Sharjah-based Dana Gas will recommend that shareholders approve a cash dividend of 4.50 fils for the second half of 2021, bringing the total dividend for the year to 8 fils per share.
The move marks a 45 per cent annual increase in the Abu Dhabi-listed company’s total dividend for the year ended December 31, 2021, Dana Gas said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.
The company swung to a record annual profit last year as collections improved amid higher oil prices.
“Dana Gas achieved record profits and collections over the previous year through careful management of costs and operations and against a backdrop of rising energy prices,” said chairman Hamid Jafar.
“This has enabled the board to recommend a total of 8 fils in dividends for 2021.”
Net profit for the 12-month period to the end of December climbed to $317 million, from a loss of $376m in 2020, the company said in February.
Revenue increased 30 per cent a year to $452m in 2021, supported mainly by higher oil prices and increased production in Kurdistan Region of Iraq.
The outlook for 2022 is “positive, given higher energy prices and the continued focus on management of operations and growth projects”, Mr Jafar said.
The KM250 gas expansion project undertaken by Dana Gas in KRI is continuing, the company said.
Construction works at the Khor Mor field remain on track to deliver the first 250 million standard cubic feet per day gas processing train in the second quarter of 2023, it said.
The group's cash collections hit a record $377m last year, up from $182m in 2020, bringing the total cash balance at the end of the year to $185m, the company said.
Egypt and the KRI contributed $193m and $184m, respectively, to its collections.
Dana Gas, which spent about $126m in capital expenditure in 2021, is expected to maintain the same level of spending this year.
The company does not have an immediate need to raise further debt, chief executive Patrick Allman-Ward said last month.
RESULTS
West Asia Premiership
Thursday
Jebel Ali Dragons 13-34 Dubai Exiles
Friday
Dubai Knights Eagles 16-27 Dubai Tigers
Hydrogen: Market potential
Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.
"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.
Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.
The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.
Summer special
SUZUME
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Mohammed bin Zayed Majlis
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
UAE currency: the story behind the money in your pockets
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
