Dana Gas profit jumps 72% after stronger Egypt output and KRI adjustment

Dubai: Dana Gas reported a 72% rise in first-quarter profit, helped by a one-off gas metering adjustment in the Kurdistan Region of Iraq and the first return to production growth in Egypt since 2017.

The Sharjah-based company, the Middle East’s largest private sector natural gas business, said net profit rose to Dh270 million, or $74 million, in the three months to March 31, 2026. Revenue increased 59% to Dh531 million, compared with Dh334 million a year earlier.

The headline profit gain was largely supported by a one-off Dh176 million positive adjustment linked to gas metering reconciliation in the Kurdistan Region of Iraq, partly offset by a one-off Dh22 million drilling cost in Egypt. Excluding these items, underlying net profit stood at Dh95 million.

Dana Gas said Egypt production rose 4% year on year to 13,050 barrels of oil equivalent per day, marking the first return to production growth in the country since 2017.

The increase followed the company’s investment programme under the Consolidated Concession Agreement, which is aimed at stabilising output and restoring sustainable growth across its Nile Delta portfolio.

The company said drilling and workover activity delivered early gains in the first quarter, with further work planned through the year to maintain momentum.

Group production averaged 53,150 barrels of oil equivalent per day in the quarter, compared with 53,950 barrels a day in the same period last year, leaving overall output broadly stable.

Production in the Kurdistan Region of Iraq averaged 40,100 barrels of oil equivalent per day, compared with 41,400 barrels a day a year earlier. The decline reflected reduced operational capacity at the Khor Mor facility during March because of the regional security situation.

Before the disruption, Dana Gas said the completion of the KM250 expansion had allowed the company to demonstrate stronger system capacity, with gas production exceeding 700 million standard cubic feet per day in January.

That added 15,000 barrels of oil equivalent per day to Dana Gas’s net production in the KRI and lifted group production to 70,000 barrels a day, the highest level since 2018.

Operations at Khor Mor were temporarily suspended at the end of February and later resumed in March at reduced capacity. Dana Gas said it maintained supply to customers despite the disruption.

“Dana Gas has once again demonstrated its resilience and ability to perform in a complex operating environment, supported by our disciplined execution and a strengthened financial position,” said Richard Hall, CEO of Dana Gas. “During the quarter, we proactively adapted our operations to the challenging macro circumstances which started in March while continuing to supply our customers. This underscores the strength of our asset base and the flexibility of our operating model.”

Dana Gas and its partners are also progressing the Chemchemal development project, backed by a $160 million investment programme. Gas sales agreements were signed in January to supply up to 142 million standard cubic feet per day to industrial customers, helping secure demand from the field and diversify the customer base.

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 stood at Dh220 million, representing 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, or $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 settled in March.

Dana Gas shareholders approved a 2025 dividend of 6.5 fils per share, amounting to Dh455 million, or $124 million. The dividend, which is 18% higher year on year, is due to be paid on May 19.

The company said its focus remains on disciplined operations, its key growth projects and higher use 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 utilising our available capacity to capture further upside as conditions continue to normalise,” Hall said.