Dana Gas Operations in KRI, Egypt Not Affected by Covid

SEATTLE (Oil Monster): Dana Gas, a top regional natural gas company, said that exploration and production facilities and operations in Kurdistan Region of Iraq (KRI) and Egypt remain fully operational and production has not been affected by the Covid-19 pandemic.

Natural gas makes up 75 per cent of the Company’s production which is sold under long term gas sale contracts, with fixed prices to its host Governments, a Dana Gas statement said.

These contracts make up for about 50 per cent of its annual income and remain stable as they are unaffected by fluctuating oil prices, the statement added.

The balance sheet remains strong, with year-end 2019 cash balance of $425 million. In addition, the Company has no requirement to provide capex funding for its growth plans in the KRI. Current production stands at 400 MMscf/d.

Patrick Allman-Ward, CEO, Dana Gas, said: “Dana Gas delivered a strong financial and operational performance in 2019. This strong performance has continued into 2020. The health and welfare of our staff is our first priority and we continue to take measures with regard to the COVID-19 pandemic to ensure their wellbeing whilst allowing our operations to continue without interruption.”

“The current low oil price environment is putting stress on the entire industry sector but Dana Gas is naturally hedged against low oil prices due to our product mix and long term gas sales agreements at steady prices. We are also fortunate to operate in low cost environments and we have maintained a disciplined approach to cost control since the last price downturn in 2014.

“We are currently reviewing expenditure and discretionary spending and we will take appropriate measures if the price of oil remains low. The recommendation of a cash dividend by the Board is a reflection of how strong our financial and operational status is and the long-term outlook of the Company,” he added.

Courtesy: www.tradearabia.com