Dana Gas expects to complete its sukuk (Islamic bond) refinancing by the end of the second quarter, having collected $73.7m in receivables this year from Egypt and the Kurdistan region in Iraq.

The Sharjah-based company received $32.4m from the Kurdistan Regional Government (KRG) and $41.3m from Egyptian authorities.

Dana Gas missed the repayment on its $1bn sukuk that matured in October 2012 after delayed payments by Egypt and the KRG. The company is proposing refinancing the debt with two new sukuk issues, each worth $425m.

A shareholder meeting to approve the refinancing is set for 23 April, the third time the company will try to get a quorum to vote on the plan.

“Collection is always going to be challenging to say the least - it will come in lumpy unless underlying [political] circumstances change. The pace it is coming in today is a source for hope that [it] will eventually be collected,” said Ahmad Alanani, senior executive officer at Dubai-based investment bank Exotix.

“The company has scaled back on production until they were sure that payments begun. They will survive with this status quo.”

Dana Gas’ net profit grew 20 per cent to $165m in 2012, with its net production standing at an average of 60,000 barrels of oil equivalent a day.

In the third quarter of this year, it will begin drilling in the UAE Zora gas field, situated 33 kilometres offshore from Sharjah.