Dana Gas, one of the region’s largest private sector natural gas companies, said its payments from operations in Egypt and the Iraqi Kurdistan region have increased by more than 100% in the first nine months of the year.
Collections jumped to $ 256 million for nine months through September, from $ 127 million for the same period in 2020, boosted by higher oil prices, the company said in a statement in Abu Dhabi on Wednesday. Securities Exchange, where its shares are traded.
Brent, the benchmark under which more than half of the world’s oil trades, rallied last week and was trading at $ 82.56 at 11:41 am UAE time. West Texas Intermediate, the gauge that tracks US crude, gained 0.41% and was trading at $ 79.25. Both benchmarks have gained about 60 percent since the start of the year.
The increase in collections this year has been “supported by a strong rebound in commodity prices,” said Patrick Allman-Ward, managing director of Dana Gas.
“The continued payment of invoices on time and the settlement of unpaid debts are essential to give us the confidence to continue our expansion plans in KRI and Egypt. “
Oil prices rebounded as demand for crude surged in the wake of a strong recovery in the global economy, which collapsed into its deepest recession since the 1930s amid the pandemic. The global economy is expected to grow 6% this year, according to the International Monetary Fund, which is due to update its forecast next week.
Despite the spread of the Delta coronavirus strain, demand for oil in 2021 is expected to increase by 6 million barrels per day, with global consumption reaching 96.7 million barrels per day, according to Opec data released in September.
The group of oil producers expects demand for 2022 to exceed pre-pandemic levels, reaching 100.8 million barrels per day.
Dana Gas, which owns a 35% stake in Pearl Petroleum, saw its share of collections from condensate, LPG and gas sales in KRI jump 77% to $ 131 million in the period nine. month, up from $ 74 million the previous year. .
In Egypt, the company raised $ 125 million in the first nine months of this year, a big increase from the $ 53 million received for the same period in 2020, he said.
An international arbitration tribunal awarded Dana Gas $ 607.5 million in damages in a case against the Iranian state-owned energy producer, the company said in September.
The dispute concerns a 25-year gas purchase and sale contract between Crescent Petroleum, a subsidiary of Dana Gas, and National Iranien Oil Company.
The company reported second quarter net profit thanks to operational efficiency and rebounding crude prices, and posted three-month net profit of $ 113 million at the end of June after reporting a loss of $ 36 million. dollars over the same period last year.
Update: October 6, 2021, 8:29 a.m.