Dana Gas on Monday revised down its unaudited preliminary results for 2016 to a net loss of US$88 million from the net profit of $33m 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 Gas said the court ordered the KRG to pay $121m to a consortium including it for condensate and liquefied petroleum gas.
On Monday, however, Dana Gas said the tribunal had also found that Pearl Petroleum, 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 2 per cent. Previously, Dana Gas had calculated its own share of overdue receivables under different assumptions.
The change reduced the unrealised interest recorded on Dana Gas’ books, causing a one-time adjustment of $121m, 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.
* Reuters
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