Dana Gas posts profits despite default
Despite defaulting on an Islamic bond last year, Dana Gas, has posted a 20 per cent rise in profits
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Dana Gas, the Abu Dhabi-listed energy firm which defaulted on an Islamic bond, said yesterday its full-year net profit for 2012 rose 20 per cent on the back of higher oil prices and lower costs says Reuters.
Dana's 2012 net profit rose to $165mn from the $138mn it posted in 2011, the company said in a statement.
The company, hit by delays on payments for its supplies of natural gas to Egypt and Iraq's Kurdistan region, reached an agreement with creditors in December to amend terms of a $920mn Islamic bond, which it had failed to pay at maturity in October.
"With the agreement with the sukuk-holders announced, the focus now is on receivables collection, boosting the management team, and realising the value of the assets through an international listing," Crescent chief executive Majid Jafar, who is also a board member of Dana, told Reuters by phone.
Dana, in which Crescent Petroleum has a 20 per cent stake, said it collected $301mn from its share of receivables in Egypt and Kurdistan region of Iraq in 2012.
The company's cash balance rose by 47 per cent to $165mn by the end of last year, while total assets reached $3.5bn at the end of December.
Dana Gas, which has operations in the UAE, Egypt and Kurdistan, made quarterly profit of AED114mn, according to Reuters calculations. It had profit of AED147mn in the year-ago period.
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