading to sustainable revenues even in low oil price environments.

Patrick Allman-Ward, CEO of Dana Gas said: “Since half of our income is protected in low oil price environments, we are competitive and opportunistic at the current environment. We are obviously monitoring the market closely and responding accordingly. The Company already has an excellent track record of cost control and we will obviously be looking at identifying potential areas for further cost reductions should the low oil price environment persist. In the meantime, the Company will continue implementation of its planned projects in the KRI which will lead to significant growth in both production and revenues in the years to come.”

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About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 66,200 boepd in 2019. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region.
Visit: www.danagas.com

Communication & Investor Relations Contact
Mohammed Mubaideen, Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com

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Sharjah, UAE; 2 March 2020: Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, today issued a trading update to shareholders.

Dana Gas’s growth plan and operations remain unaffected by the coronavirus. Precautionary measures and contingency plans have already been put in place to safeguard personal and assets. The Company has robust operations and cash flows since a large part of the Company’s revenue comes from long term gas contracts rather than oil, whose price is largely uncorrelated to oil. This represents a natural hedge against low oil prices.

For the FY2019, the Company posted its highest annual net profit in seven years of $157m (AED 575m) as compared to a net loss of $186m (AED 682m) in FY2018. The cash balance is $425m (AED 1,558m) vs $407m (AED 1,495m). Group average production was 66,200 boepd vs 63,050 boepd, a 5% increase, led by an 18% rise in KRI output.

Patrick Allman-Ward, Chief Executive Officer, Dana Gas, said:
“The first two months of trading in 2020 has been robust despite the current unpredictable economic environment resulting from the coronavirus. We have appointed an EPC contractor, who will start immediately on building the first of Pearl Petroleum’s two gas processing trains in the KRI. This will see production output increase 60% to 650 MMscf/d when it comes online in Q1 2022. Our cash position remains strong at $425 million and the Board is expected to propose the payment of a dividend to the AGM for the full year 2019.”

The Company has appointed an engineering, procurement and construction (‘EPC’) contractor for the first of two 250 MMscf/d gas processing trains planned at the Khor Mor gas processing plant in the Kurdistan Region of Iraq (‘KRI’). The appointment of a contractor follows final approval by the Ministry of Natural Resources of the Kurdistan Regional Government, which oversees the project.

The contract award marks a key milestone in Pearl Petroleum’s long-term expansion plan. Production in the KRI has already increased by 18% to 31,500 boepd in 2019 as a result of the successful debottlenecking project that took place in Q4 2018. This added $40 million to the Company’s revenues in 2019. The implementation of the first 250 MMscf/d gas processing train will be carried out immediately and first gas is expected by Q1 2022. The second phase will take total production to 900 MMscf/d by the end of 2023.

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About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 66,200 boepd in 2019. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region.
Visit: www.danagas.com

Communication & Investor Relations Contact
Mohammed Mubaideen, Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com

80% increase Y-o-Y in Net Profit from core operations 

 Highlights

  • FY 2019 Net Profit of $157 million (AED 575m) vs a Net Loss of $186million (AED 682m) in 2018
  • Highest annual profit in 7 years
  • Production up 5% to 66,200 boepd vs 63,050 boepd in 2018
  • KRI production increases 18%; adding $40 million in revenues as a result of the debottlenecking project
  • Year-end cash balance of $425 million (AED 1,558m)

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Sharjah, UAE; 12 February 2020: Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, today announced its Preliminary Unaudited Financial Results for the full year ended 31 December 2019.

The Company reported a Net Profit of $157 million (AED 575m) in 2019 compared to a loss of $186 million (AED 682m) in 2018. Net Profit from core operations, on a like-for-like basis, excluding one off impairment, earnout and deferred income, increased by 80% to $115 million (AED 422m) compared to $64 million (AED 235m) in 2018.

The increase in profitability in 2019 was supported by a significant increase in production from the KRI, which added $40 million which helped offset partly the impact of lower prices. In addition, during the year, the Company recognised earn out and deferred income entitlements which contributed positively to the bottom line.

Revenue was $459 million (AED 1.68bn) in 2019 compared to $470 million (AED 1.72bn) in 2018 due to lower realised prices and lower production in Egypt partly offset by increase in production in KRI.

Following these results, the Company’s book value per share stands at AED 1.38 as of year-end 2019.

Dr Patrick Allman-Ward, CEO of Dana Gas, said:

“Dana Gas registered strong performance metrics in 2019 underscoring its increasing financial resilience in what has been a challenging year for the oil industry. Net profit from our normal operations nearly doubled to $115 million, supported by an increase in production from the Kurdistan Region of Iraq despite the drop in realised prices. The strong set of results are supportive of a dividend payment, subject to necessary approvals.”

“Looking ahead, the company’s expansion plan in the KRI is on schedule, with delivery from the first gas train expected in 2022. This will raise production to 650 MMscf/d from the current rate of circa 400 MMscf/d. Over 90% of Dana Gas’s proven reserves are located in the KRI, so we will continue our focus here as we look to delivering on this vast potential.”

Operations & Production

In H2 2019, the Company launched a strategic review of its assets in Egypt as part of a process to optimise its portfolio. The Company has since received numerous bids and is finalising the technical and commercial evaluation, with a final decision due by the end of March. Other developments that took place in 2019 included the drilling of the deep-water Merak-1 well, Block 6, in Q2 2019, on schedule and under budget. The well, unfortunately, did not encounter commercial hydrocarbons. The Block remains highly prospective with three other material prospects identified and earmarked for drilling.

In the KRI, Pearl Petroleum embarked and completed two appraisal wells and 6 workovers in Khor Mor and one appraisal well in Chemchemal. Pearl has also been progressing with its expansion plans in Khor Mor which will take production up to 650 MMscf/d in Q1 2022, and 900 MMscf/d in 2023.

Group production rose 5% during 2019, averaging 66,200 boepd versus 63,050 boepd in 2018. Production was boosted by an 18% jump in output from the KRI, which reached 31,500 boepd. This offset drops in production from Egypt, which fell 4% to 33,000 boepd versus 34,500 boepd in 2018, and the UAE, which averaged 1,000 boepd in 2019.

Liquidity and Collections

The Company’s cash balance at year-end stood at $425 million, a 4% increase from $407 million at the end of 2018.

The Group collected a total of $285 million in 2019(2018: $334m) with Egypt, KRI and UAE contributing $138 million (2018: $208m); $139 million (2018: $114m) and $8 million (2018: $12m) respectively.

In KRI, regular payments have been received, and there are no outstanding receivables as of year-end.

In Egypt, the Company successfully reduced its receivables to $111 million (AED 407m). This represents a 21% reduction compared to 2018 year-end balance of $140 million (AED 513 million).

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About Dana Gas

Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 66,200 boepd in 2019. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit:  www.danagas.com

Communication & Investor Relations Contact
Mohammed Mubaideen, Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com