Dana Gas managed to turn profitable in the second quarter of this year; To record $113 million (416 million dirhams), compared to losses of 131 million dirhams ($36 million) for the same period in 2020.
The company attributed this positive shift to revenue growth of about 43%, in addition to achieving a reversal of impairment provisions amounting to 286 million dirhams.
Dana Gas, which is listed on the Abu Dhabi Financial Market, recorded in the first half of 2021 a net profit (attributable to the company's shareholders) amounting to 137 million dollars (504 million dirhams), compared to With a loss of $19 million (69 million dirhams) for the same period in 2020, and earnings per share of 7 fils.
Excluding provisions for impairment in Egypt that were reversed, the company had an adjusted net profit of $61 million (AED 225 million), compared to $18 million (66 million dirhams) during the first half of 2020, which represents an increase of 239% as a result of the improvement in oil prices and the company’s strong operational performance.
Revenues for the first half of 2021 increased by 19% to reach $216 million (792 million dirhams), compared to 181 million dollars (664 million dirhams) for the first half of the year. 2020, due to the high prices achieved during that period.
The rise in net profits contributed to improving the company's financial position and increasing its accumulated profits to $142 million, after it constituted accumulated losses of $20 million, which enhances the company's ability on the distribution of cash dividends in the future.
The company canceled on April 23, 2021 the agreement to sell its assets in Egypt, thus continuing to own and operate these assets to enhance shareholder returns. Where the company will focus on controlling expenses and ensuring the greatest possible return from its operational activities.
Cash flows from operations in Egypt increased during the first half by 175% to reach $80 million, and this comes as a result of the increase in oil prices and cash payments received during the period. This confirms the correctness of the Board of Directors' decision to cancel the sale of the company's assets in Egypt.
The IPR El Wastani Petroleum Group Ltd. had filed an arbitration lawsuit against Dana Gas Egypt over its right to cancel the sale and purchase agreement. On 17 July 2021, the London Court of International Arbitration rejected the IPR's claim, ruling that Dana Gas terminated the agreement.
During this period, Dana Gas also sold its stake in the Egyptian Bahrain Gas Development Company (EBGDCO) - an LPG extraction facility in Egypt - for $11.4 million. (42 million dirhams). It is reported that Dana Gas' stake in this company amounted to 26.4%.
