Dana Gas distributes first dividend worth Dh348 million

The UAE energy producer said in June that a large majority of holders of its outstanding $700 million had consented to a proposed restructuring of the notes.

Sharjah-based Dana Gas has paid the first dividend of $95 million (Dh348.65 million) and plans to pay out more dividends in future, it said in a statement on the Abu Dhabi bourse.

"We were able to pay our first dividend of $95 million, which is five per cent of the listed shares. We have plans to pay out future dividends. But as per the contractual obligations in relation to the new sukuk, the maximum we are allowed to pay out is 5.5 per cent," said the statement, quoting its CEO Patrick Allman-Ward.

The UAE energy producer said in June that a large majority of holders of its outstanding $700 million had consented to a proposed restructuring of the notes. It had received approval of 93.69 per cent of holders for the terms of the proposed restructuring, exceeding the minimum required 75 per cent threshold.

The company, which last year refused to repay creditors because it claimed its sukuk was no longer Shariah-compliant, recently reached a restructuring deal after a long legal battle.

Its first-half profits rose four per cent year on year to Dh88 million. The company posted second-quarter net profit of $10 million (Dh36.7 million), $2 million lower due to the one-off sukuk restructuring costs.

Dana Gas said it would be able to distribute dividends without restriction following the paydown of the sukuk.

Commenting on the National Iranian Oil Co (NIOC) dispute, Dana Gas expects a final judgement on the amount of damages expected to be made by the tribunal by the end of October.

Dana Gas said it was not a direct party to the arbitration. Crescent Petroleum began the arbitration proceedings in 2009. The tribunal ruled in favour of Crescent Petroleum in August 2014 and that NIOC had been in breach of its contractual obligations since 2005. Following this judgement, hearings took place in 2016 and 2017 to decide on the amount of damages NIOC should pay in compensation, including to Dana Gas.

- waheedabbas@khaleejtimes.com