UAE's Dana Gas 2021 collections get a boost as Egypt, Kurdistan pay off dues
Kurdistan Region of Iraq cleared 2019 dues as well while Egypt paid $48m in December
Dubai: The privately-owned Dana Gas has received all of the payments due from the authorities in Kurdistan Region of Iraq (KRI), and which has led to a significant increase in its 2021 collections. The dues from KRI relate to payment obligations from 2019 and 2020.
This meant that Dana Gas collected $184 million from KRI through selling condensates, LPG and gas last year, against $102 million the year before.
In Egypt, Dana Gas – the Middle East’s biggest natural gas company that is privately held - collected $193 million compared to $80 million in 2020,. The payments from the government helped reduce the company’s receivables from Egypt to under $20 million - the lowest level since Dana Gas commenced operations in the country in 2007. The total collections from Egypt in 2021 include a $48 million payment made by the Egyptian government in December.
According to Dr. Patrick Allman-Ward, CEO, “We are extremely pleased by the strength of our collections in 2021, which have been enhanced by the rise in oil prices. The decrease of receivables in Egypt to the lowest level since 2007 and the payment of past outstanding receivables in the KRI further strengthened the balance-sheet that allowed us to make an additional interim dividend payment of 3.5 fils per share, approved at the General Meeting on the 9 December.
“This record levels of collections has also provided us with the confidence to pursue our investment plans in both the KRI and Egypt supported by higher hydrocarbon prices and an improving macro-economic environment.”
Higher energy prices have a positive impact on the realized prices of the products sold by the company and hence its profitability