UAE’s Dana Gas revises 2016 results down to net loss of $88 million
* Company revised down its unaudited preliminary results for 2016
* Stock has technical support at 0.45 dirham, this month’s low hit after company reported sharp drop in fourth-quarter net profit
* Abu Dhabi index edges down 0.1 per cent
United Arab Emirates-based Dana Gas on Monday revised down its unaudited preliminary results for 2016, to a net loss of $88 million, from the net profit of $33 million which it had previously reported.
Dana cited the result of a ruling by London’s Court of International Arbitration earlier this month in its dispute with the Kurdistan Regional Government (KRG).
Last week, Dana said the court ordered the KRG to pay $121 million to a consortium including it for condensate and liquefied petroleum gas.
On Monday, however, Dana said the tribunal had also found that Pearl Petroleum Co, in which Dana Gas has a 35 per cent stake, was entitled to interest on overdue receivables from the KRG at the London interbank offered rate plus two per cent.
Previously, Dana had calculated its own share of overdue receivables under different assumptions.
The change reduced the unrealised interest recorded on Dana’s books, causing a one-time adjustment of $121 million, although the adjustment is a book entry which does not have any impact on the company’s actual cash flow for 2016 or cash balance, the company said.