Dana Gas payments from Egypt and Kurdistan jump 107% in 2021 on higher oil prices

Total collections rose to $377 million last year

A Dana Gas facility in the Kurdistan Region of Iraq. Photo: Wam

Dana Gas, one of the largest private natural gas companies in the region, said payments from operations in Egypt and the Kurdistan Region of Iraq rose by 107 per cent in 2021.

Collections jumped to $377 million last year, from $182m in 2020 on the back of higher oil prices as well as an accelerated pace of payments from Egypt and settlement of past dues in KRI, the company said on Thursday in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

Total collections in 2021 have “been enhanced by the rise in oil prices”, said Patrick Allman-Ward, chief executive of Dana Gas. “The decrease of receivables in Egypt to the lowest level since 2007 and the payment of past outstanding receivables in the KRI further strengthened the company’s balance sheet that allowed us to make an additional interim dividend payment of 3.5 fils per share.”

Oil prices rose more than 50 per cent last year as global economies recovered from the pandemic and Opec+ group of countries restrained production.

Brent, the global benchmark for two thirds of the world's oil, was down 0.78 per cent to $80.17 per barrel at 11.24am UAE time on Thursday, while West Texas Intermediate, the gauge that tracks US crude, was trading 0.73 per cent lower at $77.28 per barrel.

Dana Gas, which owns a 35 per cent interest in Pearl Petroleum, said its share of collections from sales of condensate, gas and liquefied petroleum gas in Kurdistan jumped 80 per cent to $184m in 2021.

In Egypt, the company collected $193m last year, up 141 per cent from the previous year.

“This record level of collections has also provided us with the confidence to pursue our investment plans in both the KRI and Egypt supported by higher hydrocarbon prices and an improving macro economic environment,” Mr Allman-Ward said.

“As we start 2022, we will remain focused on profitably growing our business whilst maximising shareholder value.”

In September, an international arbitration tribunal awarded Dana Gas $607.5m in compensation for damages in a case against Iran's state-owned energy producer.

The dispute concerns a 25-year gas sales and purchase contract between Dana Gas affiliate Crescent Petroleum and the National Iranian Oil Company related to a UAE gas project.

Dana Gas posted a $279m net profit for the January to September period compared with a loss of $379m in the same period last year.