Dubai: The ADX-listed Dana Gas got a 3 per cent lift to its net profit for H1-2024, totaling Dh124 million. This came at improved margins and 'helped offset' the 7 per cent drop in revenue for the same period due to lower realized prices. Revenue came to Dh696 million against Dh814 million a year ago.
Dana Gas had gone through some setback at its operations in the Kurdistan Region of Iraq, when the plant there was hit by a mortar attack. This meant lower realized prices from KRI, and there was also the lower production outputs at the Egypt facility.
"Following the drone attack on the Khor Mor facility (in KRI) on April 26, concerted efforts between Dana Gas and its partners are ongoing towards setting a swift completion date for the project," Dana Gas said in a statement. "The company will update the market in due course on the revised completion date and impact on costs."
"We are dedicating all our efforts on behalf of the KRG and the people of Kurdistan to enable the earliest resumption by Pearl of KM250," said Richard Hall, CEO.
“Thanks to a newly established payment mechanism with the local government, we have seen significant improvements in our receivables in the KRI, receiving regular payments since November 2023 and effectively reducing past receivables.
"Increased production output in the KRI, driven by higher demand from local power plants, has bolstered our operational performance. Coupled with robust hydrocarbon prices, we achieved a strong financial performance despite lower condensate prices and reduced output from Egypt."
Egypt situation
Last March, the Egyptian Cabinet approved a draft law authorizing the oil minister and the Egyptian Natural Gas Holding Co. (EGAS) to finalize a new concession agreement with Dana Gas.
This is part of a 'strategic consolidation plan' that was designed to enhance the life of the Dana Gas assets in Egypt. "The revised terms should enable meaningful future investments alongside a resumption of drilling activities, positively impacting the company’s production levels in Egypt and helping the country meet its growing gas demand," said a statement.
The new agreement has been ratified by the Egyptian Parliament.
Dana Gas's overall production during H1-24 averaged 55,250 boepd, a 7 per cent drop compared to H1-2023. The output in KRI grew 3 per cent to 37,600 boepd, from 'higher gas volumes supplied to local power plants in response to increased demand'. "This continues the momentum from the previous year, when the company achieved a record gas output of 520 MMscf/d," the statement added.
