The splitting of UAE's Dana Gas upstream and midstream businesses off from each other has gotten the greenlight from shareholders.
In a statement, Dana Gas said that: "A feasibility study to separate the Company’s Upstream and Midstream businesses in a demerger was given the green light by shareholders.
Following the split, there would be two companies listed on the Abu Dhabi Stock Exchange. The upstream business would have assets in Iraq’s Kurdistan and Egypt, while the midstream business would have a gas project in the United Arab Emirates, which is currently awaiting arbitration decision/award.
Hamid Jafar, Chairman of Dana Gas, said: "We are also looking at enhancing shareholder value separating our Upstream and Midstream assets in a demerger. I would like to extend my gratitude to our shareholders for their continued support for the Company and their confidence in the growth potential of Dana Gas.”
Dana posted a net profit of $157 million for 2019, he said, the highest for seven years, versus a net loss of $186 million in 2018. It had $425 million in cash at the end of the year, versus $407 million at the end of 2018.
Jafar added: "During 2019, we were able to add to production and strengthen our operations, making us more resilient to the difficult global economic environment. The fact that the majority of our natural gas contracts are at fixed prices helps us remain competitive and will allow us to capitalise on any opportunities."