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Wednesday, 15 August 2018

Dana Gas says fresh investments in Egypt delayed over unpaid arrears

Dana Gas says fresh investments in Egypt delayed over unpaid arrears: Egypt’s irregular repayments of its arrears to Dana Gas is putting a damper on the company’s investment plans in the country, the company said in its earnings release yesterday (pdf). “Due to the lack of regular and predictable payment the Company will continue its strategy of balancing its investments in Egypt against its collections in the near term,” according to the release.

Egypt repaid the company USD 89 mn in overdue arrears in 1H2018, bringing its total trade receivables from Egypt reached USD 202 mn as of 30 June 2018. This includes USD 120 mn which is overdue, according to S&P Global.

Dana Gas is not planning to take legal action against Egypt but is “in discussion with the government to make it clear to them that the sooner they pay us the sooner we would reinvest the money back into Egypt,” Dana Gas CEO Patrick Allman-Ward told reporters yesterday, according to The National. There is no dispute between Egypt and the company, and the issue “is about [Egypt’s] capacity to pay,” he added. Allman-Ward had previously said that his company would spend USD 47 mn in capex in Egypt this year, “but any new investments will be made only if the country pays some of the money it owes.”

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