Dana Gas’ Board recommends cash dividend of 4.5 fils for H2 2022

The Board of Directors of Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, on Tuesday announced 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 Dh630 million or 9 fils per share, a 12.5 per cent 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 of the security and macro-economic challenges faced,” Dana Gas said in a statement.

For FY 2022, the company reported a net profit of Dh667 million as compared to Dh1.16 billion in 2021. Excluding other income and impairments, Dana Gas reported adjusted net profit of Dh718 million as compared to Dh469 million in 2021, an increase of 53 per cent. The strong year-on-year profits were sustained by high energy prices, steady production and prudent cost control.

Revenue rose 17 per cent to Dh1.94 billion in 2022 compared to Dh1.66 billion in 2021 due to higher realized 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 per cent to Dh209 million in 2022 compared to Dh220 million 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 Kurdistan Region in Iraq (KRI) increased to 34,300 barrels of oil equivalent per day (boepd). 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 million metric standard cubic feet per day (MMscf/d) to 500 MMscf/d. Gas production reached a new high of 500 MMscf on the 14 January, which will have a positive impact on production and revenues in 2023, the company said.

• Business