Tuesday, November 21, 2017

TANESCO doubles payment to PanAfrica

DAILY NEWS Reporter
TANESCO has almost doubled its outstanding natural gas payment to PanAfrican Energy in the first nine months of this year.

The payment has enabled PanAfrican, owned by Orca Exploration, net cash flow from operating activities to increase by 121 per cent in quarter three. A statement released by Orca Exploration, showed that a TANESCO paid 34.4 million US dollars in this year’s first nine months compared to 18.8 million US dollars in similar period last year.
On quarterly basis, Q3, the payment climbed to 10.8 million US dollars against 8.6 million US dollars. The payment, Orca said, increased net cash flows from operating activities for the quarter by 121 per cent to 14.4 million US dollars in Q3 compared to 6.5 million US dollars in Q3 2016.
Also in the first nine months was an increase of 203 per cent to 35.3 million US dollars from 11.6 million US dollars for the comparable prior year. “The increase for the quarter and the nine months ended September from the comparable prior year periods being primarily the consequence of improved cash receipts from TANESCO since the end of Q3 2016,” Orca said in release.
The company said as at end of September “the current receivable from TANESCO was US$ nil” compared to last December of 5.7 million US dollars.
During Q3 the amounts received from TANESCO were in excess of the revenue recognised for gas sales to TANESCO resulting in a deferred revenue balance of 7.5 million US dollars against nil balance, which was recorded in trade and other payables.
“As at the date of this report the TANESCO current receivable balance is US$ nil and the deferred revenue balance is 12.6 million US dollars with no change in the long-term receivable or provision,” the report said.
PanAfrican Energy operates Songosongo gas filed on behalf of Songas and also sale gas to a number of business including supplying addition gas to Tanzania Petroleum Development Corporation (TPDC) and a special agreement.

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