UAE's Dana Gas says still 'competitive' despite oil price rout

UAE-based Dana Gas on Thursday said it remains competitive despite the recent slump in oil prices caused by the new coronavirus and a price war between Saudi Arabia and Russia.

The board of directors of Dana Gas will recommend to shareholders next month the distribution of an AED5.5 fils per share cash dividend for 2019.

The company posted its highest annual net profit in seven years of $157 million compared to a net loss of $186 million in 2018.

Patrick Allman-Ward, CEO of Dana Gas, said: "This is our third consecutive year where we have delivered positive operational and financial results. Throughout 2019, we have added to our production and strengthened our operations, making us more resilient to the tough trading conditions the oil industry is facing currently.

"Since half of Dana Gas’ income is protected in low oil price environments, we are competitive and opportunistic at the current environment," he added.

Oil prices plunged about six percent Thursday after US President Donald Trump announced a 30-day ban on all travel from Europe to the United States over the coronavirus pandemic.

West Texas Intermediate slipped 6.2 percent to $31 a barrel while Brent crude was off 5.8 percent at under $34 a barrel.

Both contracts extended heavy losses from a day earlier, which came after Saudi Arabia and Gulf partner the UAE stepped up a price war by vowing to pump millions more barrels of crude.

Crude markets have been in turmoil since the start of the week, when they suffered their biggest one-day drop in a generation after Riyadh slashed prices following a row with Moscow about output cuts.