Dana Gas reports Dh139 million net profit in Q1-2024

Sharjah: Dana Gas announced its financial results for the three months ending on March 31, 2024.

For the first quarter of 2024, the company generated revenue of Dh356 million and net profit of Dh139 million, marking a reduction versus Q1-2023 earnings of Dh183 million. This was mainly due to lower realized hydrocarbon prices compared to Q1-2023.

In early March, the Egyptian Cabinet approved a draft law authorizing the Minister of Oil and Egyptian Natural Gas Holding Co. (EGAS) to enter into a new Concession Agreement with Dana Gas, a crucial part of its consolidation plan. The company expects parliamentary ratification of the law in the coming weeks.

On April 26, a drone attack struck a condensate storage tank at Khor Mor, immediately suspending production. However, production was fully restored in a matter of days following concrete actions by the Government of Iraq and Kurdistan Regional Government (KRG), including firm commitments to significantly enhance security and strengthen defences at the Khor Mor site.

This incident could impact the completion schedule of the KM250 project. The company continues to monitor the situation and will provide further updates to the market in due course.

Richard Hall, CEO of Dana Gas, said: "It saddens me greatly to report the tragic fatalities and injuries following an incident at our Khor Mor field. We express our deepest condolences to the families."

"Before the incident, we realized profits during the quarter despite lower condensate prices and reduced output from Egypt. In the KRI we posted strong production numbers as our plant continues to produce above the 500MMscf/d level it had reached at the end of last year. We have also made significant progress in improving our receivables in the KRI as a result of the new payment mechanism registered last year, which continues to operate seamlessly. This has allowed Pearl to resume dividend payments to the company," Hall added.

Operations & Production

Production in Q1 averaged 56,750 boepd, a 10 per cent decrease compared to 62,900 boepd in Q1-2023, and a 2 per cent increase on a quarter-on-quarter basis. KRI production was flat year-on-year at 38,600 boepd, continuing the momentum from the end of last year when it achieved record gas output of 520 MMscf/d. Production in Egypt declined 25 per cent to 18,150 boepd in Q1 from 24,200 in Q1-2023 due to natural field declines.

Liquidity

The company's cash position as of March 31 stood at Dh513 million, including Dh425 million held at the Pearl Petroleum joint venture.

The group collected Dh279 million during the first quarter, with the KRI and Egypt contributing Dh246 million and Dh33 million, respectively.

At the end of the quarter, the company's receivables in KRI stood at Dh334 million and Egypt at Dh209 million.