Sunday, February 12, 2017

Dana Gas freezes investment in Egypt over delayed payments - ENTERPRISE

Sunday, 12 February 2017

Dana Gas says it is freezing investments in Egypt. The company will not inject new investments in the country because of delays in obtaining payments owed to it by the government, CEO Patrick Allman-Ward said, according to Reuters. 

Dana Gas says it is owed USD 265 mn as of the end of 2016, up from USD 221 mn by 2015’s end. "As uncertainty remains we must therefore be rigorous in balancing any additional capital investment in Egypt with actual collections," Allman-Ward said. 

His eyes are on the USD 5.5 bn Egypt raised through eurobond issuances and loans from the World Bank and African Development Bank, which he believes could be used to pay down debt owed to IOCs. Dana Gas recently announced it posted a USD 7 mn net profit in 4Q2016, down from USD 134 mn in 4Q2015.