RIYADH: Higher oil prices have pushed Dana Gas, the Middle East's regional private sector natural gas company back into profit for the nine months to September.
The firm earned a record net profit of $279 million (AED1,025 million), compared to a loss of $379 million (AED1,390 million) in the nine months of 2021.
Other key drivers were improved operational performance and other income. Its profit included "other income" of AED2,229 million and a AED 286 million reversal of impairments related to Egypt assets.
Excluding the other income and impairments, Dana reported profit from operations of AED364 million versus AED113 million for the first nine months of 2020, an increase of 220 percent reflecting strong underlying operating performance on the back of higher oil prices
Revenue for the first nine months of 2021 increased 27 percent to AED1,224 million compared to AED960 million for the same period last year, also supported by higher production in Kurdistan region of Iraq.
Dana's board agreed to pay a dividend of 7 fils per year payable in six monthly installments of 3.5 fils, an increase of 27 percent from the existing 5.5 fils.
A meeting on Dec.9, 2021 will approve the first interim dividend of 3.5 fils per share to be paid in December 2021.
“The steps we have taken to increase production and reduce its cost structure and the progress it has made in increasing collections has well-positioned Dana Gas to benefit from rising energy prices and create shareholder value. Operationally, the company’s production in the KRI grew by 7 percent and is on track with its expansion plans, with first gas from the KM250 project scheduled for April 2023," CEO Patrick Ward said.
"In Egypt, a five-well drilling program has been concluded and the additional production has almost entirely offset natural well declines. Our strong production and robust operational performance, coupled with high oil prices, has resulted in a much stronger financial position,” he added.