Dana Gas H1 profit rises 47% to Dh393 million, Egypt output gains 7%

Dubai: Dana Gas reported a 47% increase in first-half net profit to Dh393 million, or $107 million, helped by higher hydrocarbon prices, increased production in Egypt and a one-off gas metering reconciliation recognised during the first quarter.

Net profit for the six months ended June 30 rose from Dh270 million, or $73 million, a year earlier. The reported figure included a Dh176 million, or $48 million, one-off reconciliation related to gas supplied at Khor Mor between November 2018 and March 2024 that had not previously been invoiced or paid.

Excluding that item, first-half net profit stood at Dh217 million, or $59 million.

Second-quarter net profit rose 10% year-on-year to Dh123 million, or $33 million, compared with Dh112 million, or $30 million, in the same period last year.

Revenue increased 51% to Dh946 million, or $258 million, from Dh627 million, or $171 million, in the first half of 2025.

Revenue excluding the one-off reconciliation increased 23%, supported mainly by higher realised hydrocarbon prices, increased production in Egypt and higher sales gas volumes at Pearl Petroleum.

Dana Gas said its cost base increased following completion of the KM250 expansion, reflecting additional operating, depreciation and finance costs, while short-term production disruption also affected profitability during the period.

Egypt production averaged 13,300 barrels of oil equivalent per day during the first half, up 7% from 12,450 boepd a year earlier.

Dana Gas drilled three new wells and re-completed one well during the period, while two exploration wells were completed in the first half.

A further well identified an estimated 10 billion cubic feet of gas resources, compared with an original prognosis of 3 Bcf. The company said the result may support a further 12 Bcf of future gas resources across the licence area once developed.

Dana Gas plans to drill another four wells before the end of 2026.

Payment performance in Egypt also improved during the period, with all overdue receivables settled and payments continuing in full and on time.

“In Egypt, production increased year-on-year for a second consecutive quarter, while all overdue receivables were settled and payments continued in full and on time. This gives us greater confidence to continue investing in the country,” Hall said.

Production at Khor Mor exceeded 700 million standard cubic feet per day at the start of the year, while Group production reached 70,000 boepd.

Regional security-related disruption later led to intermittent suspensions and reduced operations, limiting average utilisation of the additional processing capacity delivered through the KM250 expansion.

KRI production averaged 39,600 boepd during the first half, down 2% from 40,300 boepd a year earlier.

Following further regional escalation in July, Dana Gas implemented short-term precautionary measures at Khor Mor. Operations have since resumed and production has normalised following updated security assessments and assurances from the Kurdistan Regional Government and the Government of Iraq.

Gas supplies from Khor Mor to Iraq’s Ministry of Electricity also commenced after the reporting period. Under the agreement, 100 MMscf/d will be supplied to the Kirkuk Taza power station for an initial one-year term.

“This week, gas supplies commenced to Iraq’s Ministry of Electricity. marking an important step as we begin to realise the benefits of our ongoing expansion programme. By leveraging the additional capacity created through the KM250 expansion, it lays the foundation for more cooperation on energy within Iraq’s growing market, to strengthen energy security while supporting more reliable electricity services.”

Group production averaged 52,900 boepd in the first half, broadly in line with 52,750 boepd a year earlier, with growth in Egypt offsetting intermittent operations in the KRI.

Dana Gas ended June with a consolidated cash balance of Dh843 million, or $230 million, compared with Dh638 million, or $174 million, a year earlier.

Total collections reached Dh616 million, including Dh381 million from the KRI and Dh235 million from Egypt.

The company also fully drew down a Dh275 million bank facility secured earlier in the year and completed payment of its FY2025 dividend of 6.5 fils per share, representing a total cash distribution of Dh455 million.