Dana Gas Net Slips as Outstanding Payments Rise in Egypt, Iraq

Dana Gas PJSC (DANA), an oil and natural gas producer forced to restructure debt last year, said third-quarter profit fell 2 percent as higher royalties and faster depreciation at assets in Egypt slowed growth.

Third-quarter net income slipped to 102 million dirhams ($28 million), from 104 million dirhams a year earlier, Dana Gas said in a statement today to the Abu Dhabi stock market. Gross revenue gained 21 percent to 623 million dirhams. The amount of cash the company is owed for past sales in Egypt and Iraq rose.

Dana Gas, based in the United Arab Emirates sheikhdom of Sharjah, changed terms on about $1 billion in Islamic bonds, or sukuk, last year after the Egyptian and Iraqi governments delayed payments for fuel. These receivables and the global financial crisis hampered its efforts to refinance.

The company said it was owed 2.78 billion dirhams in total trade receivables. In Egypt, it was owed 1.09 billion dirhams at the end of September, up from 960 million dirhams at the end of June. In Iraq, where Dana Gas operates in the semi-autonomous Kurdish region of the country’s north, trade receivables grew to 1.65 billion dirhams at the end of September from 1.47 billion dirhams at the end of June.

Production of oil, gas and other fuels increased 17 percent in the third quarter to an average of 66,850 barrels of oil equivalent per day compared with the same three months of 2012, Dana Gas said.

To contact the reporter on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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