Stock - Dana Gas facility in Iraqi Kurdistan
The Dana Gas facility in Iraqi Kurdistan. The company is the biggest privately-owned natural gas producer in the region. Image Credit: Supplied

Dubai: Rising energy prices coupled to demand helped Dana Gas clock in Dh198 million as net profit, a gain of 125 per cent year-on-year. Revenues fed into the demand, raising Dh513 million, which was 32 per cent higher on the Dh389 million from last year, same time.

And most important, Dana Gas realized prices during the first three months averaged $82 a barrel for condensate and $43/boe for LPG compared to $44/bbl and $33/boe in Q1-2021.

“Looking ahead, progress continues to be made on the $600 million KM250 gas expansion project,” said Dr Patrick Allman-Ward, CEO of Dana Gas. “The next phase is expected to contribute an additional 25 per cent to our total production capacity by Q2-2023 and will positively impact our top- and bottom-lines and support future dividend payments.

“The outlook for the remainder of 2022 is particularly encouraging, as energy prices and demand remain strong due to the prevalent global economic challenges.”

The company has also set in motion the process to pick a new CEO. The board of directors had recommended a 4.5 fils a share as dividend for the second-half of 2021. Last month, shareholders had approved the dividend, which will be distributed on May 19. This brings the total dividend for 2021 to 8 fils per share.

CEO succession
The Board of Directors at Dana Gas has initiated a succession planning process for the CEO. The incumbent, Dr. Patrick-Allman Ward, will have done 10 years and will assist with the search process for his successor.

The is expected to take up the rest of the year. Dr. Allman-Ward will continue as senior adviser to the Board.

“Since Patrick was appointed CEO in September 2013, Dana Gas has been transformed from a company with $1 billion in overdue receivables and $1 billion in debt to a company that has totally redeemed its Sukuk entirely, has negligible receivables, and that has been delivering consistent dividends to its shareholders at levels, which are among the highest of its global peer group and currently the highest on the ADX," said Hamid Jafar, Chairman.

Production numbers

The Group’s overall production dropped ‘slightly’ to 62,400 boepd in the first quarter versus 64,900 boepd in Q1-2021. Output at its plant in Kurdistan Region of Iraq was at the same levels, averaging 35,400 boepd in the first three months. The one in Egypt saw a production decline of 7 per cent to 27,000 boepd as a result of natural field depletion.

A successor CEO will be recruited to take over the executive helm of Dana Gas with the requisite qualifications and skill sets to drive the Company forward and implement its next phase of development and growth

- Hamid Jafar, Chairman of Dana Gas