Dana Gas, one of the largest private natural gas companies in the Middle East, has been included in the Abu Dhabi Securities Exchange’s newly launched benchmark, the FTSE ADX 15 Index (FADX 15).
The gauge includes the 15 largest and most liquid companies on the ADX, chosen on the basis of free float adjusted market capitalisation and median trading value. It is the first in a series of indices jointly created by ADX and FTSE Russell and aims to support the bourse’s recently launched derivatives market and the creation of exchange-traded funds and other index-tracking investment vehicles.
Dana Gas’s shares rose 48 per cent in 2021 to their highest level since 2009, as its operations were boosted by higher oil prices. The company swung to a record net profit of $317 million last year, compared with a loss of $376m in 2020.
The company's shares were also up 11 per cent in the first quarter of this year.
“The inclusion of Dana Gas in the FADX 15 ... is a reflection of the big strides the company has made over the past two years," Dana Gas chief executive, Patrick Allman-Ward, said.
"The company’s management is continuing to find ways to improve efficiency while growing its production.”
Dana Gas, which has assets in Egypt, Kurdistan region of Iraq (KRI) and the UAE, posted a 30 per cent rise in revenue last year to $452m. The company’s collections were its "highest ever" at Dh1.4 billion and its year-end cash position stood at Dh678m.
The board has recommended a total of 8 fils per share in dividends for 2021, a 45 per cent increase over the previous year.
ADX, the Arab world’s second-largest stock market by market value, is the first exchange in the region to use FTSE Russell as its index administrator. The move is part of a broader strategy launched last year to attract more foreign investors and enhance its liquidity.
The partners are developing and launching new indexes to support ADX’s growth.
The FTSE ADX General Index, a broad measure of Abu Dhabi listed companies, increased 64 per cent in 2021 amid increased demand from investors, making it one of the best performing equity indices globally.
ADX led the GCC in year-to-date gains and was up about 17 per cent at the end of March after registering record growth during 2021.
The Abu Dhabi exchange, which more than doubled its market capitalisation last year, had nine listings in 2021. It could host 13 more IPOs before the end of this year as it seeks to reach a market value of Dh3 trillion, Mohammed Al Shorafa, chairman of ADX, told Sky News Arabia last week.
Last week, Abu Dhabi's Multiply Group, a technology-focused investment holding company, also said that it had been included on the FADX 15.