Shareholders at Dana Gas, the Middle East’s largest private sector natural gas company, announced its decision to distribute AED 5.5 fils per cash dividend for fiscal year (FY) 2018/19, following a press release.
This decision comes after a feasibility study to separate the company’s upstream and midstream businesses in a demerger and was approved by shareholders. In effect, this would create two publicly traded companies on the Abu Dhabi Stock Exchange (ADX).
Under the plan, existing shareholders would own shares in both the upstream business, which comprises operations in the Kurdistan Region of Iraq and Egypt; and the midstream business, which will hold the UAE gas project that is currently awaiting arbitration decision/award.
Chairman of Dana Gas, Hamid Jafar, said: “This is the Company’s third consecutive dividend and highlights the excellent results from the hard work the Board and management team have delivered over the past several years to strengthen the Company’s financial position that has been reflected in the steady dividend payments.”
The company posted its highest annual net profit in seven years of $157 million (AED 575 million) for 2019, compared to a net loss of $186 million (AED 682 million) in 2018.