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UAE-based energy firm Dana Gas said its collections from sale of condensates in 2021 in the Kurdistan Region of Iraq (KRI), and Egypt, have more than doubled year-on-year to 1.38 billion dirhams ($377 million) from 667 million dirhams in 2020.
The jump was due to a strong rebound in oil prices, quicker payments from Egypt and the settlement of past outstanding KRI receivables, the Sharjah-based company said in a statement on Thursday.
Dana Gas, which owns a 35 percent stake in Pearl Petroleum, saw its share of collections from sales of condensate, LPG and gas in the KRI jump 80 percent to $184 million in 2021 compared with $102 million in the previous year. This increase follows the full repayment of past outstanding receivables from 2019 and 2020.
In Egypt, Dana Gas collected $193 million during 2021, compared with $80 million in 2020, representing a 141 percent 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, the lowest level since it began operations in the country in 2007.
The total collections from Egypt in 2021 included a $48 million payment made by the Egyptian government in December, the company said.
Patrick Allman-Ward, CEO of Dana Gas, said the company will pursue its 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,” he said.
Dana Gas is 5th largest gas producer in the country. The company approved an additional interim dividend payment of 3.5 fils per share in December.
(Reporting by Brinda Darasha; editing by Seban Scaria)
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