UAE's energy producer Dana Gas mulls sale of treasury shares

Board set to meet next week to consider proposal

UAE's Dana Gas building in Cairo.

UAE's Dana Gas building in Cairo.

REUTERS/Mohamed Abd El Ghany

UAE-listed Dana Gas, the largest private sector natural gas company in the Middle East, has confirmed it is considering some options to raise funds.

The energy company’s board of directors is scheduled to meet on March 21 to take up a proposal to sell treasury shares in the market, a bourse filing to the Abu Dhabi Securities Exchange (ADX) on Tuesday said.

No further details were disclosed regarding the plan.

The energy producer had earlier revealed plans to boost its capacity in the Kurdistan Region of Iraq (KRI). It is also moving ahead with its plans to prepare for the drilling of the next exploration well in Block 6 in Egypt. The company operates production and exploration assets in KRI, Egypt and the UAE.

Despite reporting a net loss of $376 million for 2020 on the back of impairments, the company maintained that it has remained resilient.

Patrick Allman-Ward, chief executive officer of Dana Gas, said last month that the firm is looking into financing options, including green bonds, to raise approximately $500 million to fund its output capacity expansion plans, according to a Reuters report.

(Writing by Cleofe Maceda; editing by Seban Scaria)

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