Dana Gas Gets $20M from Egypt, Plans to Invest Again
Dana Gas, an energy company from the UAE, said it received $20 million from the Egyptian government, making a total of $24.5 million in payments for the last quarter of 2024.
Using the Money
The company will use this money to support its current projects in Egypt and continue with its planned investments. This is an important step for its work in the region.
The investment plan is part of an agreement that will be officially signed soon, according to Dana Gas.
This deal, approved by Egypt’s Parliament in June, is part of the government’s plan to strengthen the energy sector and increase gas production in the country. Dana Gas also mentioned it will need regular monthly payments from Egypt to finish all parts of the program.
Important Statement
“This payment will be used in Egypt to increase local gas supply, create economic benefits, and save money for the country,” said Dana Gas CEO Richard Hall. “We are now focused on starting the program to boost production and reserves. Future payments will be essential for completing the next steps of the program. The latest payment from the Egyptian Government has also reduced what the company is owed and improved our cash flow. With this better financial position, we can think about restarting sustainable dividend payments to our shareholders.”
Key Fact
The new program includes drilling six exploration wells and five development wells. This is expected to add 80 billion cubic feet of gas and greatly increase the value of the company’s assets in Egypt. It will also extend the lifespan of these assets and save Egypt over $1 billion by reducing the need to import liquefied natural gas (LNG) and mazut for electricity.
Financial Results
Dana Gas reported an 11.3% drop in net profit for the first nine months of the year, earning $111.6 million due to lower gas prices and reduced production in Egypt. Revenue for the same period also fell by 12.3%, from $325.4 million last year to $285.3 million this year.
Published: 12th December 2024
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