UAE-based Dana Gas, the Middle East’s largest regional private sector natural gas company, said its operations have been unaffected by the spread of the COVID-19 known as coronavirus.
Dana Gas, which has exploration and production assets in Egypt, Kurdistan Region of Iraq and UAE, said it has taken precautionary measures and contingency plans have already been put in place to safeguard personel and assets against the virus.
The company said it has robust operations and cash flows since a large part of its revenue comes from long term gas contracts rather than oil, whose price is largely uncorrelated to oil. This represents a natural hedge against low oil prices.
The company’s announcement follows a sharp rise in some countries of new virus cases. The global death toll has now crossed 3,000 with total cases above 90,000 with the majority still in China, where the virus originated.
Dana Gas posted its highest annual net profit in seven years of $157 million last year, compared to a net loss of $186 million in 2019. It’s cash balance stands at $425 million. The group’s average production was 66,200 boepd vs 63,050 boepd, a 5 per cent increase, led by an 18 per cent rise in KRI output.
Patrick Allman-Ward, CEO, Dana Gas, said: “The first two months of trading in 2020 has been robust despite the current unpredictable economic environment resulting from the coronavirus."
The company also said it has appointed an engineering, procurement and construction contractor for the first of two gas processing trains planned at the Khor Mor gas processing plant in the Kurdistan Region of Iraq.