Sharjah-based Dana Gas swung to a net loss of $360 million in the third quarter, from a $2m net profit in the year-earlier period, weighed down by impairment costs related to its Egyptian assets.
Net revenue for the three months to the end of September fell to $52m compared with $65m in the year-earlier period, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares trade.
Dana Gas took a total non-cash impairment charge of $243m in relation to its Egyptian operating assets this year and a further $163m write-off relating to the sale of its onshore assets in Egypt.
The company sold its Egyptian assets in October to local firm IPR Wastani Petroleum ahead of the $309m payment it owed on its sukuk.
In the first nine months Dana Gas registered a net loss of $379m, compared with a net profit of $142m for the same period last year.
"The company’s performance has remained consistently strong over the first nine months of 2020 despite the current economic environment,” said Dana Gas chief executive Patrick Allman-Ward.
"We settled all of our sukuk obligation on schedule and have now further reduced our ongoing financing costs,” he added.
More to follow....