Dana Gas’ Board Recommends Cash Dividend Of 4.5 Fils For H2 2022

SHARJAH, (UrduPoint / Pakistan Point News / WAM - 21st Mar, 2023) The board of Directors of Dana Gas today announced that it has recommended an incremental dividend payment of 4.5 fils per share for H2 2022.

A payout of 4.5 fils per share for the second half of 2022 would take the total dividend payment for 2022 to AED630 million or 9 fils per share, a 12.5 percent increase compared to the dividend for 2021. This follows the interim dividend paid in October of 4.5 fils per share.

The increased payout reflects higher global energy prices and the Company’s good operational performance for the year. The outlook remains positive given the global energy market dynamics and despite some security and macroeconomic challenges faced.

For FY 2022, the Company reported net profit of AED667 million (US$182 mn) in 2022 as compared to AED1.16 billion (US$317 mn) in 2021.

Excluding other income and impairments, Dana Gas reported adjusted net profit of AED718 million (US$196 mn) as compared to AED469 million (US$128 mn) in 2021, an increase of 53 percent. The strong year-on-year profits were sustained by high energy prices, steady production and prudent cost control.

Revenue rose 17 percent to AED1.94 billion (US$529 mn) in 2022 compared to AED1.66 billion (US$452 mn) in 2021 due to higher realised prices and production output in the Kurdistan Region of Iraq (KRI).

Production in the KRI and Egypt remained uninterrupted throughout the year. Operational costs decreased by 5 percent to AED209 million (US$57mn) in 2022 compared to AED220 million (US$60mn) in 2021.

Hamid Jafar, Chairman of the Board of Directors, said, “The Board of Directors recommended this dividend, which reflects our strong belief in Dana Gas’ growth prospects and recognises the Company’s strong performance. Steady production and an extended period of higher energy prices have contributed positively to our cash flow generation last year despite the challenges, and we are committed to maximising the dividends to shareholders.”

The Company’s share of 2022 production in the KRI increased to 34,300 boepd (barrels of oil equivalent per day). Following the successful completion of further plant de-bottlenecking enhancements at the Khor Mor facility in the second half of the year, the plant’s production capacity increased by 50 MMscf/d (million standard cubic feet per day) to 500 MMscf/d. Gas production reached a new high of 500 MMscf on 14th January, which will have a positive impact on production and revenues in 2023.