Dana Gas says cash owed by customers doubled to US$501m

Sharjah-based firm has US$1bn in Islamic bonds maturing this October

Dana Gas says money owed by customers doubled in 2011.

Dana Gas says money owed by customers doubled in 2011.

Dana Gas, which has US$1bn in Islamic bonds maturing in October, said money owed by customers almost doubled last year.

Total trade and other receivables climbed to US$501m from US$255m in 2010, the Sharjah, UAE- based company said in its consolidated financial statement to the Abu Dhabi bourse today. Dana Gas said US$212m of the total was owed for more than four months.

Dana Gas said in January its 2011 profit advanced to US$138m from US$43m a year ago, helped by higher production and prices.

Dana Gas shares have dropped 20 percent in the past year on concern it won’t have enough money to repay a US$1bn Islamic bond due in October. The company said January 17 it would meet debt obligations and has appointed a financial adviser.

Dana Gas may restructure the debt, Bank of America Corp. said in a report on January 24, cutting the shares to “underperform.” The company may restructure the sukuk at 61.5 percent to their par value, investment bank Exotix said in a report in January.

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