Dana Gas moves to take heat out of $1 billion debt fears

Dana Gas shares recovered on today after the UAE gas explorer and producer said it will honour obligations related to a $1 billion sukuk due in October.

Dana jumped 5.8 per cent in mid day trading on the Abu Dhabi Securities Exchange to 36 fils. The shares declined by more than 15 per cent  on Sunday and Monday amid investor worries.

"Dana Gas over the last four years has timely and consistently paid on or before the due date the sukuk profit amount and will continue to do so pursuant with its obligations," the company said in a statement to the Abu Dhabi Securities Exchange.

"Dana has been proactive in taking the initiative to mandate advisors including an international financial advisor and will update the market with its plans in good time and due course."

Egypt, which has experienced slower economic growth since the ouster of Hosni Mubarak from the presidency last February, owes Dana Gas about $200 million from natural gas sales.

Dana Gas is in "discussions with the Egyptian Government covering the delayed payments due from government owned entities owing to the unrest in that country over the past year."

The ADX General Index declined 0.4 per cent to 2315.35 points, while the DFM General Index added 0.3 per cent to 1305.50 points.

Elsewhere in the region, Kuwait's index added 0.3 per cent to 5782.90 points. Bahrain's measure was little changed at 1142.36 points. Oman's MSM 30 Index was little changed at 5633.12 points. Qatar's QE Index declined 0.2 per cent to 8618.65 points. The Saudi Tadawul All-Share Index lost 0.3 per cent to 6397.95 points.