Stock - Dana Gas facility in Iraqi Kurdistan
A Dana Gas facility. The dividend will be distributed by October 21 this year. Image Credit: Supplied

Sharjah: Dana Gas on Thursday announced that its board of directors has approved an interim dividend payment of 4.5 fils per share for the first six months of 2022, equivalent to Dh315 million.

The dividend will be distributed by October 21 this year.

Hamid Jafar, chairman of the board, commented: “Today’s interim dividend announcement reflects our ongoing confidence in the business and demonstrates our robust operational and financial performance. High energy prices have contributed to our strong cash flow. When combined with continued steady production and effective cost control, we are able to continue to reward our shareholders with another interim dividend payment.”

The company generated a net profit of Dh407 million in the first six months of the year, an 82 per cent increase compared to an adjusted net profit in H1 2021.

The company’s profitability in the first half was driven by elevated hydrocarbon prices and a continued commitment to maintaining a low-cost base.

ADX-listed Dana Gas has upstream and midstream assets in the UAE and across the region.

The company’s overall production in H1-2022 was 61,100 barrels of oil-equivalent per day (boepd), a 5 per cent reduction from 64,000 boepd in H1-2021. Dana attributed this to a 9 per cent output drop in Egypt mainly as a result of natural field decline. Meanwhile, output in Kurdistan Region of Iraq increased by 1 per cent, with production averaging 34,500 boepd in H1-2022 versus 34,300 boepd in H1-2021.

“Despite an increased uncertainty around the global economy amid high inflation, the outlook for the remainder of 2022 is still encouraging with both energy prices and demand remaining high,” Patrick Allman-Ward, CEO of Dana Gas, said earlier.