Dana Gas Company announced its preliminary unaudited financial Results for the full year 2020.
The Company reported a net profit of $36 million versus $88 million in 2019, excluding one-off non-cash impairments and other income. Including these one-offs, the Company reported a net loss of $376 million versus a net profit of $157 million.
A total of $412 million of impairments were incurred mostly related to the sale of Dana Gas Egypt onshore assets.
The sale for up to $236 million of Dana’s onshore Egyptian oil and gas assets, agreed with IPR Wastani Petroleum last year, is expected to close in the first half of 2021, while the company will retain its interests in its exciting offshore exploration concession, North El Arish (Block 6) which contains material gas resource potential in excess of 20 Tcf
According to the company’s statement, Operations in Kurdistan region in Iraq contributed net profit of $32 million despite the challenging year caused by the COVID-19 pandemic. The company’s revenue was $349 million in 2020, while in 2019 was $459 million due to both lower realized prices and lower production in Egypt.
The Company’s general and administrative costs were reduced by a further 20% year-on-year (YoY). Dana Gas completely redeemed its outstanding Sukuk in October 2020.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented: “The world experienced unprecedented shocks in 2020 with the COVID pandemic and its impact on the global petroleum markets with prices collapsing to levels not seen for over 20 years. Nevertheless, Dana Gas has shown real resilience both from an operational as well as financial perspective.”