Operations, production not affected by COVID-19: Dana Gas

Photo: WAM

Dana Gas has said that its facilities, operations and production have not been affected by the coronavirus, COVID-19.

In a statement on Sunday, the company said that its exploration and production facilities and operations in Kurdistan Region of Iraq and Egypt remain fully operational and production has not been affected by the pandemic.

Natural gas makes up 75 percent of the company’s production which is sold under long term gas sale contracts, with fixed prices to its host Governments.

"These contracts make up for approximately 50 percent of our annual income and remain stable as they are unaffected by fluctuating oil prices," it added.

The balance sheet remains strong, with year-end 2019 cash balance of US$425 million, Dana Gas noted, adding that it "has no requirement to provide capex funding for its growth plans in the Kurdistan Region of Iraq. Current production stands at 400 MMscf/d."

In its last meeting Board of Directors of Dana Gas agreed to recommend a cash dividend to shareholders of AED 5.5 fills per share for the financial year ended 31 December 2019. This will be put to shareholders at the Annual General Meeting on 14th April 2020.

Patrick Allman-Ward, Dana Gas CEO said, "Dana Gas delivered a strong financial and operational performance in 2019. This strong performance has continued into 2020. The health and welfare of our staff is our first priority and we continue to take measures with regard to the COVID-19 pandemic to ensure their wellbeing whilst allowing our operations to continue without interruption."

"The current low oil price environment is putting stress on the entire industry sector but Dana Gas is naturally hedged against low oil prices due to our product mix and long term gas sales agreements at steady prices," he explained, adding, "We are also fortunate to operate in low cost environments and we have maintained a disciplined approach to cost control since the last price downturn in 2014."

Allman-Ward continued, "We are currently reviewing expenditure and discretionary spending and we will take appropriate measures if the price of oil remains low. The recommendation of a cash dividend by the Board is a reflection of how strong our financial and operational status is and the long-term outlook of the company."

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