The Emirati company Dana Gas, listed on Abu Dhabi Financial Market, announced its preliminary unaudited financial results. The data showed that the company recorded a net loss after tax of 1.378 billion dirhams ($376 million) during 2020.
The company gained 575 million dirhams ($157 million) during 2019.
Dana Gas explained it has set aside non-cash allocations of 894 million dirhams ($244 million). The company’s assets value decreased in Egypt following the sharp decline in oil prices, and the negative economic impacts associated with it as a result of the pandemic.
The company set aside a sum of 597 million dirhams ($163 million) as a result of the decrease in the value associated with goodwill, after selling company’s onshore assets in Egypt.
Dana Gas net profit
Dana Gas said that its annual net profit amounted to 131 million dirhams ($36 million). In 2019 , the number was at 322 million dirhams ($88 million), excluding exceptional income and depreciation.
The company attributed the decline in net profit during the year to the decline in achieved prices, mainly.
Dana said its net profit from ongoing operations during 2020 was 118 million dirhams ($32 million). This indicates the strength of the basic operating performance, despite the sharp decline in oil prices, and the economic difficulties caused by the pandemic.
The company’s share from Iraqi Kurdistan receipts amounted to 374 million dirhams ($102 million), 86% of annual revenues.
The balance of trade receivables at the end of the year was $39 million (Dana Gas’s share).
The company achieved an amount of 293 million dirhams ($80 million) in Egypt during 2020, which is 81% of the 2020 bills. The balance of trade receivables amounted to $130 million at the end of the year.
Dana Gas concluded the year by reaching an average production of 63,200 Barrels of oil equivalent per day (BOE/D). The number was at 66,200 (BOE/D) during 2019, due to the decrease in production by 8% in Egypt.
This was offset by a partial increase in production in Iraqi Kurdistan, after the expansion project was completed in July of 2020.
The company expected selling its onshore oil and gas-producing assets in Egypt would be completed at about $236 million to IBR Al-Wastani Petroleum Ltd., a subsidiary of the IBR Energy group, in the first half of 2021.
A binding agreement
Dana Gas announced last October that it had entered into a binding agreement with IBR Al Wastani Petroleum Company Ltd.. The company will sell its onshore oil and gas producing assets in Egypt for up to $236 million, including future conditional payments.
The deal includes the sale of Dana Gas for its entire operating stakes in its four onshore concession areas, which are Manzala, West Manzala, West Al Qantara and North Salhia.