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UAE-based Dana Gas saw its receivables edge up from $950mn at the end of 2015 to $982mn last year. Although its KRG receivables edged lower in 2016, the amount it is owed in Egypt rose from $221mn at end-2015 to $265mn at the end of last year, including a $23mn rise during the fourth quarter alone – a period during which other companies including BP (see p4 ) reported a sharp fall (see chart).
As such, having already frozen further investment in the KRG due to its huge receivables with arbitration ongoing it is now Egypt’s turn.
The firm has been accepting part-payment from Cairo in local currency, which it re-invests in paying local workforce and contractors ( MEES, 3 February ). But the firm took a hit after “taking a charge on the currency devaluation in Egypt,” Dana says – the firm seems to be taking a firmer accounting stance than the likes of Eni and BP who have seemingly been prepared to account for pounds payments in marking down their dollar-denominated receivables at the official exchange rate. (CONTINUED - 466 WORDS)
DATA INSIDE THIS ARTICLE
|chart||Dana Gas Receivables ($Mn, End Of Period)|
|chart||Egypt, Uae Gains Push Dana Gas To Year-On-Year Output Rise (‘000 Boe/D)|