Highlights – 9M 2022
- Net profit increased 64% to AED 589 million ($161mm) versus AED 360 million ($98mm) on a like for like basis
- 9M Gross revenue increased 24% year on year to AED 1,521 million ($415mm)
- 9M EBITDA increased 34% year on year to AED 880 million ($240mm)
- 11% increase in production Capacity in the KRI
- Distributed 4.5 per share dividend for H1 2022 in October
Sharjah, UAE; 9 November 2022: Dana Gas PJSC (the “Company”), the Middle East’s largest regional private sector natural gas company, today announced its financial results for the nine months ended 30 September 2022.
For the first nine months of the year, the Company generated a net profit of AED 589 million ($161mm) or 8.4 fils per share, a 64% increase compared to an adjusted net profit (excluding the other income and impairments) of AED 358 million ($98 mm) in 9M 2021.
The gains in Dana Gas’s profitability in the first nine months of the year were driven by higher realized prices, prudent cost control and strong operational performance in the Kurdistan Region of Iraq (KRI).
The Company’s 9M revenues increased 24% year on year to AED 1,521 million ($415 million) compared to AED 1,224 ($334 million) in 9M 2021 whilst operating costs declined by 7%.
The Company’s realized prices for the first nine months averaged $85/bbl for condensate and $43/boe for LPG compared to $51/bbl and $34/boe respectively in 9M 2021.
In the first nine months, production in the KRI increased 1% and at the beginning of the fourth quarter, production capacity increased at the Khor Mor Gas Plant by 50 MMscf/d to 500 MMscf/d following the successful completion of further plant de-bottlenecking enhancements.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented:
“Dana Gas produced another robust set of financial results in the first nine months of the year, reflecting the Company’s continued attention to cost controls amid higher production in the KRI and supportive hydrocarbon prices. While headwinds to the global economy are increasing amid higher inflation and slowing growth, the outlook remains positive given continued elevated energy prices and the Company’s strong balance sheet and low debt position.”
Operations & Production
The Group’s overall production in 9M 2022 was 60,600 boepd, a 4% reduction from 63,200 boepd in 9M 2021. This was due to a 10% production drop in Egypt, mainly as a result of natural field declines. Production output in the KRI increased slightly with production averaging 34,300 boepd in 9M 2022 versus 34,000 in 9M 2021.
Liquidity
The Company’s cash position as at September 30 stood at AED 784 million ($214mm), including AED 271 million ($74mm) held at the Pearl level. The Company distributed an interim dividend to shareholders in October for the first six months of 2022 of 4.5 fils per share, equivalent to AED 315 million ($86mm).
—Ends—
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 62,100boepd in 2021. With sizeable assets in KRI and Egypt, 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
- 5% increase in the Company’s interim dividend
- 7% annualized dividend yield*
- Shareholders as of the record date of 29 September 2022 will be eligible to receive the interim dividend. Payment to shareholders expected by 21st of October 2022
Sharjah, UAE; 22 September 2022: Dana Gas PJSC (the “Company”), the Middle East’s largest regional private sector natural gas company, announced today that its Board of Directors has approved an interim dividend payment to shareholders for the first six months of 2022 of 4.5 fils per share, equivalent to AED 315 million, for distribution by the 21st of October 2022.
Mr. Hamid Jafar, Chairman of the Board, said:
“Today’s interim dividend announcement reflects our ongoing confidence in the business and demonstrates our robust operational and financial performance. High energy prices have contributed to our strong cash flow. When combined with continued steady production and effective cost control, we are able to continue to reward our shareholders with another interim dividend payment.”
The Company previously announced at its H1 2022 results that the Company generated a net profit of AED 407 million ($111mm) in the first six months of the year, an 82% increase compared to an adjusted net profit in H1 2021. The Company’s profitability in the first half of 2022 was driven by elevated hydrocarbon prices, a continued commitment to maintaining a low-cost base and strong operational performance in the KRI.
—Ends—
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 upstream and midstream assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 62,100 boepd in 2021. With sizeable assets in 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
Investor.relations@danagas.com
Highlights – H1 2022
- Net profit increased 82% to AED 407 million ($111mm) on a like for like basis
- Revenue increased 31% to AED 1,041 million ($284mm)
- 16% decrease in operating costs
Sharjah, UAE; 11 August 2022: Dana Gas PJSC (the “Company”), the Middle East’s largest regional private sector natural gas company, today announced its financial results for the half year ended 30 June 2022.
In the first six months of the year, the Company generated a net profit of AED 407 million ($111mm) or 5.8 fils per share, an 82% increase compared to an adjusted net profit (excluding reversal of impairment) of AED 225 million ($61mm) in H 1 2021.
The gains in Dana Gas’s profitability in the first half were driven by elevated hydrocarbon prices, the Company’s continued commitment to maintaining a low-cost base and strong operational performance in the Kurdistan Region of Iraq (KRI).
The Company’s revenue for the first six months of the year increased 31% to AED 1,041 million ($284mm) as compared to AED 792 million ($216mm) in H1 2021 and its operating costs dropped 16%. The Company’s realized prices during the first half of the year averaged $87/bbl for condensate and $44/boe for LPG compared to $48/bbl and $32/boe respectively in H1 2021.
Despite the challenging security situation, the Company’s current operations in the KRI have continued uninterrupted. Production from the KRI increased 1% in the first half and the KM250 expansion project has progressed well. During the first half, drilling of the project’s first development well was completed, and drilling operations for the second well are currently in progress. Whilst EPC construction work on KM 250 was suspended in June amid heightened security concerns, the Company is working with the authorities to address security concerns and to resume construction.
Given the strong operational and financial performance the Board expects to maintain its semi-annual dividend payment in keeping with the Company’s dividend policy. The interim dividend will be decided by the Board at its meeting in September.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented:
“Dana Gas delivered strong half year results, supported by our robust operational performance, low cost base and favourable energy market conditions. Despite an increased uncertainty around the global economy amid high inflation, the outlook for the remainder of 2022 is still encouraging with both energy prices and demand remaining high.”
Operations & Production
The Group’s overall production in H1 2022 was 61,100 boepd, a 5% reduction from 64,000 boepd in H1 2021. This was due to a 9% production drop in Egypt mainly as a result of natural field decline. Production output in the KRI increased by 1%, with production averaging 34,500 boepd in H1 2022 versus 34,300 in H1 2021.
Operations have continued as normal during the period. Heightened uncertainty in the region and subsequent precautionary security measures have impacted the Khor Mor expansion project. As a result, the KM250 project remains on temporary suspension. The Company and its partners are working closely with the KRG to address all concerns and all parties remain committed to implementing the expansion project and resume construction activities as soon as possible.
Liquidity and Collections
The Company’s cash position at the end of H1 2022 stands AED 759 million ($207mm) including AED 436 million ($119mm) held at the Pearl level.
The Group collected a total of AED 660 million ($180 mm) during the H1 2022, with the KRI and Egypt contributing AED 495 million ($135mm) and AED 165 million ($45mm) respectively.
—Ends—
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 62,100boepd in 2021. With sizeable assets in KRI and Egypt, 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
Highlights – Q1 2022
- Revenue up 32% to AED 513 million ($140mm)
- Group production output at 62,400 boepd
- Cash of AED 766 million ($209mm)
- Collected AED 253 million ($69mm) in Q1 2022
- 4.5 fils approved dividend to be paid on the 19th of May
Sharjah, UAE; 11 May 2022: Dana Gas PJSC (the “Company”), the Middle East’s largest regional private sector natural gas company, today announced its financial results for the first quarter ended 31 March 2022.
Net Profit was up 125% in Q1 2022, reaching AED 198 million ($54mm) or 2.8 fils per share as compared to AED 88 million ($24mm) or 1.26 fils per share in Q1 2021, reflecting strong business performance.
Revenue was AED 513 million ($140mm), 32% higher compared to AED 389 million ($106mm) in Q1 2021. The increase in revenue and profit was the result of higher hydrocarbon prices and the Company’s successful efforts to manage costs. The Company’s EBITDA increased 62% in Q1 2022 at AED 297 million ($81mm).
The Company’s realized prices during the period averaged $82/bbl for condensate and $43/boe for LPG compared to $44/bbl and $33/boe respectively in Q1 2021.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented:
“Building on the positive momentum from 2021, Dana Gas has delivered one of its best quarterly results, supported by high energy prices, continued high KRI operational performance and our low-cost base. This has allowed the Board of Directors to recommend a 4.5 fils dividend payment to shareholders. Looking ahead, good progress continues to be made on the $600 million KM250 gas expansion project. The next phase of development is expected to contribute an additional 25% to our total production capacity by Q2 2023 and will positively impact our top and bottom lines and support future dividend payments. The outlook for the remainder of 2022 is particularly encouraging, as energy prices and demand remain strong due to the prevalent global economic challenges.”
Operations & Production
The Group’s overall production fell slightly to 62,400 boepd in Q1 2022 versus 64,900 boepd in Q1 2021. Production output in the KRI remained similar year-on-year, with production averaging 35,400 boepd in Q1 2022 versus 35,300 in Q1 2021. Egypt production declined 7% to 27,000 boepd as a result of natural field depletion.
Furthermore, the KM250 expansion plans are progressing well. The KM expansion project is on track to deliver first gas in Q2 2023.
Liquidity and Collections
The Group’s cash and bank balance at end of Q1 stood at AED 766 million ($209mm) including AED 260 million ($71mm) held at the Pearl level, an increase of 13% compared to AED 678 million ($185mm) at the end of 2021. At the Company’s General Assembly held on 21 April 2022, the shareholders approved a cash dividend of 4.5 fils per share for the second half of 2021, to be distributed on the 19th of May. This brings the total dividend for the year ended 31 December 2021 to 8 fils per share.
The Group collected a total of AED 253 million ($69mm) during the quarter compared to AED 213 million ($58mm) in Q1 2021, with Egypt and KRI contributing AED 62 million ($17mm) and AED 191 million ($52mm) respectively.
The Company’s receivables in KRI stands at AED 216 million ($59mm) versus AED 176 million ($48mm) in Q1 2022 and a significant improvement in Egypt at AED 114 million ($31mm) at the end of quarter, compared to AED 480 million ($131mm) in Q1 2021.
CEO succession plan
The Dana Gas Board also announces the commencement of a succession planning process for the CEO to include a search for the candidate to succeed Dr. Patrick-Allman Ward who will have successfully completed 10 years of remarkable service leading the Company’s management. The Board of Directors has agreed that Dr. Allman-Ward will assist with the executive search process for his successor, which is expected to take the rest of the year 2022. Dr. Allman-Ward will thereafter continue to support the Company as Senior Adviser to the Board of Directors.
Mr. Hamid Jafar, Chairman of the Board of Dana Gas, commented:
“Since Patrick was appointed CEO by the Board in September 2013, Dana Gas has been transformed from a company with $1 billion in overdue receivables and $1 billion in debt to a company that has totally redeemed its Sukuk entirely, has negligible receivables, and that has been delivering consistent dividends to its shareholders at levels which are among the highest of its global peer group and currently the highest on the ADX. In this period the Company’s share price has risen from AED 0.6 per share to reach AED 1.15 per share. On behalf of the Board, I express my deepest gratitude for Patrick’s decade of loyal service. We obviously welcome Patrick’s assistance with the search for his successor, as well as his willingness to continue to serve the Company as a Senior Adviser to the Board. A successor CEO will be recruited to take over the executive helm of Dana Gas with the requisite qualifications and skill sets to drive the Company forward and implement its next phase of development and growth.”
Dr Patrick Allman-Ward, CEO of Dana Gas, commented:
“Serving as the CEO of Dana Gas has been both a pleasure and a privilege and has been the most exciting and challenging period of my life. Witnessing the transformation of the Company has been a hugely satisfying achievement. 2021 has been the Company’s best year since its establishment in 2005, with record collections, profits and dividends. At the beginning of my tenure all the Company’s free cash flow was absorbed by debt repayment, but now it flows to its shareholders in growing dividends. I look forward to continuing to work with the Board pending the appointment of my successor, and thereafter as Senior Adviser to the Board.”
—Ends—
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 62,600 boepd in 2021. With sizeable assets in KRI and Egypt, 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 4499
Sharjah, UAE; 21 April 2022: Shareholders of Dana Gas PJSC (the “Company’), the Middle East’s largest regional private sector natural gas company, have today approved the Board of Director’s recommendation at the Company’s Annual General Assembly to distribute AED 315 million ($86 million) or 4.5 fils per share cash dividend for the second half of the financial year ended 31 December 2021.
The payment will bring the total dividend for the financial year ended 31 December 2021 to AED 560 million ($ 153 million) or 8 fils per share, a 45 % increase compared to the dividend for 2020. 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.”
For the full year 2021, the Company posted a net profit of AED 1.2 billion ($317 million) or 14.5 fils per share as compared to a net loss of AED 1.4 billion ($376 million) in 2020, and on an adjusted basis, it posted a net profit of AED 469 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 (MMscf/d), 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 MMscf/d gas processing train in Q2 2023, which would increase gas production from 450 MMscd/d to 700 MMscf/d. 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.
—ENDS—
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 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 4499
Investor.relations@danagas.com
- Dana Gas shares advanced 48% in 2021 and 11% in Q1
- The Company produced record profit and collections in 2021
- Board Recommends a 4.5 fils cash dividend for the second half of 2021
Sharjah, UAE; 4 April 2022: Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, is pleased to announce that it has been selected for inclusion in the FTSE ADX 15 Index (FADX 15), the Abu Dhabi Securities Exchange (ADX)’s new blue chip equity index.
The FADX 15 comprises the 15 most liquid companies on the ADX, chosen on the basis of free float adjusted market capitalisation and median trading value. The index is the first in a series of indices jointly created by ADX and FTSE Russell to promote the creation of index-tracking investment vehicles on the Abu Dhabi bourse.
Dana Gas’s shares rose last year to their highest level since 2009, advancing by 48% in 2021 and 11% in Q1 2022. The FTSE ADX General Index, a broad measure of Abu Dhabi listed companies, increased 64% in 2021 amid increased demand for Abu Dhabi listed companies, making it one of the best performing equity indices globally.
Dr Patrick Allman-Ward, Dana Gas’s CEO, said:
“The inclusion of Dana Gas in the FADX 15, an index of the most investable stocks on the Abu Dhabi exchange, is a reflection of the big strides the Company has made over the past two years. In 2021, the company delivered its strongest financial performance in its history, supported by higher energy prices and our robust operational performance. To further enhance shareholder value, the Company’s management is continuing to find ways to improve efficiency while growing its production.”
Dana Gas’s record profits and collections in 2021 led the Board to recommend a total of 8 fils per share in dividends for fiscal year 2021, a 45% increase over the previous year. This came following the payment of 3.5 fils per share dividend in December and the Board’s recommendation to increase 2021 second half dividend from 3.5 to 4.5 fils per share.
The Company produced a net profit of AED 1.2 billion ($317 million) as compared to a net loss of AED 1.4 billion ($376 million) in 2020. The Company’s collections in 2021 were the highest ever at AED 1.4 billion ($377 million) and the year-end cash position stood at AED 678 million ($185 million).
—Ends—
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 assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 62,100 boepd in 2021. With sizeable assets in 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 4499
ir@danagas.com
- 45% increase in dividend compared to the previous year
- Record profitability and collections in 2021
- Board expressed its intention to maintain paying dividends twice a year
Sharjah, UAE; 15 March 2022: The Board of Directors of Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, is pleased to announce that it will recommend the distribution of a 4.5 fils per share cash dividend for the second half of 2021, to bring the total dividend for the year ended 31 December 2021 to 8 fils per share, a 45% increase compared to dividend for 2020.
For the full year 2021, the Company achieved a net profit of AED 1.2 billion ($317 million) as compared to a net loss of AED 1.4 billion ($376 million) in 2020, and on an adjusted basis, it posted a net profit of AED 469 million ($128 million) when one-off non-cash impairments and other income are excluded. Gross Revenue reached AED 1.7 billion ($452 million), up 30% year on year, supported by higher oil prices and production in the KRI. The Company’s collections in 2021 were the highest ever at AED 1.4 billion ($377 million) and the year-end cash position stood at AED 678 million ($185 million).
Hamid Jafar, Chairman of the Board of Directorsp, said:
“Dana Gas achieved record profits and collections over the previous year, through careful management of costs and operations, and against a backdrop of rising energy prices. This has enabled the Board to recommend a total of 8 fils in dividends for 2021, and the outlook for 2022 is positive given higher energy prices and the continued focus on management of operations and growth projects.”
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 MMscf/d gas processing train in Q2 2023, which would increase gas production from 450 MMscd/d to 700 MMscf/d.
Total investment by the Pearl Petroleum consortium exceeds US$2.3 billion to date, with total cumulative production of over 360 million barrels of oil equivalent (boe) of natural gas and liquids. The uninterrupted supply of gas to power plants in Erbil, Chemchemal and Bazian provides over 80% of the KRI’s power generation and has resulted in significant fuel cost savings through substitution of diesel representing both environmental and economic benefits for the Kurdistan Region and Iraq as a whole.
—Ends—
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 assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 62,100 boepd in 2021. With sizeable assets in 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
Investor.relations@danagas.com
Highlights
- 256% increase in operational net profit
- Revenue increased by 30% to $452mm (AED 1,657mm)
- Average group production was 62,100 boepd, record production in KRI
- Record full year collections of $377 million – up 107% YoY
- Record dividend payment of 9 fils per share paid in 2021 reflecting EPS of 16.5 fils per share
- Lowest levels of receivables since 2007
- KRI operations achieve net carbon neutral status
Sharjah, UAE; 9 February 2022: Dana Gas PJSC (the “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 2021.
The Company achieved a Net Profit of $317 million (AED 1,163mm) in 2021 as compared to a Net Loss of $376 million (AED 1,378mm) in 2020. The increase was primarily due to higher oil prices, improved operational performance and Other Income. Other Income included $608 million (AED 2,228mm) relating to amounts due following an arbitration award. This was partially offset by impairments of $451 million (AED 1,652mm) related to UAE Gas assets and Goodwill.
Adjusted Net Profit for the year, excluding the other income and impairments was $128 million (AED 469mm) versus 2020 Adjusted Net Profit of $36 million (AED 131 mm), an increase of 256%, reflecting robust underlying operating performance.
Revenue increased 30% to $452 million (AED 1,657mm) in 2021 compared to $349 million (AED 1,297mm) in 2020, supported by higher oil prices and higher production in Kurdistan Region of Iraq (KRI).
In light of the Company’s strong financial performance during the year, the Board of Directors of Dana Gas determined in November 2021 to pay a dividend of 7 fils per year payable in six monthly instalments of 3.5 fils each, thereby increasing Dana Gas’s annual dividend by 27% from the previous 5.5 fils. The first interim dividend of 3.5 fils was distributed in January 2022 following shareholders’ approval in December 2021.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented:
“We closed the year on a strong financial footing as a result of a robust operational performance over the last 12 months. We had record gas and LPG production in the KRI in December, achieving a 50% growth in gas production over the past 3 years as well as record collections of $377 million, all of which contributed to our record profits of $317 million. This allowed us to make record dividend payments, reflecting the Board’s confidence and optimism about the future of Dana Gas.
“This growth would not have materialised without the outstanding dedication and hard work of our staff who, despite the global COVID pandemic, have worked tirelessly to ensure the Company delivered on its commitments. We have progressed significantly on our expansion works at the Khor Mor plant. The first KM250 gas train is expected to go onstream as scheduled in Q2 2023. We are also pleased that our KRI operations achieved net carbon neutral status in 2021. This is an important milestone on our journey to reducing the carbon intensity of our operations to provide low-carbon energy for our customers.”
Operations & Production
Average group production slightly declined by 2% during 2021 to 62,100 boepd versus 63,200 boepd in 2020. Production was boosted by a 5% jump in output from the KRI, which reached 33,800 boepd. This helped to offset a drop in production from Egypt, which fell 7% to 28,300 boepd versus 30,300 boepd in 2020 as a result of natural field depletion.
The KRI and Egypt operations have continued without interruption and maintained full production, un-impacted by the COVID pandemic. At the end of 2021, sales gas production from the KRI operations reached 452 million cubic feet of gas per day (MMscf/d), marking a significant milestone on the back of numerous process improvements at the Khor Mor gas plant, including a bypass project completed in 2020 as well as a debottlenecking programme earlier in 2018.
In the KRI, the KM250 gas expansion works currently under way at the Khor Mor plant are progressing on schedule, with the project now fully financed after securing a 7-year $250 million loan from the US International Development Finance Corporation in September 2021. The Pearl consortium is fully committed to executing the expansion project as safely as possible and remains on track to deliver the first 250 MMscf/d gas processing train in Q2 2023.
Liquidity and Collections
The Group’s cash balance at year-end stood at $185 million, an increase of 70% compared to $109m at the end of 2020. The cash balance included $67 million (Dana Gas 35% share) held by Pearl Petroleum. The year-end cash balance is after payment of 3.5 fils dividend that was approved by the shareholders in December 2021.
The Group collected a total of $377 million in 2021 (2020: $182mm) with Egypt and KRI contributing $193 million (2020: $80mm) and $184 million (2020: $102mm) respectively. Its collections from Egypt and the KRI rose 107% year-on-year in 2021, marking a record level of collections for the Company on the back of a strong rebound in oil prices, an accelerated pace of payments from Egypt and the settlement of past outstanding KRI receivables from 2019 and 2020.
As of 31 December 2021, the Company’s Egypt receivables stood at $24 million (AED 88mm), the lowest level since Dana Gas commenced operations in the country in 2007. Total outstanding receivables in KRI as of 31 December 2021 was $43 million (AED 158mm).
The decrease in receivables in Egypt and the payment of past outstanding receivables in the KRI further strengthened the Company’s balance sheet and allowed the additional interim dividend payment of 3.5 fils per share that was approved at the General Meeting on 9 December 2021.
—Ends—
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 62,100boepd in 2021. With sizeable assets in KRI and Egypt, 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
- Gas production from Khor Mor field reaches record 452 MMsscf/d, a 50% increase in production since 2018
- Expansion project underway to achieve an additional 55% increase to 700 MMscf/d by next year
Sharjah, UAE; 12 January 2022, Dana Gas, the Middle East’s leading publicly listed regional natural gas company, and its partner, Crescent Petroleum, the oldest private oil & gas company in the Middle East, have reported record sales gas production from their operations in the Kurdistan Region of Iraq (KRI), reaching 452 million cubic feet of gas per day (MMscf/d) at the end of 2021.
The production milestone is the culmination of numerous process improvements at the Khor Mor gas plant, including a bypass project completed in 2020 as well as a debottlenecking programme earlier in 2018. Together, the process improvements have grown the production by 50% from 305 MMscf/d in 2018.
Dana Gas and Crescent Petroleum jointly operate the Khor Mor and Chemchemal gas fields on behalf of the Pearl Petroleum consortium, supplying the gas which enables much needed electricity generation in the KRI, and also producing close to 16,000 barrels of condensate and 1,000 tonnes of LPG per day. The successful process improvements will be reinforced by the KM250 expansion project at the plant which is currently under implementation, and will increase total capacity by an additional 55% to 700 MMscf/d by April 2023.
Major works for the US$630 million KM250 expansion project resumed in April, 2021 after a delay of one year due to the COVID pandemic. The project is now on track for the new target start date of April 2023. As part of the expansion works, the Company is also preparing to drill up to five development wells, which are scheduled to commence production in March 2022.
The KM250 Gas Expansion Project is supported by a $250 million financing agreement for 7 years with the U.S. International Development Finance Corporation (DFC) which was announced in September 2021. 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 burning natural gas and electricity generation in the Kurdistan Region and all of Iraq.
Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, said:
“The achievement of this production milestone underscores the progress we continue to make at Khor Mor to meet the rapidly growing demand for natural gas in the KRI. Despite the challenges the whole world has faced over the past two years, we are proud to have continued delivering uninterrupted supply of clean-burning natural gas to support the KRI economy and enable a healthy recovery. Meanwhile our major expansion plans at the Khor Mor and Chemchemal fields to target 1 billion cubic feet per day in the coming few years will enable improved services across the region for years to come.”
Dr Patrick Allman-Ward, CEO of Dana Gas, said:
“This milestone is testament to our people and their hard work making consistent production growth possible at our Khor Mor gas plant. Our continued investments since 2018, notably the Khor Mor de-bottlenecking and bypass projects, have allowed us to deliver reliable supplies of clean energy to support the KRI economy and its people, with enhanced economic and environmental benefits which will increase as we further grow production.”
Total investment by the Pearl Petroleum consortium exceeds US$2.3 billion to date, with total cumulative production of over 360 million barrels of oil equivalent (boe) of natural gas and liquids. The uninterrupted supply of gas to power plants in Erbil, Chemchemal and Bazian provides over 80% of the KRI’s power generation and has resulted in significant fuel cost savings through substitution of diesel representing both environmental and economic benefits for the Kurdistan Region and Iraq as a whole.
The displacement of diesel fuel for power generation in the KRI with gas has also enabled emissions savings of 42 million tonnes of CO2, thereby making a major contribution to reducing greenhouse gas emissions and reducing local air pollution in the region as well as supporting the transition to better energy sources to tackle global climate change.
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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 63,200 boepd in 2020. 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
ir@danagas.com
About Crescent Petroleum:
Crescent Petroleum is the first and largest private exploration and production company in the Middle East, with over 50 years of experience as an international operator in numerous countries including Egypt, Yemen, Canada, Tunisia, and Argentina, in addition to its continuing operations in the United Arab Emirates and Iraq.
Headquartered in Sharjah in the UAE, Crescent Petroleum has international offices in the UK and three locations across Iraq, as well as affiliated offices in Egypt and Bahrain. Crescent Petroleum is also the largest shareholder in Dana Gas, the Middle East’s first and largest regional private-sector natural gas company.
Contact: communications@crescent.ae
- Egypt collections increase 141% to $193 million
- Collections in the KRI increased 80% to $184 million in 2021
- Company’s collections enhanced by higher oil prices
Sharjah, UAE; 6 January 2022, Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company announces that its collections from the KRI and Egypt rose 107% year-on-year in 2021 to $377 million (AED 1.38 billion) from $182 million (AED 667mm) in 2020, enhanced by a strong rebound in oil prices, an accelerated pace of payments from Egypt and the settlement of past outstanding KRI receivables.
Dana Gas, which owns a 35% interest in Pearl Petroleum, saw its share of collections from sales of condensate, LPG and gas in the KRI rise 80% to $184 million (AED 674mm) in 2021 versus $102 million (AED 374mm) in 2020. This increase follows the full repayment of past outstanding receivables from 2019 and 2020.
Meanwhile in Egypt, Dana Gas collected $193 million (AED 707mm) during 2021, compared to $80 million (AED 293 mm) in 2020, a 141% year-on-year jump. The payments from the government of Egypt have reduced the Company’s receivables from the North African state to under $20 million (AED 73mm), the lowest level since Dana Gas commenced operations in the country in 2007. The total collections from Egypt in 2021 include a $48 million (AED 176mm) payment made by the Egyptian government in December.
Dr Patrick Allman-Ward, CEO of Dana Gas, said:
“We are extremely pleased by the strength of our collections in 2021, which have been enhanced by the rise in oil prices. The decrease of receivables in Egypt to the lowest level since 2007 and the payment of past outstanding receivables in the KRI further strengthened the Company’s balance sheet that allowed us to make an additional interim dividend payment of 3.5 fils per share that was approved at the General Meeting on the 9 December.
This record levels of collections has also provided us with the confidence to pursue our investment plans in both the KRI and Egypt supported by higher hydrocarbon prices and an improving macro-economic environment. Higher energy prices have a positive impact on the realized prices of the products sold by the Company and hence its profitability. As we start 2022, we will remain focused on profitably growing our business whilst maximising shareholder value.”
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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 63,200 boepd in 2020. 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