Abu Dhabi – Mubasher: The preliminary financials of Dana Gas registered net losses after tax of AED 1.4 billion ($376 million) in 2020, against net profits of (AED 575 million ($157 million) in 2019. 

The losses were attributed to the sharp decline in oil prices and associated coronavirus (COVID-19) impact; hence, the group recognised impairments of AED 1.5 billion ($412 million) in respect of the sale of Dana Gas Egypt onshore assets.

The company generated revenues of AED 1.27 billion ($349 million) last year, down from AED 1.68 billion ($459 million) in 2019, driven by a decline in prices and production in Egypt.

Dana Gas produced an average of 63,200 barrels of oil equivalent per day (boepd) in 2020, down 5% from 66,200 boepd in 2019.

The CEO of Dana Gas, Patrick Allman-Ward, 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."

Allman-Ward remarked: "In 2021, we aim to advance the development of our world-class assets in the KRI, where over 90% of Dana Gas’s proven reserves of over 1 billion boe are located, while concurrently moving ahead with our plans to prepare for the drilling of the next exploration well in Block 6 in Egypt, which holds exciting, material upside potential."

It is noteworthy to mention that during the first nine months of 2020, the company recorded AED 1.39 billion net losses, against net profits of AED 521 million in the corresponding period of 2019.