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Dana Gas collects $73.7 million from Egypt, Kurdistan

Published: Updated:

Dana Gas has collected a total of $73.7 million in receivables from its operations in Egypt and the Kurdistan region of Iraq in 2013, the UAE-based company said on Sunday.

Delays getting paid for supplies of natural gas to Egypt and Kurdistan forced the company to restructure its debt late last year, after it failed to pay a $920 million Islamic bond on maturity in October.

The overdue payments collected so far this year are equal to about 12.5 percent of the $589 million total outstanding receivables still owed to Dana at the end of 2012.

"We are pleased to see that our strategy and efforts for addressing our receivables position in Egypt and the Kurdistan Region of Iraq is yielding results," Rashid Al Jarwan, acting chief executive of Dana Gas, said in a statement.

Dana collected around $163 million receivables from Egypt last year. But receivables from gas supplied in Egypt still rose from $228 million at the end of 2011 to around $236 million at the end of 2012, according to Dana's latest results.

Egypt paid Dana $41.3 million in January for gas supplied but not paid for, largely due to political upheaval in the North African country since 2011. Talks with Egyptian authorities for the swift repayment of the rest are ongoing, Dana said in the statement to the Abu Dhabi stock exchange.

Kurdistan Regional Government (KRG) debts to Dana for fuel supplied stood at around $353 million at the end of 2012, up from around $240 million at the end of 2011.

Dana collected $32.4 million of that in January, following a $48 million payment by the KRG to Dana in December 2012, it said.

The Sharjah-based energy firm said on Sunday that it was on track to complete the refinancing of the sukuk in the second quarter of 2013.

It postponed a shareholder vote on restructuring the sukuk to April 23, after a meeting on March 24 failed to meet the required quorum.

The company also said it was on track with its Zora gas project, which is 33 km off the coast of Sharjah, and would begin drilling in the third quarter.

Zora is expected to be fully operational in 2014 and produce around 60 million cubic feet (1.7 million cubic metres) per day.