H1 profit was boosted by a Dh176 million one-off reconciliation, while Q2 earnings increased 10%.
Dubai: Dana Gas posted a 47% rise in first-half net profit to Dh393 million ($107 million), supported by stronger hydrocarbon prices, increased Egyptian production and a one-off gas metering reconciliation recorded in the first quarter.
Net profit for the six months ended June 30 increased from Dh270 million ($73 million) in the same period last year. The latest results included a Dh176 million ($48 million) one-off reconciliation related to previously unbilled and unpaid gas supplied at Khor Mor between November 2018 and March 2024.
Excluding the one-off reconciliation, first-half net profit was Dh217 million ($59 million).
Second-quarter net profit increased 10% year-on-year to Dh123 million ($33 million), compared with Dh112 million ($30 million) in the same period last year.
Revenue rises 51%
Revenue for the first half climbed 51% to Dh946 million ($258 million), compared with Dh627 million ($171 million) in H1 2025.
Excluding the impact of the one-off reconciliation, revenue grew 23%, driven primarily by stronger realised hydrocarbon prices, higher production in Egypt and increased sales gas volumes from Pearl Petroleum.
Dana Gas noted that its cost base rose following the completion of the KM250 expansion, reflecting higher operating expenses, depreciation and finance costs. The company also said temporary production disruptions during the period impacted profitability.
“Our results demonstrate the resilience of the business. We were able to increase production and deliver higher net profit despite the regional security environment affecting the utilisation of our expanded processing capacity in the KRI.”
— Richard Hall, CEO of Dana Gas
Egypt production increases 7%
Dana Gas’ production in Egypt averaged 13,300 barrels of oil equivalent per day (boepd) in the first half, up 7% from 12,450 boepd during the same period a year earlier.
During the period, the company drilled three new wells and carried out a re-completion on another, while two exploration wells were successfully completed in H1.
One additional well identified estimated gas resources of 10 billion cubic feet (Bcf), exceeding the initial forecast of 3 Bcf. Dana Gas said the discovery could potentially add a further 12 Bcf of future gas resources across the licence area once developed.
The company expects to drill four more wells by the end of 2026 as part of its ongoing exploration and development programme.
Payment conditions in Egypt improved during the period, with all outstanding overdue receivables cleared and payments continuing to be received in full and on schedule.
“In Egypt, production has increased year-on-year for the second consecutive quarter, while all overdue receivables have been settled and payments continue in full and on time. This strengthens our confidence in continuing to invest in the country,” Hall said.
Iraq gas supplies commence
Khor Mor production surpassed 700 million standard cubic feet per day at the beginning of the year, while the group’s total production reached 70,000 barrels of oil equivalent per day (boepd).
However, regional security disruptions later resulted in intermittent operational suspensions and lower utilisation of the additional processing capacity brought online through the KM250 expansion, affecting average production levels.
KRI production averaged 39,600 boepd in the first half, a 2% decline from 40,300 boepd recorded during the same period last year.
Following a further escalation in regional tensions in July, Dana Gas introduced short-term precautionary measures at Khor Mor. Operations have since resumed, with production returning to normal levels after updated security reviews and assurances from the Kurdistan Regional Government and the Government of Iraq.
Gas supplies from Khor Mor to Iraq’s Ministry of Electricity also began after the reporting period. Under the agreement, 100 million standard cubic feet per day (MMscf/d) will be delivered to the Kirkuk Taza power station for an initial period of one year.
“This week, gas supplies commenced to Iraq’s Ministry of Electricity, marking an important milestone as we begin to capture the benefits of our ongoing expansion programme. By utilising the additional capacity created through the KM250 expansion, we are laying the groundwork for greater energy cooperation within Iraq’s growing market, strengthening energy security and supporting more reliable electricity services.”
Cash balance reaches Dh843 million
Dana Gas’ group production averaged 52,900 barrels of oil equivalent per day (boepd) in the first half, largely unchanged from 52,750 boepd a year earlier, as higher output in Egypt offset intermittent operations in the KRI.
The company ended June with a consolidated cash balance of Dh843 million ($230 million), up from Dh638 million ($174 million) at the end of the same period last year.
Total collections during the period amounted to Dh616 million, comprising Dh381 million from the KRI and Dh235 million from Egypt.
The company also fully utilised the Dh275 million bank facility secured earlier this year and completed the payment of its FY2025 dividend of 6.5 fils per share, amounting to a total cash distribution of Dh455 million.
