Dana Gas shareholders approve 4.5 fils per share cash dividend for H2 2022

The payment will bring the total dividend payment for the year to Dh630 million

A Dana Gas facility in the Kurdistan Region of Iraq. Shareholders holding the shares as of May 4, 2023 will be eligible to receive the interim dividend. Payment to shareholders expected on the 25th of May 2023. - KT file

By WAM

Published: Thu 27 Apr 2023, 1:58 PM

Shareholders of Dana Gas on Thursday approved the board of directors’ recommendation at the company’s annual general assembly to distribute a further 4.5 fils per share cash dividend for the second half of the financial year ended December 31, 2022.

Shareholders holding the shares as of May 4, 2023 will be eligible to receive the interim dividend. Payment to shareholders expected on the 25th of May 2023.

The payment will bring the total dividend payment for the year to Dh630 million or 9 fils per share, a 12.5 per cent increase compared to the dividend for 2021. The increased payout reflects the company’s strong operational performance for the year and also higher global energy prices.

Hamid Jafar, Chairman of Dana Gas, said: “Our shareholders approved the proposal of the Board of Directors to pay out a dividend for the second half of 2022, reflecting our strong operating and financial performance throughout the year. This recommendation also reflects our deep-seated belief in the company’s growth prospects, both in the Kurdistan Region of Iraq, where our production has increased again and in Egypt, where we hope to maximise the value from our assets with the proposed concession consolidation.”

The company reported its Q1 2023 production numbers, with average group production increased to 62,900 boepd. In the KRI, production output was 9.5 per cent higher year-on-year for the first quarter, and 7.6 per cent higher on a sequential quarterly basis.

This resulted from an increase in production capacity at the Khor Mor Gas Plant by 50 MMscf/d in the third quarter of 2022, following the successful completion of a further plant-debottlenecking project. As of January 2023, total production capacity stands at 500 MMscf/d.

With respect to the KM 250 gas expansion project in the KRI, the Company has set a new target date of April 2024 for the first gas. The Company also announces that its affiliate, Pearl Petroleum, is considering different financing options for the KM-250 expansion project at the Khor Mor field, including a potential bond issue.