Dan Gas said it swung into a net loss in 2018 due to one-time cash impairments.

The Middle East’s largest private sector natural gas company said it reported a loss of Dh681 million in 2018 compared to a net profit of Dh304 million.

The Impairments follow the annual year-end oil and gas reserves valuation of its Zora field in the UAE and its fields in Egypt, and which required them to take an exceptional one-off non-cash impairment of Dh685 million for Zora and Dh216 million in Egypt, the company said in a statement.

Revenue was 4 per cent higher at Dh1.7 billion compared with last year’s Dh1.65 billion due to higher realised prices of gas.

“2018 was a year of strong operational performance for Dana Gas. We delivered, a 30 per cent increase in gas production ... We made large savings from restructuring the Sukuk, we achieved higher collections and the company paid its first dividend,” Dr Patrick Allman-Ward, CEO of Dana Gas said.

In 2018, the company concluded the Sukuk restructuring and a buyback programme, which together has reduced the Sukuk from $700 million (Dh2.57 billion|) to $399 million. The company will save $40 million in ongoing annual financing costs. Notwithstanding the Sukuk payments and a cash dividend of $95 million, the company’s cash balance at year end was $407 million.