Dana Gas swings to net profit in 2017 boosted by settlement with Kurdistan Regional Govt

United Arab Emirates energy producer Dana Gas swung to a net profit of $83 million in 2017 after a $1 billion payment as part of a settlement with the Kurdistan Regional Government (KRG). However, Dana posted a net loss of $42 million in the fourth quarter of last year. Profits in the fourth quarter were affected by an impairment charge of $34 million against the Zora gas field in the United Arab Emirates. Dana, which has struggled to collect receivables from Kurdistan and Egypt over the past four years, collected $466 million from the KRG and $164 million from Egypt last year. Dana’s cash balance at the end of 2017 amounted to $608 million, more than double the $302 million it had at the end of 2016. Dana Gas is at the centre of a legal dispute with the holders of a $700 million sukuk that the company refused to redeem on the grounds that the notes were no longer sharia-compliant. Legal proceedings in English and UAE courts are continuing.