Dana Gas shares surged 4.2% on Sunday as the oil price made gains prompting an increase in shares across the region.
The benchmark Abu Dhabi Securities Exchange General Index gained 1.4% to 4,695.34 points led by Dana Gas and Abu Dhabi Commercial Bank and Aldar Properties.
Brent crude futures, an industry benchmark, traded at $61.65 per barrel today but analysts warned of a downward correction.
The news of Dana’s shares increase came after the Egyptian prime minister Ibrahim Mahlab’s said on Thursday that the government would “soon” pay outstanding dues owed to the Sharjah-based energy company.
Beginning of February Dana reported a fourth-quarter loss of $4mn, which the company blamed on lower oil prices and a fall in the value of its oil and gas assets in Egypt.
The company made a net loss of $4mn in the three months to 31st of December down from a profit of $34.9mn a year earlier.
However, chief executive Patrick Allman-Ward told Reuters in a conference call that should oil prices recover, the company could reverse the $22mn impairment charge booked in the fourth quarter relating to its Egyptian assets.
In January Dana received a $60mn payment from the Egyptian government as part of its overdue $212mn dept leaving the outstanding sum of $152mn yet to be repaid.
