Egyptian output returned to growth, while a KRI adjustment boosted first-quarter earnings.
Dubai: Dana Gas posted a 72% increase in first-quarter profit, driven by a one-off gas metering adjustment in the Kurdistan Region of Iraq (KRI) and the first return to production growth in Egypt since 2017.
The Sharjah-based company, the Middle East’s largest private-sector natural gas producer, said net profit rose to Dh270 million ($74 million) in the three months to March 31, 2026.
Revenue increased 59% to Dh531 million, up from Dh334 million in the same period last year.
The headline profit increase was mainly driven by a one-off Dh176 million positive adjustment related to gas metering reconciliation in the Kurdistan Region of Iraq, partially offset by a one-off Dh22 million drilling cost in Egypt. Excluding these items, underlying net profit was Dh95 million.
Egypt returns to growth
Dana Gas said production in Egypt rose 4% year-on-year to 13,050 barrels of oil equivalent per day, marking the country’s first return to production growth since 2017.
The increase came as part of the company’s investment programme under the Consolidated Concession Agreement, which aims to stabilise output and restore sustainable growth across its Nile Delta assets.
Dana Gas said drilling and workover activities delivered early gains in the first quarter, with additional work planned through the year to sustain momentum.
Group production averaged 53,150 barrels of oil equivalent per day during the quarter, compared with 53,950 barrels per day in the same period last year, keeping overall output broadly stable.
KRI disruption weighs on volumes
Production in the Kurdistan Region of Iraq averaged 40,100 barrels of oil equivalent per day, down from 41,400 barrels a year earlier. The decline was attributed to reduced operational capacity at the Khor Mor facility in March due to regional security conditions.
Before the disruption, Dana Gas said that the completion of the KM250 expansion enabled it to demonstrate stronger system capacity, with gas production surpassing 700 million standard cubic feet per day in January.
This added 15,000 barrels of oil equivalent per day to Dana Gas’s net production in the Kurdistan Region of Iraq, pushing group output to 70,000 barrels per day—the highest level since 2018.
Operations at the Khor Mor facility were temporarily halted at the end of February and later resumed in March at reduced capacity. Dana Gas said it was still able to maintain supply to customers despite the disruption.
“Dana Gas has once again demonstrated resilience and the ability to perform in a complex operating environment, supported by disciplined execution and a stronger financial position,” said Richard Hall, CEO of Dana Gas. “During the quarter, we proactively adjusted our operations to challenging macro conditions that began in March, while continuing to supply our customers. This highlights the strength of our asset base and the flexibility of our operating model.”
Dana Gas and its partners are also advancing the Chemchemal development project, supported by a $160 million investment programme. In January, gas sales agreements were signed to supply up to 142 million standard cubic feet per day to industrial customers, helping secure demand from the field and broaden the customer base.
Liquidity strengthens
Dana Gas ended March with a consolidated cash balance of Dh836 million, including Dh348 million held at the Pearl Petroleum level.
Total collections during the quarter reached Dh249 million. Collections in the Kurdistan Region of Iraq amounted to Dh220 million, reflecting a 100% collection rate.
Egypt collections were around 50% during the quarter, but the company said it received Dh73 million in April, completing the settlement of all overdue receivables and bringing the Egypt receivables position fully up to date.
Hall said: “We have since also delivered clear progress in strengthening our financial position with a new loan facility of $75 million and the full settlement of overdue receivables in Egypt in April, bringing receivables fully up to date.”
The company secured a Dh275 million ($75 million) bank facility in March, which was fully drawn in April. Dana Gas said the facility strengthened liquidity and improved financial flexibility at a lower cost than its previous corporate facility, which was fully repaid in March.
Dividend rises 18%
Dana Gas shareholders approved a 2025 dividend of 6.5 fils per share, totalling Dh455 million ($124 million). The dividend, up 18% year-on-year, is scheduled to be paid on May 19.
The company said its focus remains on disciplined operations, key growth projects, and increased utilisation of available capacity as conditions normalise.
“Looking ahead, we remain focused on operating with discipline and flexibility, progressing our key growth projects, including Chemchemal, and maximising the use of available capacity to capture further upside as conditions continue to normalise,” Hall said.
