GulfBase Live Support
Leave a message and our representative will contact you soon
04/05/2017 05:27 AST
Dana Gas said on Wednesday it would begin discussions to restructure its US$700 million Islamic bond maturing in October to shore up capital, although it may come at a higher price.
The Sharjah-based company has been plagued by outstanding arrears from Egypt and the Kurdish region of Iraq, amounting to nearly $1 billion. In a filing on the Abu Dhabi bourse, the company said that it must focus on capital for the short to medium term.
Dana Gas said it was addressing the way forward on the sukuk "in a practical manner that balances the interests of all stakeholders" with remaining profit payments addressed as part of the solution.
Dana Gas has invited sukuk holders to form a committee to represent them.
"Restructuring in the upcoming round is likely to be more costly for Dana Gas in terms of the coupon and pricing," said Sanyalak Manibhandu, head of research at NBAD Securities.
The company has been talking about rolling over the sukuk for several quarters as it continues to struggle to reduce trade accounts receivables. In its third-quarter earnings, Dana Gas said that the recovery rate in Egypt was only 64 per cent of billings, which was the lowest in five years.
Mr Manibhandu added: "The problem for shareholders is the fact that Dana Gas completed restructuring in early 2013 with respect to the $1bn sukuk that matured in October 2012."
However, he said that there could be some relief from production performance and settlement with trade debtors and the National Iranian Oil Company (NIOC) later this year.
NIOC signed a 25-year deal in 2001 to supply Crescent, which owns 21 per cent of Dana Gas, with 600 million cubic feet a day of gas by pipeline. The deal never materialised, prompting Crescent and Dana Gas to seek an arbitration case, which has been ongoing with the final ruling from The Hague expected this year.
Allen Sandeep, director of research at Cairo-based Naeem Brokerage, said that he expected the sukuk’s principal repayment would probably be extended by another five years. "However, it will be interesting to see the revised terms which could be subject to changes and amendments," he said, referring to profit rates and partial principal payments, among others.
Dana Gas said that it had also made other efforts to reduce costs to combat the low collection levels with a 43 per cent reduction in costs and a 7 per cent decrease in operational spending last year.
The company ended on a flat note in trading yesterday, closing at 44 fils in Abu Dhabi.
The National
28/03/2018
Dana Gas will seek shareholder approval to pay a dividend for 2017, it said on Sunday, in a move that could complicate its legal dispute with investors demanding that the company settles $700mn of Is
Gulf Times
27/03/2018
Dana Gas, the Sharjah company tangled in legal battles over the legality of its $700 million sukuk, said on Monday a UAE court has issued a new anti-suit injunction against BlackRock, the world’s big
The National
26/03/2018
Gulf stock markets were generally little changed on Sunday, though Abu Dhabi’s Dana Gas surged on news of plans for its first annual dividend for several years.
The Abu Dhabi index rose 0.
The Gulf Today
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
SAMBA | 26.98 | 1,138,683 |
DARALARKAN | 13.47 | 74,648,349 |
Ticker | Price | Change |
---|---|---|
PETRORABIGH | 25.42 | 0.41 (1.63 |
BAHRI | 31.56 | -0.29 (-0.92 |
TAQA | 0.85 | 0.00 (0.00 |
ADNOCDIST | 2.64 | 0.07 (2.72 |
ALDREES | 26.08 | -0.31 (-1.18 |
05/04/2018
SABIC announced the successful completion of the pilot operation of the Methyl Methacrylate Monomer (MMA) and Poly Methyl Methacrylate (PMMA) plants and the commencement of commercial operations.
Saudi Gazette
05/04/2018
Standard & Poor’s (S&P) has affirmed QIB’s Issuer Credit Rating at A-, Qatar’s leading Islamic bank has said in a release. According to S&P, the major contributing factors strengthening QIB’s rating
Gulf Times
05/04/2018
Qatar National Bank (QNB) aims to increase its profit by 5-8 percent this year and loans and investments by 10-12 percent, helped by expansion into faster-growing Southeast Asia markets, its CEO told
The Peninsula
04/04/2018
Doha Bank has announced the official inauguration of its Chennai Branch, in the southern Indian state, will be held today. This is Doha Bank’s third city in India after its successful establishment o
The Peninsula
04/04/2018
Bank of Sharjah said it has engaged SHUAA Capital International as liquidity providers for its shares and will commence the activity from April 4. SHUAA Capital International shall not hold more than
Gulf News