Crescent Petroleum Co., Dana Gas PJSC (DANA)’s biggest shareholder, has no plan to provide cash to the United Arab Emirates-based natural gas producer to help pay a $1 billion Islamic bond due in October.
Any “speculation around Crescent injecting further capital to support the Dana Gas sukuk is incorrect,” Majid Jafar, Sharjah-based chief executive officer of Crescent, said in a phone interview yesterday. Dana Gas “is facing external macro- economic and political events outside its control” in Iraq’s Kurdistan region and in Egypt, which have led to unpaid bills, and “these are the economic realities that all the stakeholders need to take into account,” he said.
Concern that Dana Gas will default drove up yields on the 7.5 percent notes by 24 percentage points this month to 91.8 percent at 11:23 a.m. in Dubai, according to data compiled by Bloomberg. The company will be unable to repay the sukuk and there is high probability the liability will be reorganized, investment bank Exotix Ltd. said in a research note May 10.
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