Dana Gas weakens on refinancing concerns

Dana Gas shares fell over 2 per cent on the Abu Dhabi bourse yesterday after the energy company failed to provide further details on new acquisitions in the UAE and Egypt as well as its 3 per cent stake in MOL Nyrt, Hungary's biggest refiner. Yields on Dana Gas's Islamic bond also surged to record levels yesterday in the face of speculation about how the company is planning to pay a $1 billion sukuk due in October 2012 "We would have expected something from the management on the refinancing of the sukuk," Atul Gharde, a Hong Kong-based analyst at SJS Markets, told Bloomberg by email. "But times are difficult for them, especially since political tensions in Iraq and Egypt continue to negatively impact the company." But Waddah Taha, financial and market analyst at Zarouni Group, told Gulf News that the company was in good shape. "The financial position of the company is very strong," Taha said. Marwan Shurrab, vice-president and chief trader at Gulfmena, told Gulf News: "Dana Gas board seems to be having consultations on how to handle liabilities which are due to be paid in October 2012."