Dana Gas (DANA) is riding that collections high, as the Middle East’s largest non-government natural gas company saw its revenue inflows from Iraqi Kurdistan (KRI) and Egypt annually grow by 102%. Collections since the start of the year have now reached $256m, as of the end of September.
The sudden increase comes due to the rise of oil prices recently as the global economy has seen a resurgence in economic activity. This has driven not just oil but also other commodities linked to it, such as natural gas and liquefied petroleum gas — which Dana Gas produces. Breaking the company’s gains down, collections from the KRI region were slightly higher at $131m, with the remainder $125m coming from Egypt. It’s a welcome boost for the firm after a recent legal dispute with an Iranian energy producer came to a close last month, resulting in Dana Gas being paid $608m as compensation.
why it matters
Collections might be up but Dana Gas’ stock was down by 1.9% at market close yesterday. Share price might not be the company’s metric of interest, though. Oil prices, from which the company derives its revenues, hit a 7-year high on Tuesday.