Emarat looks to restructure debt

Dubai’s premier petroleum firm, Emirates General Petroleum Corporation, popularly known as Emarat is reportedly embroiled in large amounts of debt and is currently negotiating with a number of financial firms to restructure the dues.

Arabic daily Al Khaleej quoted a source from the company as saying that the company has an accumulated debt of an estimated Dh1.2 billion. However, it has large assets which can be liquidated anytime.

The source said that the company, which operates around 170 fuel stations, has managed to stay afloat despite a huge gap between the cost of gasoline and the sale price.

“Emarat has adopted a plan that focuses on investing beyond petroleum, the profits from which has so far managed to even out the losses made in petroleum sales,” he explained.

Apart from government subsidy, which keeps prices below the cost, constant fluctuation in oil prices has made life more difficult for the company, the source added.

However, its strategy of cost reduction and expansion in support services has proved fruitful.

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