Dana Gas, the Middle East’s largest regional private sector natural gas company, today held its 9th Annual General Meeting (AGM), in which the shareholders were presented with and approved all proposed resolutions, including the financial results and financial statements, together with the Auditors report for the year ended 31 December 2014. The meetings was chaired by Dr. Tawfeeq Al Moayed – Vice Chairman and elected a new 12-member Board of Directors for the coming 3-year term.
The shareholders thanked the outgoing members of the Board of Directors, including Chairman Dr. Adel Al-Sabeeh, and Vice-Chairman Dr. Tawfeeq Al-Moayed, for their leadership and service to the company during challenging times including successful refinancing of the Sukuk and strengthening the operational and financial position of the company despite the instability in many countries of operation during that time.
The new Board elected as its Chairman Mr. Hamid Dhia Jafar and as Vice-Chairman Mr. Rashid Saif Al-Jarwan, with new additions to the Board including HE Mr. Hani Abdulaziz Hussein, former Oil Minister of Kuwait and former CEO of Kuwait Petroleum Corporation, and Ms. Fatima Obaid Al-Jaber, Chief Operating Officer of Al-Jaber Group in Abu Dhabi.
During the AGM, shareholders were given an overview of the Company’s financial and operational achievements in 2014. Dana Gas posted full year gross revenue of $683 million despite the fall in oil prices; improvement of $10 million in operating profits and delivered net profit of $125 million. Group production rose by 6% to average 68,900 barrels of oil equivalent per day (boepd) or 25 million boe over the year (boepa). Egypt’s production was higher by 9% and averaged 39,900 boepd (14.6 million boepa) and the KRI was up 3% to 28,500 boepd (DG share) or 10.4 million boepa respectively.
In the Kurdistan Region of Iraq, Company was permitted to commence local sales as of September 2014 and this resulted in $ 34 million of collections, of which $18 million was a guarantee against future lifting of product. The UAE Zora Project is on track for ‘first gas’ by mid-year 2015. Production from this field is expected to add around 40 mmscfd of natural gas to the Company’s daily production.
Dana Gas CEO, Dr. Patrick Allman-Ward, commented on the achievements of the year: “The operational and financial achievements of 2014 are testament to the refocussing that Dana Gas has undertaken over the last three years on delivering operational excellence and lowering costs. In addition the Company has positioned itself for significant growth opportunities through the acquisition of material new exploration opportunities, as the role of the natural gas sector in meeting the MENA Region’s energy needs continues to increase.”
The Board also updated the shareholders of the ongoing arbitration with the Kurdistan Regional Government including the recent hearing held in April 2015, which considered certain selected issues for final award. The shareholders were also advised that in the arbitration with German company RWEST, the Tribunal held that RWEST’s breaches of the confidentiality agreements had harmed Dana Gas’s and Crescent Petroleum’s interests in the KRI.
The quantum of damages will be determined during a second stage expected to commence during the second half of 2015. And in relation to the UAE Gas Project, the company had last year notified the market that the Arbitration Tribunal has issued a Final Award on the merits in August 2014, determining that the 25-year Contract between Crescent Petroleum and NIOC is valid and binding upon the parties and that NIOC has been in breach of its obligations to deliver gas since December 2005. The damages quantification phase of the arbitration process has since also commenced.