Islamic Finance 

UAE’s Dana Gas says has $434 million in cash after sukuk restructuring

| 14 November, 2018
UAE’s Dana Gas says has $434 million in cash after sukuk restructuring
A view shows UAE's Dana Gas building in Cairo November 2, 2012. REUTERS/Mohamed Abd El Ghany

NOVEMBER 14, 2018 | 2:50AM EST | DUBAI

United Arab Emirates producer Dana Gas said on Wednesday it had $434 million in cash as of end-September after completing the restructuring of its outstanding sukuk, or Islamic bonds, earlier this year.

Dana Gas reached a consensual restructuring agreement with its creditors in May after a protracted and complex legal dispute that began in 2017, when it halted payments on $700 million in sukuk saying the instruments had become unlawful in the UAE.

The company said in a statement on Wednesday that its cash position at the end of September stood at $434 million, down from $608 million at the end of 2017. It attributed the decrease to the completion of the restructuring, which involved a $235 million payment of principal, accrued profit, and other costs.

It also cited a dividend payment of $95 million made to shareholders in May.

The energy producer last month bought back $100 million of its sukuk, reducing the outstanding notes to $430 million. The buyback will save the company an annual $4 million in finance costs, it said.

Dana reported a net profit of $17 million in the third quarter of this year, against $102 million during the same period a year earlier.

However, net profit in the third quarter of last year included one-off income following a settlement in a court case with the Kurdistan Regional Government and interest on overdue receivables from that government.

Excluding those one-off items, net profit in the third quarter of this year rose to $17 million from $6 million a year ago, Dana said.

(Reporting by Davide Barbuscia; Editing by Sunil Nair)

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