By Sam Bridge
Natural gas company says precautionary measures and contingency plans have already been put in place to safeguard personel and assets
UAE-based Dana Gas, the Middle East’s largest regional private sector natural gas company, on Monday said its operations have been unaffected by the spread of the new coronavirus, known as COVID-19.
In a trading update to shareholders, Dana Gas said 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 comments comes as the global death toll from the new coronavirus epidemic surpassed 3,000 after dozens more died at its epicentre in China and cases soared around the world.
The virus has now infected more than 89,000 people and spread to over 60 countries after first emerging in China late last year.
Dana Gas posted its highest annual net profit in seven years of $157 million last year with its cash balance at $425 million.
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.