Chief exec highlights issue of overdue payment for supplies to Egypt, Iraqi Kurdistan
Dana Gas is owed about $600 million in overdue payments for fuel supplied to Egypt and Iraqi Kurdistan, the chief executive of the UAE-based company said on Thursday.
Delays in getting paid for operations in both Kurdistan and Egypt contributed to Dana becoming the first United Arab Emirates company to miss a bond redemption when it matured late last year.
The Egyptian government has struggled to keep up payments to several fuel suppliers since a popular uprising unseated President Hosni Mubarak in early 2011.
Cairo has been paying for some of the fuel that Dana produces in the Nile Delta for the domestic market but is not paying quickly enough to reduce the overall debt.
As a result, Dana has supplied about $290 million worth of gas which has not yet been paid for, of which $210 million is overdue, Dana Gas CEO Patrick Allman-Ward said.
"Egypt is going through a rough period right now, but it will come good," he said at a press briefing at the company's headquarters in Sharjah. "It's coming in, but it is not coming in quickly enough."
Payments due from the Kurdistan region of Iraq stand at around $430 million, of which between $380-390 million is overdue.
The Abu Dhabi-listed company completed repairs to its liquefied petroleum gas (LPG) facility at the Khor Mor field in Kurdistan in mid July, but it has not restarted production because no buyers have contracted supplies from it yet.
Dana Gas has been active in Kurdistan since April 2007 and the LPG production facility at Khor Mor was opened in early 2011.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.