Abu Dhabi's Dana Gas CEO To Retire In September

Sunday, Apr 29, 2012

DUBAI (Zawya Dow Jones)--The chief executive of Dana Gas (DANA.AD) intends to retire in September, the Abu Dhabi-based company said.

Dana, which has found itself in the spotlight over the past few months due to lack of clarity on its refinancing plans for an impending $1 billion Islamic bond, said Ahmed Al-Arbeed will retire full-time executive responsibilities in September.

A board committee was formed to oversee the search for qualified candidates to replace him, Dana said in a statement posted on the Abu Dhabi bourse website Sunday, following the company's annual general meeting that was held Thursday.

"We look forward to strong performance in 2012, during which our prime focus will remain on growing our cash flows and maximising shareholder value. We plan to steadily build our asset base, albeit prudently managing our financial resources in light of regional and global circumstances," Al-Arbeed said in the statement.

The company in January posted a fourth-quarter net profit of 147 million U.A.E. dirhams ($40 million), up from AED59 million a year earlier, on the back of growing production, higher realized oil prices and optimized cost management in 2011.

Dana Gas shares have however remained under pressure in the past few months amid market speculation about its ability to refinance a $1 billion convertible sukuk due in October.

Dana Gas continues to drag its heels in announcing its refinancing plans for its impending sukuk, noted an analyst at EFG Hermes. "Having firmly established operations now in Egypt and Kurdistan, a new CEO could take the business forward to the next stage of its maturity/development in both of these countries, in addition to new projects outside of these existing operations," EFG said in a client note.

Dana Gas shares last traded down 2.1% at AED0.46 on the Abu Dhabi market. The stock is down some 15% since early November.

-By Nikhil Lohade, Dow Jones Newswires; +9714 446-1694; nikhil.lohade@dowjones.com

(END) Dow Jones Newswires

29-04-12 0728GMT