Cash flow of 766 million dirhams and collection of 253 million dirhams
Announcing a dividend of 4.5 fils per share and distributing dividends on May 19th
Sharjah: «Gulf»
Dana Gas announced strong financial results in the first quarter, and the company’s net profit rose 125% to 198 million dirhams, or 2.8 fils per share, compared to 88 million dirhams, or 1.26 fils per share, in the first quarter of 2021.
The company’s revenues amounted to 513 million dirhams, an increase of 32% compared to 389 million dirhams in the first quarter of 2021. The increase in revenues and profits is attributed to the rise in oil prices and the company’s effective efforts in managing costs. The company’s EBITDA increased by 62% in the first quarter of 2022 to reach AED 297 million.
The average selling prices achieved during this period amounted to $82 per barrel of condensate and $43 per barrel of oil equivalent of liquefied petroleum gas, compared to $44 and $33, respectively, in the first quarter of 2021.
Dr. Patrick Allman-Ward, CEO of Dana Gas, said: “Continuing the positive momentum achieved by the company in 2021, Dana Gas recorded one of its best quarterly results, taking advantage of high energy prices and continuing to record excellent operational performance in the Kurdistan region. Iraq, in addition to the low cost of its operations. These positive factors prompted the Board of Directors to recommend the payment of a dividend of 4.5 fils to shareholders. We look forward during the next stage to complete the implementation of the project to expand and develop the gas processing facility in Khor Mor (Khormore 250) at a cost of $600 million. The next phase of the project is expected to increase the company’s total production capacity by 25% by the second quarter of 2023, which will contribute to improving our revenues and profits and enhance our future dividends. The remainder of 2022 is very encouraging in light of the fact that demand rates and energy prices remain strong despite the prevailing global economic challenges.”
Operations updates
The group’s total production declined slightly to 62,400 boe/d in the first quarter 2022 compared to 64,900 boe/d for the same period in 2021. The year-on-year production rate in the Kurdistan Region of Iraq remained unchanged, with average production at 35,400 barrels of oil equivalent per day in the first quarter of 2022 compared to 35,300 barrels per day in the first quarter of the previous year. As for Egypt, production decreased by 7% to 27,000 barrels of oil equivalent per day as a result of the natural decline in the production of operating fields.
Expansion work on the Khormore 250 project is progressing according to the set schedule, and gas production is scheduled to start during the second quarter of 2023.
Liquidity and collection of receivables
The cash flow and bank balances of the group at the end of the first quarter of 2022 amounted to 766 million dirhams, including 260 million dirhams held by Pearl Petroleum, an increase of 13% compared to 678 million dirhams at the end of the 2021 fiscal year. The company’s shareholders agreed, in a meeting Its general assembly, held on April 21, 2022, approved the distribution of cash dividends of 4.5 fils per share for the second half of 2021, and these dividends are scheduled to be paid to shareholders on May 19. This brings the total dividends for the year ending on December 31, 2021 to 8 fils per share.
The total cash payments received by the group amounted to 253 million dirhams during the first quarter of 2022 compared to 213 million dirhams in the first quarter of 2021, where the contributions of Egypt and the Kurdistan region of Iraq amounted to 62 million dirhams and 191 million dirhams, respectively.
As for the amounts owed to the company in the Kurdistan region of Iraq, it amounted to 216 million dirhams, compared to 176 million dirhams in the first quarter of 2021. The amounts owed (unpaid) to the company in Egypt witnessed a significant improvement; These amounts decreased at the end of the first quarter of 2022 to reach 114 million dirhams, compared to 480 million dirhams at the end of the first quarter of 2021.