Capricorn Energy said on Thursday that it received a $30 million payment this week from its dues to the Egyptian government after its debts to the company rose to $169 million last year.
Randy Neely, CEO of the company, said: “Over the course of 12 years of operation in Egypt, and in view of the above, the Egyptian government has always respected its financial obligations towards international investors.”
Capricorn Energy has suspended new drilling and investment operations in Egypt until it agrees with the General Petroleum Corporation on a payment plan.
The company is working to rearrange its strategy to focus on its assets in Egypt after two protests from shareholders over merger plans.
Capricorn announced in its financial results for the year 2023 that it recorded losses after deducting taxes amounting to $144 million, far exceeding its losses, which amounted to $67.1 million in the previous year.
The company said in its annual financial results on Thursday: “At the end of 2023, its dues to the Egyptian government amounted to about $168.7 million, an increase of $71.9 million during the year, including $143.1 million in late dues.”
The company added that, as of the date of approval of its financial results, it will seek, along with its partner in Egypt, Shiron Energy, “to obtain exemptions from lenders for a number of possibilities of default under the facilities granted, all of which are related to the lack of a plan to pay the dues from the General Petroleum Corporation.” (Reuters)