Dana Gas reports strong growth base
Posted: 07 April 2008
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Dana Gas, the Middle East ’s first regional private sector natural gas company, has reported business growth after reviewing key milestones achieved by the company in 2007.
The review was held during its 2nd Annual General Meeting (AGM) on Sunday, attended by the company Board of Directors and shareholders. The outlook for 2008 was also summarized.
According to the company, staff grew to over 400 professionals in a network of offices across the Middle East and worldwide a small team in Sharjah. The year also witnessed a rise in world oil prices, and a growing interest shown by international investors in the energy sector of the Middle East Region.
“With oil prices now over $100 per barrel and increasing interest in the energy sector worldwide and especially our region, Dana Gas is the only publicly-listed gas resource company in the Gulf, and has already established strong positions in the UAE, Egypt and Iraq, in all areas of the natural gas business - from exploration and production, to processing and pipeline transmission, and through to gas marketing and downstream projects," said Hamid Jafar, Executive Chairman of Dana Gas, in his report to the AGM on behalf of the Board of Directors.
The company highlighted achievements such as highly successful $1 billion Convertible Sukuk issue; the signing of a major agreement for development of the Sharjah Western Offshore Concession; rapid progress in developing two of Iraq’s major gas fields in the Northern Kurdistan Region for supplying local power needs; historic commercial oil discoveries in Southern Egypt as well as natural gas and condensate discoveries in the Nile Delta, which has exceeded the company’s 2007 production goals.
Further, it is also finalising readiness for the transportation and processing of imported natural gas in the UAE; the formation of a joint venture with Emarat of the UAE to own, manage and operate the Middle East’s first common user gas pipeline; the announcement of a strategic co-investment agreement with the Arab Petroleum Investments Corporation (Apicorp); and a strategic alliance with leading private equity firm Abraaj Capital to jointly invest in natural gas projects, the company said.
Dana Gas ended the year in a healthy financial position, with revenues in excess of Dh 1 billion, cash from operations of Dh 478 million, and total assets grown by 59% from the previous year, to Dh 10.8 billion.
The company’s share price rose by 72% over the previous twelve months, outperforming the market index.
The company also presented its growth plans and outlook for the coming year:
“For 2008, Dana Gas aims to build on the strong foundations of 2007. In addition to the expected start-up of operations and revenues from both the import of Iranian gas and the Kurdistan region’s gas projects by the middle of this year, the company is also implementing an active $170 million drilling campaign of 19 new wells in Egypt, where we hope to increase our gas reserves to significantly increase production, and take full advantage of high energy prices,” reported Executive Chairman Hamid Jafar.
“In addition to our major investments and expansions in Egypt, Northern Iraq, and here in the new concession offshore Sharjah, we will also be expanding our unique concept of developing ‘Gas Cities’ in other countries of the Region, and pursuing further opportunities and acquisitions currently under active study in the Gulf Region and in North Africa,” Jafar said.
The AGM also approved the audited accounts for the period ended December 31, 2007 , and the auditors' report. |
