SHARJAH, Dana Gas has announced that its collections from the KRI and Egypt rose 107% year-on-year in 2021 to $377 million (AED1.38 billion) from $182 million (AED 667 million) in 2020, enhanced by a strong rebound in oil prices, an accelerated pace of payments from Egypt and the settlement of past outstanding KRI receivables.
Dana Gas, which owns a 35% interest in Pearl Petroleum, saw its share of collections from sales of condensate, LPG and gas in the KRI rise 80% to $184 million (AED674 million) in 2021 versus $102 million (AED374 million) in 2020. This increase follows the full repayment of past outstanding receivables from 2019 and 2020.
Meanwhile in Egypt, Dana Gas collected $193 million (AED707 million) during 2021, compared to $80 million (AED293 million) in 2020, a 141% year-on-year jump. The payments from the government of Egypt have reduced the Company’s receivables from the North African state to under $20 million (AED73 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 (AED176 million) payment made by the Egyptian government in December.
Dr. Patrick Allman-Ward, CEO of Dana Gas, said, “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 Company’s balance sheet that allowed us to make an additional interim dividend payment of 3.5 fils per share that was approved at the General Meeting on the 9th 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. As we start 2022, we will remain focused on profitably growing our business whilst maximising shareholder value.”
Source: Emirates News Agency