Dubai: Dand Gas' shareholders at the annual general meeting on Tuesday approved a feasibility study to separate the company’s Upstream and Midstream businesses in a demerger.
This would create two publicly traded companies on the Abu Dhabi Stock Exchange (ADX), the compay said in a statement.
Under the plan, existing shareholders would own shares in both the Upstream business, which comprises operations in the Kurdistan Region of Iraq and Egypt, and the Midstream business, which will hold the UAE Gas project that is currently awaiting arbitration decision/award.
“We are looking at enhancing shareholder value separating our Upstream and Midstream assets in a demerger. I would like to extend my gratitude to our shareholders for their continued support for the company and their confidence in the growth potential of Dana Gas,” said Hamid Jafar, Chairman of Dana Gas.
Shareholders of the company alo approved the Board of Director’s recommendation to distribute a 5.5 fils per cash dividend for the financial year ended 31 December 2019.
“This is the Company’s third consecutive dividend and highlights the excellent results from the hard work the Board and management team have delivered over the past several years to strengthen the Company’s financial position that has been reflected in the steady dividend payments. During 2019, we were able to add to production and strengthen our operations, making us more resilient to the difficult global economic environment,” said Jafar.
The company posted its highest annual net profit in seven years of $157m (Dh575m) for the 2019 financial year, compared to a net loss of $186m (Dh682m) in FY2018. Net profit from core operations.