Company reports 59% fall in net profit for 2020, says operations remain fully operational
UAE’s energy firm Dana Gas said Thursday that it aims to advance the development of its assets in the Kurdistan Region of Iraq (KRI).
The company, which operates production and exploration assets in KRI, Egypt and UAE, reported a 59 percent decline in net profit to $36 million for the full year ended December 31, 2020, excluding one-off non-cash impairments. If one-offs are included, the company’s net loss would be $376 million versus a net profit of $157 million.
In a statement, the Abu Dhabi Securities Exchange-listed (ADX) and Sharjah-based company, maintained that it remained resilient despite the challenges posed by the coronavirus pandemic. It stressed that its operations in Egypt and KRI have continued without interruption and remained fully functioning despite the outbreak.
Robust financial position
“We exited the year in a robust financial position with a strong balance sheet, having agreed upon the sale of our Egypt onshore assets, redeeming our outstanding sukuk and entering into a new credit facility at a lower interest rate,” said Patrick Allman-Ward, chief executive officer of Dana Gas.
“In 2021, we aim to advance the development of our world-class assets in the KRI,” he said.
The company is also moving ahead with its plans to prepare for the drilling of the next exploration well in Block 6 in Egypt, which holds “material upside potential,” added Allman-Ward.
The preparation will cover the drilling of up to five development wells in the Kurdish region. Drilling is set to start in 2022.
Next exploration well
“It is also moving ahead on the evaluation of the highly prospective Block 6 in Egypt, interpreting the infill seismic data that was acquired in mid-2020 and planning for drilling the next exploration well in 2023,” the statement added.
In October, the company announced it had raised a loan worth $90 million for the redemption of $309 million in bonds. The outstanding sukuk has been fully redeemed, as scheduled, the firm said.
As for the sale of some of its assets in Egypt, Dana Gas said the deal is on track for completion in the first half of 2021.
Dana Gas had entered into a binding agreement last October with IPR Wastani Petroleum for the sale of onshore Egyptian producing oil and gas assets for up to $236 million.
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